Salary Structure, Payroll Inputs and Benchmarking
This project uses synthetic data. No real people or companies are represented. How the new wage definition changes a salary structure, a monthly payroll input checklist, and a method for benchmarking pay.
I wanted to show how wage definitions, payroll inputs and market-listing data can be checked together without treating a simplified model as live payroll advice.
I designed an illustrative calculator, a monthly input checklist and a benchmarking method as a self-initiated portfolio project. No real payroll is processed.
I made the calculator assumptions visible, grouped inputs and checks, and set out a repeatable method for collecting and comparing public salary listings.
A / Salary-structure explainer
Under the Code on Wages, allowances excluded from 'wages' cannot exceed 50% of total remuneration. If they do, the excess is added back to wages for calculating statutory benefits such as PF and gratuity.
Wages
₹25,000
PF base
₹25,000
Employee PF / month
₹3,000
Employer PF / month
₹3,000
| Structure | Wages | Employee PF / month | Gratuity / 5 completed years |
|---|---|---|---|
| Old structure | ₹20,000 | ₹2,400 | ₹57,692 |
| Restructured | ₹25,000 | ₹3,000 | ₹72,115 |
Effect: take-home falls about ₹600 per month (before tax) and employer cost rises by about ₹600 per month in PF, while retirement benefits rise.
Gratuity accrual / completed year: ₹14,423
Illustrative calculator assumptions
Wages = max(Basic, 0.5 × Gross)
PF base = min(Wages, 25,000)
Employee PF = 12% × PF base; Employer PF contribution = 12% × PF base
Gratuity accrual per completed year = Wages × 15 ÷ 26
This demonstration uses a ₹25,000 PF ceiling. The Ministry announcement confirms the revised coverage ceiling from 17 September 2026; actual contributions still depend on scheme rules, membership and company policy.
Simplified model. Actual wages depend on the Code's full definition, company policy, state rules and the final rules on gratuity wages. It ignores tax. Not legal or financial advice.
B / Monthly payroll input checklist
Inputs
Checks
Statutory calendar
Professional tax: state-specific, check the state rules.
C / Compensation benchmarking mini-study
Starter sample, n = 2. This is a method demonstration. A real benchmark needs at least 15 current listings.
- 1.define the role scope
- 2.collect public listings with source, date, city, experience and salary range
- 3.normalise to annual INR (LPA) and use the midpoint
- 4.remove outliers (IQR rule)
- 5.report P25 / median / P75 as the band
- 6.compare an internal salary to the band using compa-ratio = salary ÷ band midpoint
- 7.check internal equity (same level within ±10%; review pay by gender at the same level, as in my dashboard dataset)
Supplied starter listings; source links and listed salaries have not been independently verified. “Viewed 14 Oct 2026” is the supplied observation date.
| Role | City | Salary range | Experience | Source |
|---|---|---|---|---|
| HR Executive / Generalist (on-site) | Bengaluru | ₹3–4.5 LPA | 1–5 yrs preferred | Polymer jobs listingviewed 14 Oct 2026 |
| People Data Analyst (in-person) | Bengaluru | ₹6–10 LPA | 3–5 yrs | EdTech Jobs listingviewed 14 Oct 2026 |
Listing ranges are not offers. Titles vary. Small samples mislead. Variable pay and ESOPs are excluded. Ranges are wide and city-dependent. Use as direction only.
Method demonstration with two supplied starter listings.
Simplified model. Actual wages depend on the Code's full definition, company policy, state rules and the final rules on gratuity wages. It ignores tax. Not legal or financial advice.
I would verify the current statutory notifications and collect at least 15 comparable current listings before using a pay band.