Professional Documents
Culture Documents
INITIATIVE
COMPENSATION & OTHER BENEFITS DESIGNED TO
OFFER TAX BENEFITS FOR EMPLOYEES
What is Employee Value Addition
organization.
• It is the deal struck between an organization and employee in return for their
EVA serves to define what the organization would most like to be associated with
as an employer and defines the “give and get” of the employment deal
(the value that employees are expected to contribute with the value ( monetary &
non monetary) that they can expect in return).
Employees To Structure Their Pay To Avail
Tax Benefits
• Flexible benefit plans could be offered asking the employees to allocate amounts under
various segments that they are eligible for as per their job grades.
a. Provident Fund
All Grades Or
OR 12% contribution by Employees & Like wise by the
M and . Up to to 15K Basic
b. National Pension Employer
PM
Scheme* ( Slide 10)
Fixed 15000 PA - Applicable only when bills are
Medical Allowance All Grades
submitted
E2 12000-14999
INR Up to 8000 PA
E3 6550-11999
S1 5000 - 6500
INR Up to 4000 PA
S2 > 4999
Current Block - 2014 – 2017
It can be claimed only once in 2 Years .
Allocation is available every year though Tax claim can be submitted only once in 2Years
Benefits Plan
Mobile Phone and Internet Bill reimbursement In Addition to CTC
Telephone / Mobile Allowance
Grade Name Grade Band Range
Directors / CEO/ VPs / Heads 60000 & < INR 3000 PM
M1 A/B 50001-59999 INR 1500 PM
M2 A/B 35000-50000 INR 1500 PM
M3 A/B 25000-34999 INR 1500 PM
E1 A/B 15025-24999 INR 1000 PM
Internet Allowance
Grade Name Grade Band Range
Directors / CEO/ VPs / Heads 60000 & < INR 2000 PM
M1 A/B 50001-59999 INR 1000 PM
M2 A/B 35000-50000 INR 1000 PM
M3 A/B 25000-34999 INR 1000 PM
This will be reduced by the amount recovered from you, if any. Where the employer
provides furnished accommodation, another 10% of the cost of furnishing (if owned by
employer) or actual hire charges payable (if leased by employer) is added to the perk
value each year.
Hotel accommodation provided by the employer for the first 15 days when you move
to a new town is not a taxable perquisite
Compensation Restructuring Pay Grade Samples
• Standardizing Basic Pay for all the New Joinees at 50 %
• HRA being allocated as per Metro and Non metro regions of 50% and 40 % of the
basic salary respectively
• The Salary samples as attached below contain break up for employees who have
taken up Food Coupons for a certain month alternatively for employees who don’t
avail the benefit / for the employees other than that month what would their take
home be.
• M1/ M2
• M3 &
• E2
NPS
Offered By Employers In Partnership With The Employees
• As an initiative to promote NPS for the employees working with Corporate, PFRDA
launched the NPS Corporate Sector Model in December 2011.
• Unlike EPF where Employer and Employee makes equal contribution towards
employee’s EPF account, NPS offers flexibility as mentioned below
Adding LTA, Medical and Food Coupons allowance etc… grade wise as a part of Special allowance
1 Optional NPS ( No Employer Contribution )
asldkjasldkj.......providing Tie up with Bank/s to ease the process of account opening for NPS ( To
avail tax additional benefit )
For New Employees entering the organization, whose Per Month earning is above 40000 has a
choice of opting for Either EPF or NPS ( choice of any one Employer contribution)
Options Available For EPF & NPS Conti....