One of my friends recently got an job offer which he couldn't refuse and it was apt for his caliber and skills but the trouble was that the company was not giving him any relocation costs owing to “tight” budgets, although what he was offered was around 20 lakhs per annum (a hypothetical figure). For example sake, I would say the break-up of that salary package was as follows (as per Indian Standards – figures on per annum basis);
Basic Salary: 6,00,000
HRA: 3,00,000
Conveyance: 9,600
Medical Reimbursement: 15,000
LTA: 15,000
PF Contribution: 72,000 (on entire basic)
Special Allowance: 5,88,400
Variable Pay: 4,00,000
Total: 20,000,00
If we use a smart strategy, the same salary offer can be made attractive, as follows;
Basic Salary: 5,40,000
HRA: 2,70,000
Joining Bonus: 60,000 (any other term can also be used)
Conveyance: 9,600
Birthday Allowance: 10,000
Medical Reimbursement: 15,000
LTA: 15,000
PF Contribution: 64,800
Special Allowance: 6,00,600
Meal Vouchers: 15,000
Variable Pay: 4,00,000
Total: 20,00000
In the case above, a similar salary package is made attractive by thinking out of the box. If the company cannot give relocation costs, fine! Give a joining bonus once a employee completes one month, say with a rider that if he/she leaves within six months, the same will be recovered from him/her will go a long way in creating a good image of the organization and will also help employee in settling down in another city. The quantum can be decided as per the job level. Birthday allowance is not tax free or something but again, it gives a positive impression. Some companies give additional leaves on birthdays and anniversaries. A little humane way of looking at the same thing goes a long way. In the case given above, once the employee completes one year of service, the joining bonus element can be added back to the salary, say in special allowance, as it was part of his CTC anyway. Of course there may be other options like meal vouchers which are tax-free to an extent.
Best practices can be incorporated with simple thinking and it just needs a little different way of thinking!
