Payroll Processing
    Service

    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.

    See how it works

    Free 30-minute call with a partner

    About Salary Structure Design. No obligation — we reply within one business day.

    Typical timeline

    Typically 1–3 weeks, depending on the number of grades and locations and how quickly the policy choices are agreed.

    Who leads it

    A partner — a chartered accountant or company secretary — from the first call to sign-off.

    Fees

    Based on your situation, and fixed in writing before any work starts.

    Who it's for

    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 get

    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
    How it works

    Salary Structure Design, step by step.

    Typical timeline

    Typically 1–3 weeks, depending on the number of grades and locations and how quickly the policy choices are agreed.

    1. 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. 2

      Policy choices

      We agree with you on basic pay levels, allowances, retirals, variable pay and whether employer PF sits inside CTC.

    3. 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. 4

      Structure finalisation

      We document the final components, formulas and eligibility rules, with the reasoning behind each choice.

    5. 5

      Rollout support

      We prepare revised CTC and offer templates and the configuration notes your payroll team or software needs.

    Before we start

    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
    How fees work

    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.
    FAQs

    Questions about Salary Structure Design.

    It depends on the regime each employee chooses. Most exemptions and deductions only matter under the old regime, so we model both and show you the effect rather than promise a particular saving.

    Speak with a partner

    Ready to discuss Salary Structure Design?

    30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.

    Contact details