Salary Structure Design.
We design or rework your cost-to-company breakup so it fits the Labour Codes' common definition of wages and the tax regime your employees are likely to choose. Under the Codes, if excluded allowances exceed half of total pay, the excess counts as wages for PF, gratuity and bonus, so the split between basic pay and allowances now has direct cost consequences.
Typically 1–3 weeks, depending on the number of grades and locations and how quickly the policy choices are agreed.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Companies whose basic pay is a small share of CTC and need to test it against the Code wage definition
- Start-ups formalising grades and pay bands for the first time
- Employers rethinking structures because most staff now use the new tax regime
- Businesses aligning structures after a merger or acquisition
What you receive at the end.
- 01Grade-wise salary structure with component definitions and formulas
- 02Labour Code wage-definition test for each grade
- 03Employer cost and take-home comparison under both tax regimes
- 04Revised CTC and offer letter templates
- 05Payroll configuration notes
Salary Structure Design, step by step.
Typically 1–3 weeks, depending on the number of grades and locations and how quickly the policy choices are agreed.
- 1
Current-state review
We map every pay component in use today, by grade and location, and test it against the Code wage definition and applicable minimum wages.
- 2
Policy choices
We agree with you on basic pay levels, allowances, retirals, variable pay and whether employer PF sits inside CTC.
- 3
Cost and take-home modelling
We model employer cost, PF, ESI, gratuity provision and take-home pay under both tax regimes for sample employees in each grade.
- 4
Structure finalisation
We document the final components, formulas and eligibility rules, with the reasoning behind each choice.
- 5
Rollout support
We prepare revised CTC and offer templates and the configuration notes your payroll team or software needs.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Current salary register with component-wise breakup
- Grade or band structure and headcount by location
- Existing offer letter and CTC templates
- Policies on variable pay, reimbursements and benefits
- Any settlements, standing orders or contracts that fix pay components
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Salary Structure Design.
Ready to discuss Salary Structure Design?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.