Hi,
I recently joined a construction company as an HR Executive, and we are currently in the process of grading and salary fixation. I am confused about the salary breakdowns (% of Basic and HRA) specifically for marketing roles. Could you please advise on how we should prepare the salary breakdowns for marketing positions? Also, I am wondering if the construction industry typically follows a specific salary breakdown structure. If there is a standard breakdown for this industry, could you please share the details?
Thank you.
From India, Bangalore
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I recently joined a construction company as an HR Executive, and we are currently in the process of grading and salary fixation. I am confused about the salary breakdowns (% of Basic and HRA) specifically for marketing roles. Could you please advise on how we should prepare the salary breakdowns for marketing positions? Also, I am wondering if the construction industry typically follows a specific salary breakdown structure. If there is a standard breakdown for this industry, could you please share the details?
Thank you.
From India, Bangalore
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Hi,
There is no separate breakdown for marketing and others. If needed, you shall use different formats. All the breakdowns are just to reduce tax burdens, and there are no strict rules. You shall use the below format for your reference:
Basic: 50% on Gross (Make sure the basic is not less than the minimum wages as per the Karnataka Minimum Wages Act)
HRA: 40% on Basic
Conveyance Allowance: 800/- per month
Medical Allowance: 1250/-
Balance as Special Allowance or Other Allowance
Please review and let me know if you need any further assistance.
From India, Bangalore
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653There is no separate breakdown for marketing and others. If needed, you shall use different formats. All the breakdowns are just to reduce tax burdens, and there are no strict rules. You shall use the below format for your reference:
Basic: 50% on Gross (Make sure the basic is not less than the minimum wages as per the Karnataka Minimum Wages Act)
HRA: 40% on Basic
Conveyance Allowance: 800/- per month
Medical Allowance: 1250/-
Balance as Special Allowance or Other Allowance
Please review and let me know if you need any further assistance.
From India, Bangalore
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Dear sir,
I also need clarification on wages. We are a construction company having subcontractors who pay Rs. 187 to unskilled workers, but show Rs. 6600 to some workers to avoid PF. Can they do this? Because Rs. 6600 is the total amount, is it mandatory to split this amount into basic (min wage Rs. 4850 in Gurgaon), HRA, and conveyance? Please advise.
Regards,
Sanjeev Chauhan
Sr. Executive Compliance
From India, New Delhi
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I also need clarification on wages. We are a construction company having subcontractors who pay Rs. 187 to unskilled workers, but show Rs. 6600 to some workers to avoid PF. Can they do this? Because Rs. 6600 is the total amount, is it mandatory to split this amount into basic (min wage Rs. 4850 in Gurgaon), HRA, and conveyance? Please advise.
Regards,
Sanjeev Chauhan
Sr. Executive Compliance
From India, New Delhi
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Dear Sanjeev,
If Basic & DA is more than Rs. 6500/-, there is no need to pay PF. If the contractor is doing so, I don't think there will be a problem. However, please ensure that the contractor is not charging PF from the employer.
Best Regards,
Praveen
From India, Bangalore
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If Basic & DA is more than Rs. 6500/-, there is no need to pay PF. If the contractor is doing so, I don't think there will be a problem. However, please ensure that the contractor is not charging PF from the employer.
Best Regards,
Praveen
From India, Bangalore
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Hi,
I'm still confused about framing the salary structure for the construction industry (Tamil Nadu Gov Act), such as the percentage of basic, percentage of HRA, and how to calculate the educational allowance, conveyance, and other allowances.
Regards,
MS.
From India, Bangalore
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I'm still confused about framing the salary structure for the construction industry (Tamil Nadu Gov Act), such as the percentage of basic, percentage of HRA, and how to calculate the educational allowance, conveyance, and other allowances.
Regards,
MS.
From India, Bangalore
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Dear Praveen,
Thank you! Actually, the contractor is showing a basic salary of 6600/- per month, and the calculation of wages is based on the actual number of days worked. For 28 days, the salary given is 5961/- with no PF deduction but an ESIC deduction of 105/-. Is this correct? In another case, the salary components show a basic salary of 7000/- + HRA 1000/- with no PF deduction. Can he show salary components as only basic + HRA?
Please advise.
Thanks & regards,
Sanjeev
From India, New Delhi
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Thank you! Actually, the contractor is showing a basic salary of 6600/- per month, and the calculation of wages is based on the actual number of days worked. For 28 days, the salary given is 5961/- with no PF deduction but an ESIC deduction of 105/-. Is this correct? In another case, the salary components show a basic salary of 7000/- + HRA 1000/- with no PF deduction. Can he show salary components as only basic + HRA?
Please advise.
Thanks & regards,
Sanjeev
From India, New Delhi
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Dear Mr. Jeevarathnam,
Could you please clarify my query posted here? Also, ESIC should be deducted at 1.75% on the gross monthly or actual wages paid by the contractor to the worker because he has deducted based on actual wages paid. Looking for support from you as well.
Regards, Sanjeev Chauhan
From India, New Delhi
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Could you please clarify my query posted here? Also, ESIC should be deducted at 1.75% on the gross monthly or actual wages paid by the contractor to the worker because he has deducted based on actual wages paid. Looking for support from you as well.
Regards, Sanjeev Chauhan
From India, New Delhi
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Hi,
I'm still confused with framing the salary structure for the construction industry (Tamil Nadu Gov Act), such as the percentage of basic salary, percentage of House Rent Allowance (HRA), and how to calculate the educational allowance, conveyance, and other allowances.
Regards, MS.
From India, Bangalore
Acknowledge(0)Amend(0)
I'm still confused with framing the salary structure for the construction industry (Tamil Nadu Gov Act), such as the percentage of basic salary, percentage of House Rent Allowance (HRA), and how to calculate the educational allowance, conveyance, and other allowances.
Regards, MS.
From India, Bangalore
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