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Compensation in Retail Sector

The document discusses compensation in the retail sector in India. It notes that the retail sector has grown rapidly at 46.64% annually and includes various store formats. Retail companies offer benefits like HRA, CCA, mobile and medical reimbursements as part of employee compensation. Compensation includes the basic salary as well as provisions like PF, ESI, bonuses and medical insurance. The conclusion states that standard compensation plans along with indirect compensation are important for retaining talented employees in the competitive retail industry.

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Shashank
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248 views

Compensation in Retail Sector

The document discusses compensation in the retail sector in India. It notes that the retail sector has grown rapidly at 46.64% annually and includes various store formats. Retail companies offer benefits like HRA, CCA, mobile and medical reimbursements as part of employee compensation. Compensation includes the basic salary as well as provisions like PF, ESI, bonuses and medical insurance. The conclusion states that standard compensation plans along with indirect compensation are important for retaining talented employees in the competitive retail industry.

Uploaded by

Shashank
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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COMPENSATION IN

RETAIL SECTOR
COMPENSATION

Employees exchange work for rewards. Probably


the most important reward, & certainty the most
obvious, is money. The goals of compensation
administration are to design the lowest cost pay
structure that will attract, motivate & retain
competent employees & that will be perceived
as fair by these employees. Compensation
forms an important aspect in strategic Human
Resource Management.
THE RETAIL INDUSTRY

Retail sector is the fastest growing sector in the


Indian economy with a three year compounded
annual growth rate of 46.64%. Traditional
markets are making way for new formats such
as departmental stores, hyper markets, super
markets & specialty stores.
KINDS OF BENEFITS OFFERED BY
THE RETAIL COMPANIES
 HRA would be 50 or 60% of basic.
 CCA - 825/- is exempted from tax

Other Allowance

 Mobile Reimbursement
 Medical Reimbursement of 1250/month is exempted
from tax
CALCULATION
 Gross per Month = Sum of all the above.
 Gross Per Annum= 12*Gross/Month
 PF Contribution= 12% of Basic/Annum
Contd….
 ESI Contribution = 4.75% of Gross/Annum

 Medical = the mediclaim facility provided to an employee


who are not covered under ESI as the maximum ceiling
for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim
or it depends on company policy

 EX-Gratia/Bonus = A fixed amount as Bonus

 Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia


Contd….
 Annual Total Cost = AFGC + PF+ESIC

 Annual total cost is also called as CTC.

Apart from this Food coupons, Holiday package and


Furnishing items are included in their CTC.
SALARY COMPONENT IN RETAIL
SECTOR

Salary Component
CONCLUSION
Retail sector today is the most booming and competitive
sector in the Indian industry carrying huge opportunities
and risk. So in order to meet the requirements very
efficient work force and management is required.

To achieve the organization’s objective and retain


efficient workforce, standard compensation plan is
required. Along with standard compensation it is very
important for the organization’s to pay indirect
compensation to their employees in order to retain the
talented work force.
REFERENCES:
 Stephen and Robbins, Personnel management, wage
and salary administration, 1996, p. 482-512.
 The ICFAI University press, 2006, p. 45-54
 Marketing Mastermind, September 2007, p. 65-74
 http://www.salary.com
 http://www. Payslip.com
 http://en.wikipedia.org/wiki/Ex_gratia
 http://www.citehr.com/compensation-in-retail-industry-
vt49508.html
THANK YOU

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