We want to revise our salary structure because people who come for interview want more salary in hand. We deduct PF, ESIC (if applicable) and PT from gross salary to arrive at net salary.
Following is our current salary structure which is being followed since 2016 and it was recommended by our labour consultant:
Gross: 15,000.
Basic Salary: 9000 (60% of Gross).
HRA: 2250 (15% of Gross).
Medical Allowance 1500 (10% of Gross).
Education Allowance 1500 (10% of Gross).
Washing Allowance 750 (5% of Gross).
Deduction
ESIC (1.75% of Gross- Washing Allowance) i.e. 250.
PF (12% of Basic Salary) i.e 1080.
PT 200
Net Salary: 13470
The consultant says if you reduce basic to say 30-40% of gross the labour officer will raise objection and we will have to pay arrears for pf purpose hence it is better to keep it at 60%.
Please study this existing salary structure and provide guidance on how to improve it.
Following is our current salary structure which is being followed since 2016 and it was recommended by our labour consultant:
Gross: 15,000.
Basic Salary: 9000 (60% of Gross).
HRA: 2250 (15% of Gross).
Medical Allowance 1500 (10% of Gross).
Education Allowance 1500 (10% of Gross).
Washing Allowance 750 (5% of Gross).
Deduction
ESIC (1.75% of Gross- Washing Allowance) i.e. 250.
PF (12% of Basic Salary) i.e 1080.
PT 200
Net Salary: 13470
The consultant says if you reduce basic to say 30-40% of gross the labour officer will raise objection and we will have to pay arrears for pf purpose hence it is better to keep it at 60%.
Please study this existing salary structure and provide guidance on how to improve it.