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11. COMPENSATION AND BENEFITS:

A. COMPENSATION AND BENEFITS POLICY:
Remuneration Policy
Remuneration Policy describes the remuneration practices of the company. Remuneration
consists of salary, commissions and other types of benefits. In an easy word, If a person works in
a company and against his work what he/ she receives is known as remuneration.

Principal
 It has main target to bring the transparency about the policy
 Reduce complexity and brings the adequate transparency
 It is important for both the employee as well as employer


Objective
It is necessary for an employer to retain the employers and keep them happy as a term of salary,
wages and other benefits.

Key factors
Components-
1) Salary & Wages- Basic difference between salary and wages are, Salary is monthly basis
and wages are daily basis.
2) Incentives- We can call it as payment by result, example like if the company gets profit,
then the company may distribute that in terms of profit. This is mainly payable to lower
level post or to the middle level post.
3) Fringe Benefit- Benefits like canteen, medical facilities, insurance and so on.
4) Perquisites- It has the same concept like incentives, but it is applicable to the higher level
managers like, club membership, furnished house, paid holidays and so on.
5) Non-monetary- Job rotation, job enlargement, job enrichment.

Factors

External Internal
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External factors-
1) Economy- It consider the country economy like boom or recession or depression. If the
country economy in a boom stage, the company will pay higher, if the recession occurs
the company might pay lower.
2) Going Rate- It means the other competitors are paying what amount to their employees.
3) Demand & Supply- Demand and supply means demand of the employees and supply of
them. Example- If the company has a demand of 30 employees but they have only 20, the
company have to pay high remuneration to the employees.
4) Labour Union- Remuneration also depend upon the negotiation power of the Labour
union of the company. If they have high bargaining power then, the company have to pay
higher remuneration to them.
5) Cost of Living- It means how much the company expenses for a particular employee.
6) Society- It means the conditions of the surrounded society also has an impact on
remuneration rate.

Internal Factors-
1) Business Strategy- If the Business strategy of the company is to pay low
remuneration, then to retain employee they have to think about the other benefits also.
2) Employees- It also depends upon the qualities of employees and their educational
background, their skillsets and so on.
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B. CTC STRUCTURE FOR EMPLOYEES:

CTC Structure
Name of the Employee Manish Sharma
Designation Product Analyst
Cost To Company 600000
Fixed Component 600000
Variable NA

CTC Structure
Annually Monthly
Basic 300000 25000
Dearness Allowance 51000 4250
House Rent Allowance 140400 11700
Medical Reimbursement 15000 1250
Leave Travel Allowance 0 0
Conveyance Allowance 0 0
Accomdation Allowance 0 0
Grade Pay 93600 7800
Gross Salary 600000 50000
Deductions
Provident Fund - Employee 42120 3510
Provident Fund - Employer 42120 3510
Professional Tax 2500 208.3333333
TDS 30000 2500
ESIC 0 0
Gratuity 14430 1202.5
Total Deductions 131170 10930.83333

Take Home A-B (Net Salary) 468830 39069.16667

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CTC (Annexure-A) (FORMAT)

Monthly Components Per Month (Rs.) Annualized (Rs.)

Basic
HRA
DA
Conveyance Allowance
Medical Reimbursement
Leave Travel Allowance
Accommodation Allowance
Attire Allowance
Special Allowance
Sub Total
Company’s Contribution to EPF
Company’s Contribution to ESIC (4.75% of Gross
Pay)
Grade Pay
CTC

Deductions Per Month

PF (Employee Contribution @ 12% of Basic Pay)
ESIC (Employee Contribution @ 1.75% of Gross Pay)
Professional Tax (As per slab)
Total Deduction

In Hand Salary Per Month (Approx.)

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C. PAYSLIP:

PAY SLIP
Flat No.4, Siddhivinayak Residency,
DP Road, S.No. 243, Baner, Pune- 411007 Month: ____________
95117-95465 Year: ____________
info@bluebenz.com

Employee Details Pay Date Hours Pay Type

Worked
Name:
Designation:
Contact: Period Hourly Pay Tax Code
Address:

Monthly Salary: ____________

Earnings Amount Deductions Amount

Basic & DA PF
HRA TDS
Conveyance ESIC
Bonus/Incentive Earned Loan
Professional Tax
Total Earnings Total Deduction
Net Salary Credited:

In words: ________________________________________________________________
Name of the Bank: ____________________________ Cheque Number: _____________
Date: __________________________

Employee Signature: Director’s Signature:

_________________ _________________
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Appointment Letter (CTC Breakup)

Flat No.4, Siddhivinayak Residency, DP Road, S.No. 243, Baner, Pune- 411007
95117-95465
info@bluebenz.com

Name: Date: -
Address:
Letter of Appointment

Dear _____,
We are delighted to formally Appoint you as ______ at BlueBenz Digitizations Pvt. Ltd for a fixed
tenure of ______ which will be governed by the terms and conditions as following:
The appointment will be effective from (Date) ______to _______ in an annualized salary of
(CTC)_________. The gross emolument will be paid to you as provided in Annexure-A, attached
with this letter. The appointment shall be subject to renewal or dissolution, as the case may be, after
the expiration of aforementioned date and tenure, i.e., the appointment will come to an end after the
completion of the aforesaid date unless the same is extended by the company in written.
We Congratulate and Welcome you to our dynamic team and wish you a long and fulfilling career
with us. We believe that your worthy involvement and contribution would help us lead the path of
success. We assure you of our support for your professional growth and development.

Authorized Signature
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D. CTC – COMPETITOR’S ANALYSIS:

CTC- Competitors Analysis
CTC 600000
Annual
Basic 240000.00
Dearness Allowance 40800.00
House Rent Allowance 112320.00
Conveyance Allowance 19200
Medical Reimbursement 15000
Leave Travel Allowance 20000
Child Education 2400
Child Hostel 7200
Employee Provident Fund 33696.00
Employer Provident Fund 33696.00
Accommodation Allowance 24000
Gratuity 0
Grade Pay 51688.00
Total 600000.00

CTC Structure 600000

Annually Monthly

Basic 240000 20000

Dearness Allowance 40800 3400
House Rent Allowance 112320 9360
Conveyance Allowance 19200 1600
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Medical Reimbursement 15000 1250

Leave Travel Allowance 20000 1667
Child Education 2400 200
Child Hostel 7200 600
Accommodation 24000 2000
Allowance
Grade Pay 290408 24201
Total (A) 771328 64277.33333 Gross Salary
Deductions
Provident Fund – 33696 2808
Employee
Provident Fund – 33696 2808
Employer
Professional Tax 2400 200
TDS 30000 2500
ESIC 0 0
Gratuity 0 0
Total (B) 99792 8316
Take Home A-B 671536 55961.33333 Net Salary