This document summarizes the components and structure of a typical salary package. It includes fixed payments like basic salary and allowances for housing, transport, education and other expenses. It also includes variable payments like bonuses and incentives, as well as non-monetary benefits like company cars and stock options. Retirement benefits like provident fund contributions and insurance are also covered. The objectives of compensation planning and governance/compliance considerations are outlined. Specific examples of the breakdown of various salary components are provided.

1. SALARY STRUCTURE

2. Compensation is the total
amount of the monetary
and non-monetary pay
provided to an employee by
an employer in return for
work performed as
required.
Compensation also
includes payments such
as bonuses, profit
sharing, overtime pay,
recognition rewards and
checks, and sales
commission.
COMPENSATION

3. The ultimate goal of compensation planning is
to reward and encourage employees to do well
in their jobs. Some of the objectives are sought
to be achieved through effective compensation
planning like:
• Entice the employees
• Retain the best talent
• Ensure equity
• Reward new ideas and
behaviors
• Cost control
• Compliance
OBJECTIVES

4. • Classification of Salary Components
• Compensation Structure
• Governance/Compliance
• Sample Salary Component Structure
CONTENT

5. COMPOSITION OF SALARY STRUCTURE

6. • Basic, House Rent Allowance
• Conveyance/Transport, Child
Education Allowance, Special/Other
Allowance, etc.
Fixed Salary
• Medical, Leave Travel Allowance
(LTA)
• Petrol/Vehicle Maintenance, Driver,
Telephone, etc.
Reimbursement
Component
• Car, Accommodation,
Fixed/Moveable Assets
• ESOP, etc.
Non-Monetary /
Perks
COMPONENT DETAILS

7. • Bonus/Performance Bonus
• Incentive, Exgratia, etc.
Deferred
Payments
• Group Medical/Accident Insurance,
Life Insurance
• Provident Fund, ESI, Gratuity
• Superannuation, Pension Fund, etc.
Retirement
Benefits
COMPONENT DETAILS

8. Fixed Salary Details
Basic Salary 40% to 50% of CTC
House Rent Allowance
50% of Basic Salary for Metro
Cities
(Chennai, Mumbai, Delhi and
Kolkata)
40% of Basic Salary for Other
Cities
Conveyance / Transport Allowance
Rs. 800 per month (for
handicapped Rs. 1600 per month)
Child Education Allowance
Rs. 100 per child/per month
(maximum of two children’s)
Other / Special Allowance
As per Section 10(14) of Income
Tax act.
FIXED SALARY

9. Non-Monetary Benefits / Perks Details
Company Car
As per company car policy to
senior management staff
Accommodations
Company provided
accommodations
Fixed Assets
Fixed Assets / Furniture &
Fixtures
Employee Stock Option Plan
(ESOP)
As per company ESOP plan
Others
Food Coupons (Rs. 1100pm),
Gas, Electricity & Water
Helper , House Maid, Gardener,
etc.
NON-MONETARY BENEFITS

10. Reimbursement Components Details
Medical
Rs. 15000 p.a. (for self, spouse and
dependants)
Leave Travel Allowance (LTA)
One month basic salary
Two claims in a block of 4 years (current
block 2014 - 2017)
Telephone
As per company compensation policy Rs.
2000 – 4000 p.m.
Vehicle Maintenance/Petrol
Employer car (fuel & maintenance
expenses met by employer)
No limit – Up to Rs.10000 p.m.
Employee car (fuel & maintenance
expenses met by employer)
a. Rs. 1800p.m. for small car (with 1.6cc)
b. Rs. 2400 p.m. for big car (with above
1.6 cc)
Driver
Recommended for senior management
staff
REIMBURSEMENT COMPONENT

11. Retirement Benefits Details
Company Contribution to
Provident Fund
12% of PF wage
Gratuity 4.81% of basic p.m.
Superannuation
As per company policy / trust by-
laws
Pension Fund
As per company policy or New
Pension Scheme (NPS)
Insurance
Group Mediclaim Insurance
Group Life Insurance, etc.
Employer Contribution to
Employees State Insurance (ESI)
4.75% of ESI wage
RETIREMENT BENEFITS

12. • Ensure that the salary components are in compliance
with income tax rules and labour laws
• Refer to minimum wages act-state rules for any
specific segment of workers
• Union employees salary structures are governed by
Union agreement/settlement
• Ensure that the special/other/personal
allowance is lesser than the other
components in salary structure
GOVERNANCE AND COMPLIANCE

14. • Your variable is set approximately 20% - 30% of your
package
• 80% of your variable will depend upon your performance
rating/billability etc. 20% will depend on the company
performance.
• 80% of your variable will come in your salary with the
heading "Variable Allowance".
• The company performance amount will be credited on a
quarterly basis based on the company’s Quarterly result.
This will come under the heading "Miscellaneous"
• You can find some unique deductions like "Labour Welfare"
and "TCS Welfare Trust". The TCS Welfare Trust is used in
case of medical emergencies which require high cost of
treatment. This is amount is shared by all members of Tata
Group of Companies
• You can get Sodexo coupons an save tax

16. • In Accenture, you have the flexibility to change your
package.
• You can decide your own basic.
• however, there is a limit to that. You cannot have
more than 45% of your package to be assigned to
basic.
• There is a lower limit as well

17. THANK YOU !!!