Hi Malini,
I have a query about salary payments. I'm working in a startup company, and sometimes there are delays in salary payments. I don't want employees to wait for their salaries, so I suggested to my management to pay salaries twice a month, on the 3rd and 17th of every month. If this is approved, how can I reflect this on their payslips since we make payments through the bank? Can I send the cheques to the bank twice for the salaries?
I would like to know if there would be any issues for the company or HR in implementing this practice, even if it's only for a temporary period.
Thank you.
Regards,
Malini G
From India, Hyderabad
Acknowledge(0)
Amend(0)
I have a query about salary payments. I'm working in a startup company, and sometimes there are delays in salary payments. I don't want employees to wait for their salaries, so I suggested to my management to pay salaries twice a month, on the 3rd and 17th of every month. If this is approved, how can I reflect this on their payslips since we make payments through the bank? Can I send the cheques to the bank twice for the salaries?
I would like to know if there would be any issues for the company or HR in implementing this practice, even if it's only for a temporary period.
Thank you.
Regards,
Malini G
From India, Hyderabad
Acknowledge(0)Amend(0)
Hello Malini,
Think about how you will show the deductions like PF, ESI, PT twice a month. It will complicate your statutory formalities. It is also questionable whether your bank will accept salary twice a month. Instead, you may fix a particular date, say 7th or 10th of every month for salaries. I don't think salary twice a month is advisable. Let us wait for the seniors' comments in this regard.
Regards,
Vaishalee Parkhi
From India, Pune
Acknowledge(0)Amend(0)
179Think about how you will show the deductions like PF, ESI, PT twice a month. It will complicate your statutory formalities. It is also questionable whether your bank will accept salary twice a month. Instead, you may fix a particular date, say 7th or 10th of every month for salaries. I don't think salary twice a month is advisable. Let us wait for the seniors' comments in this regard.
Regards,
Vaishalee Parkhi
From India, Pune
Acknowledge(0)Amend(0)
Hi Malini,
I agree with Vaishali; however, you may consider changing the attendance and salary cycle to allow more time for salary preparation and fund transfers. Another option could be to split payments by grade into two parts, with the first part due before the 10th to ensure time for other statutory formalities. Additionally, the payment cycle could be for the previous month.
Please let me know if any corrections are needed.
Regards,
Hardik
From India, Pune
Acknowledge(0)Amend(0)
I agree with Vaishali; however, you may consider changing the attendance and salary cycle to allow more time for salary preparation and fund transfers. Another option could be to split payments by grade into two parts, with the first part due before the 10th to ensure time for other statutory formalities. Additionally, the payment cycle could be for the previous month.
Please let me know if any corrections are needed.
Regards,
Hardik
From India, Pune
Acknowledge(0)Amend(0)
Dear Malini,
The same thing happened in my company too, and we did the following:
1. During the recession, the salary of middle & top management was released in two terms – 75% on the 7th and 25% on the 25th of the month, but the salary slip was generated only on the 7th.
2. Currently, salaries up to 12K are released on the 7th, and amounts above that are released on the 10th of every month. Additionally, all allowances (which are not shown in the salary slip but are counted in CTC) are released on the 25th of every month.
You can also follow the same process.
From India, Pune
Acknowledge(0)Amend(0)
The same thing happened in my company too, and we did the following:
1. During the recession, the salary of middle & top management was released in two terms – 75% on the 7th and 25% on the 25th of the month, but the salary slip was generated only on the 7th.
2. Currently, salaries up to 12K are released on the 7th, and amounts above that are released on the 10th of every month. Additionally, all allowances (which are not shown in the salary slip but are counted in CTC) are released on the 25th of every month.
You can also follow the same process.
From India, Pune
Acknowledge(0)Amend(0)
You can make lumpsum advances cadrewise and the same advances can be recovered fully in the salary. Pon
From India, Lucknow
Acknowledge(0)Amend(0)
From India, Lucknow
Acknowledge(0)Amend(0)
Dear Malini,
You can make fortnightly payments to all the employees. After making the payment, you have to create a consolidated summary of their salaries and prepare your PF Remittance Details, ESI Remittance Details, and Professional Tax as per the attached sheet.
From India, Kumbakonam
Acknowledge(0)Amend(0)
You can make fortnightly payments to all the employees. After making the payment, you have to create a consolidated summary of their salaries and prepare your PF Remittance Details, ESI Remittance Details, and Professional Tax as per the attached sheet.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Dear Malini,
What I can make out is that the above problem occurs mainly due to a couple of reasons:
1) Attendance Issue: Your salary may be getting delayed due to the collating of attendance, which at times is a huge task (when you don't have attendance software) or if no cut-out period is set for attendance.
Solution: You need to introduce the attendance cut-out period. For example, let's assume that the salary payment date is the last working day of every month. Let's take July 11-month salary. Collate attendance data (on 21st July 11) for the month of July for the period 1st July to 20th July (consider 20th as the cut-off date). Process the salary for the whole month and pay the next 10 days considering them as fully present. Adjust the leave data of July (period 21st Jul - 30th Jul) in the following month pay cycle.
This will give you a time of 10 days to collate & process salary, which is more than sufficient to process any headcount salary for any organization.
2) Due to Funds: At times, the salary payment gets held up due to a delay in arranging funds.
Solution: You need to introduce a process of intimating the tentative payout cost details. You should intimate the cost details to the Finance/Treasury team 2-3 days before the actual salary payment day.
Do look into this process in your organization and see if this helps.
Regards,
RB
From India, Pune
Acknowledge(0)Amend(0)
What I can make out is that the above problem occurs mainly due to a couple of reasons:
1) Attendance Issue: Your salary may be getting delayed due to the collating of attendance, which at times is a huge task (when you don't have attendance software) or if no cut-out period is set for attendance.
Solution: You need to introduce the attendance cut-out period. For example, let's assume that the salary payment date is the last working day of every month. Let's take July 11-month salary. Collate attendance data (on 21st July 11) for the month of July for the period 1st July to 20th July (consider 20th as the cut-off date). Process the salary for the whole month and pay the next 10 days considering them as fully present. Adjust the leave data of July (period 21st Jul - 30th Jul) in the following month pay cycle.
This will give you a time of 10 days to collate & process salary, which is more than sufficient to process any headcount salary for any organization.
2) Due to Funds: At times, the salary payment gets held up due to a delay in arranging funds.
Solution: You need to introduce a process of intimating the tentative payout cost details. You should intimate the cost details to the Finance/Treasury team 2-3 days before the actual salary payment day.
Do look into this process in your organization and see if this helps.
Regards,
RB
From India, Pune
Acknowledge(0)Amend(0)
Dear Malini,
My suggestion would be to calculate their actual salary, including statutory deductions, and then divide the net salary into two installments for payment. This approach can help avoid any statutory-related issues.
Regards,
Suresh
From Spain
Acknowledge(0)Amend(0)
My suggestion would be to calculate their actual salary, including statutory deductions, and then divide the net salary into two installments for payment. This approach can help avoid any statutory-related issues.
Regards,
Suresh
From Spain
Acknowledge(0)Amend(0)
Dear Malini: You can give 50% of salary as advance on 7th and salary on 15th of the month after deducting the advance. This may be a way to solve your problem. Regards.
From Bangladesh
Acknowledge(0)Amend(0)
From Bangladesh
Acknowledge(0)Amend(0)
Hi all,
I am working in engineering; it's been running for a long time, but there has been no HR person in this company. I have started here initially. What things should I do in this company? Please help to improve the HR area in this particular area.
Kindly help,
Mangala Dabke
From India, Mumbai
Acknowledge(0)Amend(0)
I am working in engineering; it's been running for a long time, but there has been no HR person in this company. I have started here initially. What things should I do in this company? Please help to improve the HR area in this particular area.
Kindly help,
Mangala Dabke
From India, Mumbai
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.