Trending @Accenture; How to allocate ex gratia amount in compensation
Hi, My CL is 9, Im new to flexi pay structure. How to allocate ex gratia amount in compensation plan? Which is best practice to allocate? How much % we can allocate to basic, personal and other allowance category? Is there any criteria to have some default % to personal allowance? Can we allocate all amt to basic and make personal and other allowance as very low?
Basically it comes down to the balance between In Hand salary and Tax Saving.
More Basic means, more EPF and NPS deduction but better full and final payment after resignation.
So if you are planning to switch jobs or want to reduce taxes go for maximum basic.
If tax saving is not a priority, better keep 50% in Basic and rest in ex gratias.
Thank you so much.. It is so helpful to make decisions.
+1
