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Please describe why a salary structure is divided into different categories? - CiteHR

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Please describe why a salary structure is divided into different categories?


rafay.moeen
Hi, I am designing a salary structure for a cosmetic company. Please describe why a salary structure is divided into different categories? Like Medical, House rent, CLA, Conveyance etc. Is it important to do so? Place where I previously worked, was providing medical facility as well but still some amount is mentioned as \"Medical\" over salary slip.
From Pakistan, Karachi
talentsorcerer
89
Rafay: Salaries are structured to ensure employees can plan their expenditure (nominal) and save on tax (strong reason). If you work with a good C.A or an HR/Tax consultant, then you'll get the right components and their limits (per provisions in the IT Act)
Hope this helps.
From India, Mumbai
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10 December 2014 05.44.07 AM
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