Pay structure or salary structure is based on hierarchy of jobs, grades and related level and associated components of compensation and benefits.
Please refer figure below for understanding the grade structure in TVS Motor Company.

Our pay or compensation structure varies according to, role and grade. We at TVS Motor have concept of CTC (cost to company) with following components (applicable from A1 to C3)

Component	Description	Calculation	Frequency of payment/allocation
Basis Salary	this is the salary based on Role and task requirement and is decided on the basis of qualification, experience and special skills	@ Min 30% of CTC	Monthly
HRA	House Rent Allowance is allowance given for taking care of accommodation requirement of employee and family	@ 40% of Basic	Monthly
Conveyance Allowance	Allowance provided to facilitate individual to travel from home to office and back	As per IT Act	Monthly
Medical allowance	Allowance provided to employees for any medical expenditure incurred as outpatient.		Monthly
Uniform Maintenance	Allowance provided to employees for maintenance of uniform	2000/-	Monthly
LTA	Leave Travel Allowance is provided for	1.5 times of basic	Annual
Provident Fund	Provident fund (employer contribution) is allocated to employee PF account as per The Employees’ Provident Fund and Miscellaneous provisions Act 1952 Employee contribution is deducted from monthly salary of employee	12% of basic	Monthly
Gratuity	Gratuity allocation as per The Payment of Gratuity Act 1972	5% of Basic	Monthly
Performance Incentive	Performance incentive or variable pay for eligible employees (C1 & above) for encouraging them to achieve higher performance	Min 8% to 20%of CTC	Annual
Bonus / Ex-gratia	This is grade based emolument and payable as per Payment of Bonus Act 1965 (applicable from A1 to B1)	20% of Minimum wages as Min Wages Act and Wage rules	Annual

In addition to CTC, there are some allowances applicable for some roles and is not part of CTC

Component	Description	Calculation	Frequency of payment/allocation
Sixth Day allowance	Employees from A1 to B2 grade, who are working in six-day pattern are eligible	2 day basic	Monthly
Shift allowance	Employees who are working in night shift (2 nd or 3 rd ), allowance based on applicable policy would be paid	No of days in shift x shift allowance	Monthly
Adhoc allowance	It is applicable for field employees to support for local conveyance	Fixed amount	Monthly
Field Incentive	This scheme is applicable to TM – Sales /Service, AM – Sales /Service roles	As per policy guidelines	Quarterly

These allowances are withdrawn in case of change of shift pattern / role, where these are not applicable.

Further to understand your monthly pay-outs, Please refer annexure 5 on understanding salary slip. In case of more clarification, contact payroll section in finance

For understanding, compensation structure for D1 & above, refer to the guidelines available with Corporate

In order to continually achieve the organisation’s results and to provide financial rewards for such achievements, an incentive will be paid to eligible employees based on company and individual performance, measured against key targets determined during annual target setting.

This policy allows for an incentive to be paid to eligible employees based on the following criteria:
C1 – C3: Individual performance – 75% and Company performance – 25%
D1 & above: Individual performance – 60% and Company performance – 40%

Performance incentive or variable pay is applicable for the M2 and above grade.

Following are guidelines for Performance incentive calculation and pay-out

• This incentive plan is based on key annual targets and performance assessed over the Financial Year (FY)
• Pay-outs are made in April for the previous year FY ended on March 31
• Employees confirmed during the current FY are paid pro-rata incentive, calculated effective their date of joining till March 31 of the previous FY
• Incentive is paid only when either individual or company performance is above the threshold score of 85%; In case individual performance of any eligible employee is below the threshold level (i.e. individual performance score < 85%), only company Performance incentive pay-out will be paid
• Left employees are paid pro-rata incentive in April, only if the employee has served for a minimum of six months in the previous FY and scored > 85%
• No performance incentive will be paid to any eligible employee under following circumstances:
  • Leaving the company before completion of six months in the assessment period
  • Availing maternity benefit / authorised medical leave for a minimum of six months (continuous / with intervals)
  • Terminated as a result of long absence/ non-performance/ violation of TVSM code of conduct

As purpose of the PI is to accelerate performance, PI calculation based on score is not linear, eg: Individual performance score of 100, pay-out will be 100% of individual component, while for 101 will be 104% of eligible amount and for 99%, pay-out would be 98% of eligible amount

Sample Performance incentive calculation is given below:

• Compensation is benchmarked with market
• Compensation decision for hiring are based on benchmarked pay range
• Our philosophy is pay for position, performance and potential/Proficiency
• Compensation review is carried out after completion of Financial year based on various factors
• Your compensation is your personal, In case of any issues, please discuss with your manager / reviewer or HR Partner / PMS team.