The Methodology

  THE OBJECTIVE: The BT-Omam Consultants Salary Survey was designed to obtain data on the designations and salaries of middle managers.

  THE GRADES: Two universal grades were defined: Middle Management-I, comprising all those who head a department. And Middle Management-II, comprising all those who either head a section within a department or are second in command. The typical designations were: Middle Management-I: Deputy General Manager/Senior Manager/Manager; Middle Management-II: Senior Manager/Manager/Deputy Manager/ Assistant Manager. 

  THE SAMPLE: A sample of 100 companies, including Indian firms and transnationals, was drawn up after ensuring the adequate representation of various sectors.

  THE MODUS OPERANDI: A questionnaire was designed to elicit information on the value and the mode of compensation. And interviews were conducted with the CEO, the HRD head, and a top-level manager.

  THE ANALYSIS: The data was analysed by an Omam Consultants' team.

  THE COMPUTATION: To evaluate the components, the following assumptions were made: 

  BASIC SALARY: Actual average of the salaries paid. In cases where fixed salaries are paid, those have been considered. 

  HOUSING BENEFITS: To compare the rupee equivalent of company-owned or leased housing, a Standard Assumed Value (SAV)-depending on the location of the head-office-was used. When the SAV exceeded a company's prescribed limit for housing, that limit was used instead. Where the limits were not specified, the following values were used: Middle Management-I: Calcutta/Delhi/Mumbai: Rs 20,000. Other Cities: Rs 15,000. Middle Management-II: Calcutta/Delhi/Mumbai: Rs 12,000. Other Cities: Rs 10,000. In cases where company-leased accommodation is not provided, the House Rent Allowance was considered.

  FURNITURE: For company-provided furniture and furnishing, 10 per cent of the cost was considered as the company's annual cost.

  CAR BENEFITS: With a fully-maintained company car, the monthly cost was considered as follows: Esteem/Contessa/Maruti 1000 AC: Rs 20,000. Fiat 118NE/Zen AC: Rs 15,000. Ambassador/Fiat/Maruti AC: Rs 12,000. Ambassador/Fiat/Maruti Non-AC: Rs 10,000. For drivers, either the actual salary or a fixed amount of Rs 4,500 was imputed. Elsewhere, the actual amount reimbursable as driver allowance was considered. In the absence of a company car, conveyance reimbursement at actuals was taken.

  As for perquisites, the following suppositions were made in the absence of a fixed allowance: Newspapers & Magazines: Rs 500 per month at actuals; Servant Allowance: Rs 1,500 per month per servant; Gas, Electricity, and Water: Rs 2,500 per month; Soft Furnishing Allowance: Rs 2,000 per month; Flat Maintenance Allowance: one month's basic salary per annum; Entertainment: Rs 3,000 per month; Foreign Travel: Rs 2,500 per eligible individual per month; Club Membership: Rs 300 per month per club membership; Rs 100, where only entry fee was payable; Credit Card: Rs 200 per card; Lunch: Rs 500 per month if provided free or at a nominal cost or actual amount; Professional Body Membership: Rs 100 per month; and Telephone: Rs 1,500 per month.

  For benefits, the following assumptions were made: Medical Benefits: one month's Basic or the stated figure; Pension: 15 per cent of one month's Basic; Provident Fund: 12 per cent of the Basic; Gratuity: half month's Basic per year of service, unless otherwise stated; Superannuation: 15 per cent of one month's Basic per annum. 

  THE PRESENTATION: The compensation package has been divided into six segments: Salary. Perquisites. Conveyance. Housing Benefits. Medical Benefits. And Retirement Benefits. Instead of presenting details about each sub-category as in the past, aggregated figures for each category have been used this time. Annual payments have been divided by 12 to arrive at monthly equivalents, and the monthly total is the aggregate of the monetised values of each of these six components. Disaggregated data on digital medium is available from BT for a fee.