Dear all,
Greetings!
Please guide me on the topic below.
We have a manufacturing company based in Uttar Pradesh. Last month, we signed an agreement between the employer and our marketing staff as follows:
For the first 2 months of each quarter, a lump sum of Rs 25,000 shall be paid after each month. After the completion of the 3rd month, the total commission shall be calculated for all 3 months, and the balance amount shall be paid (this amount can be less or more than Rs. 25,000 depending on the actual commission). If there is any shortfall, it can be recovered from the staff. This way, every 3 months, the accounts shall be settled to date.
My query is, we are already paying a salary of Rs. 30,000 per month. How can we show their salary as less in the salary register, and what do we need to transfer as per the agreement, the lump sum of Rs. 25,000 (meaning less than the existing salary)?
Please guide me if this is acceptable or not. If acceptable, what is the procedure for transitioning from salary to commission-based pay?
How can I manage this situation?
Your opinion is highly appreciated.
Thanks,
Dinesh
9871819625
From India, Calcutta
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1Greetings!
Please guide me on the topic below.
We have a manufacturing company based in Uttar Pradesh. Last month, we signed an agreement between the employer and our marketing staff as follows:
For the first 2 months of each quarter, a lump sum of Rs 25,000 shall be paid after each month. After the completion of the 3rd month, the total commission shall be calculated for all 3 months, and the balance amount shall be paid (this amount can be less or more than Rs. 25,000 depending on the actual commission). If there is any shortfall, it can be recovered from the staff. This way, every 3 months, the accounts shall be settled to date.
My query is, we are already paying a salary of Rs. 30,000 per month. How can we show their salary as less in the salary register, and what do we need to transfer as per the agreement, the lump sum of Rs. 25,000 (meaning less than the existing salary)?
Please guide me if this is acceptable or not. If acceptable, what is the procedure for transitioning from salary to commission-based pay?
How can I manage this situation?
Your opinion is highly appreciated.
Thanks,
Dinesh
9871819625
From India, Calcutta
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Dear Dinesh , I wanted to now are you looking for HR services or solutions for your company . Regards Yugandhara
From India, Mumbai
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From India, Mumbai
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Dear Dinesh,
You may show these entries as remuneration instead of salary. And that too in the agreement, it can be stated as performance-linked salary.
Regards,
Manoj Tiwari
Advocate
BT.Manoj@gmail.com
From India, Mumbai
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You may show these entries as remuneration instead of salary. And that too in the agreement, it can be stated as performance-linked salary.
Regards,
Manoj Tiwari
Advocate
BT.Manoj@gmail.com
From India, Mumbai
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If you are paying salary, you can not stop it and reduce it................... In addition to salary if you are paying incentives/commission in advance then you can adjust/recover it later..
From India, Chandigarh
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From India, Chandigarh
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Dear Dinesh,
The best way to manage this issue is to break that lump-sum amount into two parts (30% + 70%). In the first part, you should show it as Basic Salary + DA and mention it in the wages register. For the second, larger part of the same, you need to show it as a performance-based incentive or performance bonus.
At the end of the third month of every quarter, you can easily adjust any shortfall or other discrepancies from this same amount.
Thank you.
From India, Delhi
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The best way to manage this issue is to break that lump-sum amount into two parts (30% + 70%). In the first part, you should show it as Basic Salary + DA and mention it in the wages register. For the second, larger part of the same, you need to show it as a performance-based incentive or performance bonus.
At the end of the third month of every quarter, you can easily adjust any shortfall or other discrepancies from this same amount.
Thank you.
From India, Delhi
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Hi Arunoday ji,
I have a query regarding salary management. If a person is already receiving Rs. 30,000 for his home, how can we show his salary as Rs. 25,000 in the wage register?
Furthermore, if after 3 months it is found that he has not achieved his target and the commission calculated is less than Rs. 25,000, how do we transfer the balance to his account, and how can we recover it from him?
Kind regards,
Dinesh
9871819625
From India, Calcutta
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I have a query regarding salary management. If a person is already receiving Rs. 30,000 for his home, how can we show his salary as Rs. 25,000 in the wage register?
Furthermore, if after 3 months it is found that he has not achieved his target and the commission calculated is less than Rs. 25,000, how do we transfer the balance to his account, and how can we recover it from him?
Kind regards,
Dinesh
9871819625
From India, Calcutta
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Well after perusing your query I counsel two best possible ways to take care of your issues:-
First Way
First and foremost you have to make clean salary structure in which their salary would be 9000(Basic+DA) [If I consider their reimbursement 30,000/month], it must be mentioned in wages register along with all the mandatory Govt. Compliance (PF,ESIC Etc.)
Now rest same amount 21,000 considered as Performance Based Incentive (P.B.I.)
In Your next step you have to put on hold their 2 Months’ P.B.I. on hold and in the last of third month you will have to release the entire three month PBI along with this month salary after the computation of budget achievement. (You can also deduct the compliance expenditures from this PBI amount too)
Second Way:-
Please review their budget achievement on month on month basis.
For this same working you have to give them every month’s Robust Sales Closing date 25th or 26th or 27th after this closing date please review their %Achievement and then release their P.B.I. along with their salary .
From India, Delhi
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First Way
First and foremost you have to make clean salary structure in which their salary would be 9000(Basic+DA) [If I consider their reimbursement 30,000/month], it must be mentioned in wages register along with all the mandatory Govt. Compliance (PF,ESIC Etc.)
Now rest same amount 21,000 considered as Performance Based Incentive (P.B.I.)
In Your next step you have to put on hold their 2 Months’ P.B.I. on hold and in the last of third month you will have to release the entire three month PBI along with this month salary after the computation of budget achievement. (You can also deduct the compliance expenditures from this PBI amount too)
Second Way:-
Please review their budget achievement on month on month basis.
For this same working you have to give them every month’s Robust Sales Closing date 25th or 26th or 27th after this closing date please review their %Achievement and then release their P.B.I. along with their salary .
From India, Delhi
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Performance.Bas ed.Management.p df
Competency-base d HR Management.ppt