Comprehensive Insights on Salary Break Up and Compensation Structure - Expert HR Advice

Hi Amit,

Thank you for your appreciation. Can you help me out by explaining the basic structures of salary issues? Are there any specific topics in HR books or any recommended readings that could help in gaining a better understanding of this important subject?

Regards, Anupriya Bhattacharya

Hi Anupriya,

You are most welcome. If you go through my post, you will find a very simple salary structure that has been prepared there. Just arrange them in an Excel sheet and play with that using Excel formulas.

Prepare a variety of CTC structures as it will enhance your skills further.

Regards,

Amit Seth

Dear,

Salary breakup:
70% = basic + HRA + PF (Company contribution)
30% = other Allowance

or

60% - 40%

Regards,
Vibhor

Dear Amit, Sandeep,

I am yet to receive clarification on whether I need to break down the salary as you mentioned - basic 30%, HRA 40%, and the rest. Could you please clarify this for me? Is it a mandatory rule that I must adhere to, or is it flexible for me to allocate as per the benefit of both the company and the employee? Kindly provide me with this information at your earliest convenience.

Vasanthi

Hi Vasanthi,

It's not compulsory that you structure it like this. You may structure it in your own way, keeping in view the employees' benefits. For example, if the basic pay is low, then their PF contribution would also be low. Similarly, you can prepare so that the employees' take-home salary is handsome.

Regards,
Amit Seth

Hi Amit,

I want to ask you one question: to what extent should a person be computer literate to excel in the HR profession? How can knowledge of SAP-HR in today's scenario help an HR professional in establishing the best brand in the industry?

Looking forward to an insightful reply.

Regards,
Anupriya Bhattacharya :)

Hi, AnuPriya,

These days, computer literacy is an essential part of the HR profession. At least, you must have skills to work on MS-Office as well as the Internet.

- Every day, you have to make reports, and every report can't be made manually within a specified period of time.
- To impart training or to present something, you are required to prepare presentations.
- To prepare a database of employees, you are required to be proficient in Excel.
- To calculate rates
- To prepare salary structures
- MIS preparation

In short, everything in HR nowadays is computerized. To work systematically, you must be systematic, and your work style should be smart - smart in terms of accuracy, speed, and perfection.

Having knowledge of the SAP-HR module is an added advantage for an HR professional. Nowadays, many companies are implementing ERP to centralize their systems, and within ERP, one of the modules is HR. Having working knowledge of the HR module provides an extra advantage during recruitment.

By the way, what does it mean [Waiting for an intelligent reply.]... 🙄 🙄 🙄

Anyways, I hope this information will be useful for you.

Regards,

Amit Seth.

That was a perfect salary break-up to understand for common people. Excellent job. Keep it up.

Regards,
DVD

Hi,

I am Dhara, working as Sr. HR at IT Company. Right now we have not salary breck-up. i would like to introduce it. But I haven’t too much legal knowledge of salary break-up. Please tell me appropriate book on it which will be guide me.

Dear All,

I still need some more clarifications on SALARY BREAKUP because in my org we currently have:

Basic - 50% of Gross CTC - 25% of basic Medical - 1250 Conveyance - 800 Misc - Rest amount

And our Account dept has proposed a new one, which is:

Basic - 60% of Gross HRA - 30% of Gross Medical - 5% of Gross Conveyance - 5% of Gross

I don't think this breakup is good. Please advice ASAP.

Kanchan (HR) :icon1: [Login to view]