Hi friends,
We announced a pay hike for an employee on 1st March. He resigned on 16th March, but we asked him to continue until 7th of April. Now, in the F&F salary calculation for the seven days in April, is it okay if we calculate at the earlier rate or do we have to do it at the revised rate?
I would be grateful if anyone could answer my query.
Thanks,
Neel
From India, Pune
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We announced a pay hike for an employee on 1st March. He resigned on 16th March, but we asked him to continue until 7th of April. Now, in the F&F salary calculation for the seven days in April, is it okay if we calculate at the earlier rate or do we have to do it at the revised rate?
I would be grateful if anyone could answer my query.
Thanks,
Neel
From India, Pune
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It depends on the type of pay hike. Whether the same was for all the employees or only for that particular employee as a part of retention.
If it is for all, then F&F settlement should be calculated considering his new salary; else, the old salary has to be considered for his F&F settlement.
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If it is for all, then F&F settlement should be calculated considering his new salary; else, the old salary has to be considered for his F&F settlement.
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Hi Neel,
In your description for the pay hike, you have mentioned that you announced it on 1st March. Did you specify when the revised salary would be effective? I mean, did you mention this with effect from 1st March? If you did, then the Full and Final Settlement (F&F) will be based on the new salary; otherwise, the old salary would be applicable.
I assume you have completed the F&F process for the concerned employee by now, in line with your request date. Please let me know how you conducted the F&F for the employee.
Thanks,
Geetika
From India, Bangalore
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In your description for the pay hike, you have mentioned that you announced it on 1st March. Did you specify when the revised salary would be effective? I mean, did you mention this with effect from 1st March? If you did, then the Full and Final Settlement (F&F) will be based on the new salary; otherwise, the old salary would be applicable.
I assume you have completed the F&F process for the concerned employee by now, in line with your request date. Please let me know how you conducted the F&F for the employee.
Thanks,
Geetika
From India, Bangalore
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Neel,
If you are paying the March salary as per the new structure, the Full and Final (F&F) settlement will also follow the new structure. If the salary hike has not been confirmed in writing, then you have the option to process the F&F at the old rate as well.
Anand
From United States
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2If you are paying the March salary as per the new structure, the Full and Final (F&F) settlement will also follow the new structure. If the salary hike has not been confirmed in writing, then you have the option to process the F&F at the old rate as well.
Anand
From United States
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His F&F settlement will be according the new salary, as you already salary for march with revised rate according to salary revision w.e.f. 1st march thanks
From India, Mumbai
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From India, Mumbai
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Hi Neel, :P
I think you must calculate the physical working days of the employees during the increment date to the resignation date. If it is =>2/3rd of the total days, then you should give him his full and final settlement according to the new rate; otherwise, you can calculate his F&F only giving arrears for the current month, and the rest of the compensation will be according to the old wages.
Regards,
Sachin Pathak
Manager-HR
RR Honda, Delhi
Email: sachi_bh12@rediffmail.com, Sachin@rrhonda.com
From India, Delhi
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I think you must calculate the physical working days of the employees during the increment date to the resignation date. If it is =>2/3rd of the total days, then you should give him his full and final settlement according to the new rate; otherwise, you can calculate his F&F only giving arrears for the current month, and the rest of the compensation will be according to the old wages.
Regards,
Sachin Pathak
Manager-HR
RR Honda, Delhi
Email: sachi_bh12@rediffmail.com, Sachin@rrhonda.com
From India, Delhi
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