What is a salary structure definition?

What is a salary structure definition?

A salary range structure (or salary structure) is a hierarchal group of jobs and salary ranges within an organization. Salary structures often are expressed as pay grades or job grades that reflect the value of a job in the external market and/or the internal value to an organization.

What is the purpose of salary structure?

Salary structures help employees understand how much they can expect to earn at a minimum and what the maximum earning potential is for their role. There are some salary structures that employers can utilize based on business strategy.

What is a wage and salary structure?

Wage and salary structure consists of the various salary grades and their different levels of single jobs or groups of jobs. The term wage structure is used to describe wage/salary relationships within a particular grouping.

What are the types of salary structure?

Three types of salary

  • Net Salary: Simply speaking, this is the salary you get in your hands and thus also sometimes called an in-hand salary.
  • Gross salary: This is the salary which is shown in the payslip.
  • CTC: CTC or cost-to-company is the total monetary benefit provided by the employer for the complete financial year.

How do you determine salary structure?

How to calculate your take-home salary?

  1. Step 1: Calculate gross salary. Gross Salary = CTC – (EPF + Gratuity)
  2. Step 2: Calculate taxable income. Taxable Income = Income (Gross Salary + other income) – Deductions.
  3. Step 3: Calculate income tax**
  4. Step 4: Calculating in-hand/take home salary.

How do you decide your salary structure?

How to Establish Salary Ranges

  1. Step 1: Determine the Organization’s Compensation Philosophy.
  2. Step 2: Conduct a Job Analysis.
  3. Step 3: Group into Job Families.
  4. Step 4: Rank Positions Using a Job Evaluation Method.
  5. Step 5: Conduct Market Research.
  6. Step 6: Create Job Grades.
  7. Step 7: Create a Salary Range Based on Research.

What is a pay structure of an employee or employee group?

Salary Details is used to define the pay structure for an employee or an employee group.

What are the components of salary structure?

Components of Salary Structure

  • Basic Salary. Basic salary is the base income of an employee, comprising of 35-50 % of the total salary.
  • Allowances. Allowance is an amount payable to employees during the course of their regular job duty.
  • Gratuity.
  • Employee Provident Fund.
  • Professional Tax.
  • Perquisites.
  • ESIC.