Before redesigning the salary structure the following points should be considered:
1. Flexible plan benefit given to Executive:
CTC will be divided into Gross (Taxable) and Flex plan benefit (Non Taxable
income)
2. Non Taxable benefit extend to Car Expenses, white goods, Personal travel, Medical
Reimbursement, Food allowance, Educational Allowance etc.
2. Before fixing the Gross Salary we should consider the percentage of Basic i.e,
it will reflect into PF, Leave encashment, Gratuity etc.
3. PF ceiling as per act less than or equal to Rs.6500/- if basic is more than
Rs.6500/- need not cover the PF Benefit
4. ESI Ceiling as per act Gross salary less than or equal to Rs.7500/-
5. Before fixing the Salary structure you can refer Income tax benefits
6. CTC may be extened to Variable pay also.
November 22, 2008
Salary Structure
Posted by Prem Kumar at 11:53 AM 0 comments
Labels: Compensation and Benefit
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