Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross.
As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and P.F. Act.
Please suggest and guide me.
From India, Hyderabad
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As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and P.F. Act.
Please suggest and guide me.
From India, Hyderabad
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Dear spsr, Do mention the reason for calculating the basic percentage as 25 % where generally it is calculated as 40% & 50% in organizations?
From India, Bangalore
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482From India, Bangalore
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Dear Mahesh,
I was asking that, as per the Payment of Wages Act, basic must be more than the other components, i.e., at least 51%. We can reduce the basic to 30%, 40%, or 50% such that the basic is not less than Rs. 6,500. However, in this case, it is Rs. 4,500, which is less than Rs. 6,500.
I hope that we shouldn't, and we don't have the right to reduce it to 25%. I say that we can reduce it to a maximum of 36.11% in this case (as the Gross is Rs. 18,000, Basic is 36.11% - Rs. 6,500). However, my colleagues are telling me that we can reduce it to even 25%. I argue that if the PF commissioner finds it during inspection, he will issue a DEMAND NOTE.
Is my argument right, or are my colleagues correct?
From India, Hyderabad
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I was asking that, as per the Payment of Wages Act, basic must be more than the other components, i.e., at least 51%. We can reduce the basic to 30%, 40%, or 50% such that the basic is not less than Rs. 6,500. However, in this case, it is Rs. 4,500, which is less than Rs. 6,500.
I hope that we shouldn't, and we don't have the right to reduce it to 25%. I say that we can reduce it to a maximum of 36.11% in this case (as the Gross is Rs. 18,000, Basic is 36.11% - Rs. 6,500). However, my colleagues are telling me that we can reduce it to even 25%. I argue that if the PF commissioner finds it during inspection, he will issue a DEMAND NOTE.
Is my argument right, or are my colleagues correct?
From India, Hyderabad
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Please help me with the issue below.
Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross?
As per my knowledge, and as an HR professional, I believe we shouldn't do this because it violates the Payment of Wages Act and the P.F Act.
Please suggest and guide me.
From India, Hyderabad
Acknowledge(0)Amend(0)
Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross?
As per my knowledge, and as an HR professional, I believe we shouldn't do this because it violates the Payment of Wages Act and the P.F Act.
Please suggest and guide me.
From India, Hyderabad
Acknowledge(0)Amend(0)
Please suggest to me on the following issue.
Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross?
As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and the P.F. Act.
Please suggest and guide me.
From India, Hyderabad
Acknowledge(0)Amend(0)
Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross?
As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and the P.F. Act.
Please suggest and guide me.
From India, Hyderabad
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Dear Member,
Please clarify which section or rule is going to be violated under these Acts?
Regards,
R.N.Khola
Please suggest me on the following issue: Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross? As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and the P.F. Act. Please suggest and guide me.
From India, Delhi
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Please clarify which section or rule is going to be violated under these Acts?
Regards,
R.N.Khola
Please suggest me on the following issue: Can we bifurcate Basic as Rs. 4,500/- (25%) for an employee having Rs. 18,000/- as Gross? As per my knowledge, and as an HR professional, I hope we shouldn't do it because it violates the Payment of Wages Act and the P.F. Act. Please suggest and guide me.
From India, Delhi
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Dear Mr. Khosla,
Regarding compensation and benefits, there is no specific rule related to the fixation of Basic Salary. However, it is always advisable to align the basic salary with the organization's structure. Other components such as PF, ESI, and Gratuity are also calculated based on the Basic and Gross Salary. It is essential to ensure that the Basic salary is always higher than the other salary components.
Thank you.
From United Kingdom
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Regarding compensation and benefits, there is no specific rule related to the fixation of Basic Salary. However, it is always advisable to align the basic salary with the organization's structure. Other components such as PF, ESI, and Gratuity are also calculated based on the Basic and Gross Salary. It is essential to ensure that the Basic salary is always higher than the other salary components.
Thank you.
From United Kingdom
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1 Amendment to The Payment of Wages Act to pay Salary by Cheque or NEFT.pdf
PAYMENT OF WAGES ACT 2009.doc