Dear All,
My request to all of you is to review and correct the following Salary Structure, which I have prepared in accordance with the new code of wages:
Basic + DA = 43,000
HRA = 12,750
CONV. ALLO = 6012
MED. ALLO = 3400
LTA = 3400
SPL/AL = 9422
GROSS SAL = 77984
EMPR PF = 5160
GRATUITY = 2068
CTC = 85212
EMPLOYEES COVERED UNDER BONUS/ESI ACT
BASIC + DA = 11380
HRA = 3300
CONV. ALL = 2200
LTA = 880
SPL/ALL = 2348
GROSS SAL = 20,108
EMPLR PF = 1,366
ESI = 151
GRATUITY = 547
BONUS = 583
CTC = 22,755
From India, Bangalore
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1My request to all of you is to review and correct the following Salary Structure, which I have prepared in accordance with the new code of wages:
Basic + DA = 43,000
HRA = 12,750
CONV. ALLO = 6012
MED. ALLO = 3400
LTA = 3400
SPL/AL = 9422
GROSS SAL = 77984
EMPR PF = 5160
GRATUITY = 2068
CTC = 85212
EMPLOYEES COVERED UNDER BONUS/ESI ACT
BASIC + DA = 11380
HRA = 3300
CONV. ALL = 2200
LTA = 880
SPL/ALL = 2348
GROSS SAL = 20,108
EMPLR PF = 1,366
ESI = 151
GRATUITY = 547
BONUS = 583
CTC = 22,755
From India, Bangalore
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Dear Gopal Ji, The definition is very clear what ever your total CTC may be, you have to look that your Basic will be 50% of CTC.
From India, Surat
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From India, Surat
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Post-Covid-19, we can expect more states to come up with the draft bill, I guess. Attend an online webinar cum Q&A on 24 June 2021, which may help those who have more queries on the Code on Wages.
Listen and collaborate with Mr. V. Muthu Manickam (Former Deputy Chief Labour Commissioner, Government of India) and Mrs. Aparna Surabhi CA (CFO, Caliber Technologies).
https://qr.ae/pGH5IT
From India, Bangalore
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Listen and collaborate with Mr. V. Muthu Manickam (Former Deputy Chief Labour Commissioner, Government of India) and Mrs. Aparna Surabhi CA (CFO, Caliber Technologies).
https://qr.ae/pGH5IT
From India, Bangalore
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Dear Arihant Sir,
Thank you for your reply. I am still confused about whether, as per the Code of Wages 2019, the Basic Salary should be 50% of Gross Salary or 50% of CTC.
Currently, our Monthly Salary components are: Basic + DA, HRA, CONV ALLOW, MED ALLOW, SPL/ALLOW, LTA = GROSS SALARY, and GROSS SALARY, EMPLR PF, GRATUITY = CTC.
I kindly request you to clarify the above.
Thank you.
From India, Bangalore
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Thank you for your reply. I am still confused about whether, as per the Code of Wages 2019, the Basic Salary should be 50% of Gross Salary or 50% of CTC.
Currently, our Monthly Salary components are: Basic + DA, HRA, CONV ALLOW, MED ALLOW, SPL/ALLOW, LTA = GROSS SALARY, and GROSS SALARY, EMPLR PF, GRATUITY = CTC.
I kindly request you to clarify the above.
Thank you.
From India, Bangalore
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Dear Mr. Gopal,
I really appreciate the clear salary structure given above. However, a more detailed explanation would have been better. We pay ex-gratia for senior management. If you could provide us with the structure on CTC/gross, it would be advisable. For example, 50% basic on gross, 30% HRA on basic, and a maximum limit for LTA/Medical split into two parts.
Employees earning below 21k are covered under ESI. How about bonuses?
From India, Vijayawada
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I really appreciate the clear salary structure given above. However, a more detailed explanation would have been better. We pay ex-gratia for senior management. If you could provide us with the structure on CTC/gross, it would be advisable. For example, 50% basic on gross, 30% HRA on basic, and a maximum limit for LTA/Medical split into two parts.
Employees earning below 21k are covered under ESI. How about bonuses?
From India, Vijayawada
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Dear Sir,
Our salary components are a certain percentage of Gross Salary, i.e., Basic + DA = 40%, HRA = 20%, Conveyance Allowance = 10%, Medical Allowance = 5%, LTA = 10%, Special Allowance = 15% of Gross Salary. CTC = Gross Salary, Employer PF is 12% of basic, Employer ESI is 3.25% of gross (wherever applicable), and Gratuity is 4.81% of basic.
Bonus is not included in our Gross salary components. It is paid once yearly. Ex gratia is not mandatory, so it's not included.
Further, please clarify whether as per the Code of Wages 2019, the Basic Salary should be 50% of Gross salary or 50% of CTC.
From India, Bangalore
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Our salary components are a certain percentage of Gross Salary, i.e., Basic + DA = 40%, HRA = 20%, Conveyance Allowance = 10%, Medical Allowance = 5%, LTA = 10%, Special Allowance = 15% of Gross Salary. CTC = Gross Salary, Employer PF is 12% of basic, Employer ESI is 3.25% of gross (wherever applicable), and Gratuity is 4.81% of basic.
Bonus is not included in our Gross salary components. It is paid once yearly. Ex gratia is not mandatory, so it's not included.
Further, please clarify whether as per the Code of Wages 2019, the Basic Salary should be 50% of Gross salary or 50% of CTC.
From India, Bangalore
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Considering the definition of wages as per the wage code, Basic and DA are neither 50% of monthly gross nor 50% of CTC. It should be 50% of all remuneration payable to any employee and expressed in terms of money, whether paid daily, weekly, monthly, bi-monthly, quarterly, half-yearly, or yearly. An exception is gratuity, which, though payable, should not be considered. The value of house accommodation, light, water, medical or any other amenity or service, though not payable and not expressed in terms of money, should be considered for calculation purposes.
Therefore, in all the above data, items like employer contributions to ESI, Gratuity, Premium to insurance, etc., should not be considered for the calculation purpose.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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Therefore, in all the above data, items like employer contributions to ESI, Gratuity, Premium to insurance, etc., should not be considered for the calculation purpose.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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Though employer's contribution to ESIC is not taken for working out the 50%, employer's contribution to PF is included, right?
Quoting Mr. S K Bandyopadhya:
Considering the definition of wages as per the wage code, Basic and DA are neither 50% of monthly gross nor 50% of CTC. It should be 50% of all remuneration payable to any employee and expressed in terms of money whether paid daily, weekly, monthly, bi-monthly, quarterly, half-yearly, or yearly with the exception of gratuity though payable but not to be considered and the value of house accommodation, light, water, medical or any other amenity or any services though not payable and not expressed in terms of money but to be considered for calculation purposes.
Therefore, in all the above data, items like employer contribution to ESI, Gratuity, Premium to insurance, etc. should not be considered for the calculation purposes.
From India, Mumbai
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Quoting Mr. S K Bandyopadhya:
Considering the definition of wages as per the wage code, Basic and DA are neither 50% of monthly gross nor 50% of CTC. It should be 50% of all remuneration payable to any employee and expressed in terms of money whether paid daily, weekly, monthly, bi-monthly, quarterly, half-yearly, or yearly with the exception of gratuity though payable but not to be considered and the value of house accommodation, light, water, medical or any other amenity or any services though not payable and not expressed in terms of money but to be considered for calculation purposes.
Therefore, in all the above data, items like employer contribution to ESI, Gratuity, Premium to insurance, etc. should not be considered for the calculation purposes.
From India, Mumbai
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Definition of wages as per Wage Code is English words and sentences to explain one mathematical equation. I have already mentioned it has three different stages. In the 1st stage, it is mentioned in the definition that wages must be payable to a person.
PF is payable to any employee after retirement, resignation, death, etc. But ESI contribution is not payable to any employee; instead, certain services are available. Organizations contributing premium to Mediclaim Insurance, Canteen subsidy, Company's arranged car to bring employees from residence and back, etc., are not payable to the employee. These are services/facilities and part of CTC, including ESI contribution, but not as a part of wages.
Lawmakers are reasonably intelligent to frame the definition such that the employer cannot deprive employees at the same time. The amount which is not payable to the employee should not be considered as part of wages. Exceptions like Gratuity, Value of house accommodation, etc., are mentioned in the definition as special items.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions 91 98310 81531
From India, New Delhi
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PF is payable to any employee after retirement, resignation, death, etc. But ESI contribution is not payable to any employee; instead, certain services are available. Organizations contributing premium to Mediclaim Insurance, Canteen subsidy, Company's arranged car to bring employees from residence and back, etc., are not payable to the employee. These are services/facilities and part of CTC, including ESI contribution, but not as a part of wages.
Lawmakers are reasonably intelligent to frame the definition such that the employer cannot deprive employees at the same time. The amount which is not payable to the employee should not be considered as part of wages. Exceptions like Gratuity, Value of house accommodation, etc., are mentioned in the definition as special items.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions 91 98310 81531
From India, New Delhi
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Code on Wages 2019.pdf