All HR terms

HR TERMS, EXPLAINED

Salary Structure

How total pay is divided into basic, HRA, allowances and bonuses. It decides PF, gratuity, tax and take-home pay.

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Salary Structure

In simple words: The salary structure is how the total pay is divided into different parts, such as basic, HRA, allowances and bonuses. Two people with the same total pay can have very different structures.

Example: For a ₹40,000 package, one company might keep basic at ₹20,000 and HRA at ₹8,000. Another might keep basic at ₹14,000 and put the rest into allowances.

Why it matters: The structure decides how much goes to PF and gratuity, how much tax an employee pays and what they take home. Since the labour codes have changed how wages are defined, many companies are reviewing theirs.

See also: Salary Structure Under the New Labour Codes 

Definitions are general guidance. Your organisation's policies and applicable local requirements determine how a term is used in practice.

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