# Usually how do HR Departments calculate compensation and benefits?

**URL:** <https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018>\
**Category:** General Discussions\
**Tags:** hr-policies\
**Created:** [September 19, 2022, 8:25am UTC](https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018 "2022-09-19T08:25:26Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Anushree](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@Anushree](https://community.greythr.com/u/Anushree)\
**Post date:** [September 19, 2022, 8:25am UTC](https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018/1 "2022-09-19T08:25:26Z")

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Usually how do HR Departments calculate compensation and benefits?

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**Author:** ![Kaulin](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/kaulin/32/2425_2.png) [@Kaulin](https://community.greythr.com/u/Kaulin)\
**Post date:** [September 21, 2022, 9:22am UTC](https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018/2 "2022-09-21T09:22:15Z")

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Hey @Anushree,

Human resources managers usually design the compensation as per the ongoing market rate they pay to the employees after completing a specific task weekly, fortnightly or every month. Specific market rates meant and designed for each position holder in the company helps to ascertain the pay clear to the roles and responsibilities.

Hope this clarifies your query.

Regards,

Community Manager.

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**Author:** ![sogemar2024](https://avatars.discourse-cdn.com/v4/letter/s/c57346/32.png) [@sogemar2024](https://community.greythr.com/u/sogemar2024)\
**Post date:** [September 5, 2023, 11:43am UTC](https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018/3 "2023-09-05T11:43:21Z")

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C&B shiuld be based on benchmarking in particular sector or industry. There is 5% variation gap between each sector and industry. Gap analysis will help in getting the best C&B practices if we factor in rise in cost of living expenses.

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**Author:** ![ellenpro](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/ellenpro/32/6668_2.png) [@ellenpro](https://community.greythr.com/u/ellenpro)\
**Post date:** [September 17, 2026, 12:32pm UTC](https://community.greythr.com/t/usually-how-do-hr-departments-calculate-compensation-and-benefits/6018/4 "2026-09-17T12:32:41Z")

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Most companies set a salary range for each role based on market rates, then place people within it based on experience and internal fairness.

On top of base pay, they add benefits like PF, gratuity, and insurance to make up the total package (CTC).

Bonuses or raises are usually tied to yearly performance, with the whole structure reviewed now and then to stay competitive.