How to Fix Salary Basic, and Allowances

How to Fix Salary Basic, and Allowances for newly hired office staff.

Qualification Based Salary:  You can fix the salary based on Professional Qualification. Most of the companies also have grading systems. They specify the grading based on qualification. For example, for graduation, they have 12th Grade, and 14 for Master Qualifications. And they offer a salary to new staff according to grades only, and also offer increments as per grades. Like two increments for 12th Grade, and three increments for 14 Grades, and likewise.

Professional Experience-Based Salary:

You can also fix the salary as per the experience of the employee. For the senior employees, you must have to pay more salary than the lower experience staff.

Designation Based Salary:

Sometimes it is necessary to fix the salary as per the designation of the employee. For example, if you are hiring two persons. One as manager, and the other as executive, or assistant then you must have to pay more salary for the manager, and less for the other post, or junior post.

Work Load Based Salary:

Most of the labor, or daily worker salaries are fixed on the basis of workload, and efforts to complete work.

Working Hours Based Salary:

A most simple form to fix wages of the daily worker, or regular employees. Just pay per hour. This type of salary system mostly used in larger factories where a large number of workers perform the same tasks like production units, stitching units, etc.

Author: David Beckham

I am a content creator and entrepreneur. I am a university graduate with a business degree, and I started writing content for students first and later for working professionals. Now we are adding a lot more content for businesses. We provide free content for our visitors, and your support is a smile for us.

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