I am contemplating a proposal for a new salary structure for our trainee recruits and would greatly appreciate your input. Here are the salary structures I am considering:
For Graduates (BE, B.Tech):
- During the initial 3 months, the salary would be 12000.
- From the 4th to the 6th month, it would increase to 14000.
- Between the 7th and 9th month, it would be raised to 16000.
- From the 10th to the 12th month, it would escalate to 18000.
At the end of 1 year, upon confirmation, the salary would be adjusted accordingly, and PF deductions would commence.
For those Below Graduate level (Apprentice, Diploma):
- For the first 3 months, the salary would be 10000.
- From the 4th to the 6th month, it would increase to 12000.
- Between the 7th and 9th month, it would be raised to 14000.
- From the 10th to the 12th month, it would escalate to 16000.
After a year, following confirmation, the salary would be adjusted accordingly and PF deductions would start.
I would appreciate your thoughts on whether the above salary structures could be implemented for trainee recruits. Additionally, I would be grateful for any input on legal salary ranges for such roles.
From India, Ahmedabad
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6For Graduates (BE, B.Tech):
- During the initial 3 months, the salary would be 12000.
- From the 4th to the 6th month, it would increase to 14000.
- Between the 7th and 9th month, it would be raised to 16000.
- From the 10th to the 12th month, it would escalate to 18000.
At the end of 1 year, upon confirmation, the salary would be adjusted accordingly, and PF deductions would commence.
For those Below Graduate level (Apprentice, Diploma):
- For the first 3 months, the salary would be 10000.
- From the 4th to the 6th month, it would increase to 12000.
- Between the 7th and 9th month, it would be raised to 14000.
- From the 10th to the 12th month, it would escalate to 16000.
After a year, following confirmation, the salary would be adjusted accordingly and PF deductions would start.
I would appreciate your thoughts on whether the above salary structures could be implemented for trainee recruits. Additionally, I would be grateful for any input on legal salary ranges for such roles.
From India, Ahmedabad
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The proposed salary structure seems to be a good start, providing a clear progression for trainees as they gain experience and contribute more to the organization. However, there are a few points to consider:
1. Legal Compliance: Ensure that the proposed salary structure complies with the Minimum Wages Act, 1948, which stipulates the minimum wages for different types of work and is applicable across India. The minimum wage varies from state to state, so it's essential to check the specific requirements for Ahmedabad.
2. PF Deductions: As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, PF deductions should start from the first day of employment. The employer and the employee each contribute 12% of the employee's basic salary towards the PF.
3. Salary Adjustments: It's important to have a clear policy on how salaries will be adjusted after the first year. This could be based on performance, market rates, or a combination of factors.
4. Market Competitiveness: Check the market rates for similar roles in Ahmedabad to ensure that your salary structure is competitive. This will help in attracting and retaining talent.
5. Communication: Clearly communicate the salary structure and progression to the trainees. This will help them understand their earning potential and career growth within the organization.
Remember, any changes to the salary structure should be in line with the company's budget, business goals, and HR policies. It's always a good idea to consult with a labor law expert or HR consultant to ensure that your salary structure is legally compliant and competitive.
From India, Gurugram
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1. Legal Compliance: Ensure that the proposed salary structure complies with the Minimum Wages Act, 1948, which stipulates the minimum wages for different types of work and is applicable across India. The minimum wage varies from state to state, so it's essential to check the specific requirements for Ahmedabad.
2. PF Deductions: As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, PF deductions should start from the first day of employment. The employer and the employee each contribute 12% of the employee's basic salary towards the PF.
3. Salary Adjustments: It's important to have a clear policy on how salaries will be adjusted after the first year. This could be based on performance, market rates, or a combination of factors.
4. Market Competitiveness: Check the market rates for similar roles in Ahmedabad to ensure that your salary structure is competitive. This will help in attracting and retaining talent.
5. Communication: Clearly communicate the salary structure and progression to the trainees. This will help them understand their earning potential and career growth within the organization.
Remember, any changes to the salary structure should be in line with the company's budget, business goals, and HR policies. It's always a good idea to consult with a labor law expert or HR consultant to ensure that your salary structure is legally compliant and competitive.
From India, Gurugram
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dear Sir ,
1. As far as Graduate Trainees (BE/B.TECH / Diploma) is concerned you may visit the various engineering colleges @ Ahmedabad. this will help you to introduce your company as brand and secondly you will have wide scope to meet many aspirants.
2. However, while hiring Graduate Trainee Engineers, you may consider INR 25,000/- per month and for diploma @ INR 20,000/- per month. in order to have good candidates.
3. After one year, you may regularize their salary revision as per company rules.
4. from day 1, you will have to cover them as per statutory requirements like PF, ESIC etc.
5. If you are aiming at developing young team for future and if you are planning to continue out of these trainees for subsequent then please have some buffer.
e.g. if you want five to six trainee engineers to continue then try to hire @ 10.
**As far as Apprentice are concerned, you may register your company in vocational board from where you will have access to recruit through various ITI's @ stipulated stipend for at least one year with no binding to continue and that to without any statutory requirements like PF, ESIC during apprentice period.
Thanks
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1. As far as Graduate Trainees (BE/B.TECH / Diploma) is concerned you may visit the various engineering colleges @ Ahmedabad. this will help you to introduce your company as brand and secondly you will have wide scope to meet many aspirants.
2. However, while hiring Graduate Trainee Engineers, you may consider INR 25,000/- per month and for diploma @ INR 20,000/- per month. in order to have good candidates.
3. After one year, you may regularize their salary revision as per company rules.
4. from day 1, you will have to cover them as per statutory requirements like PF, ESIC etc.
5. If you are aiming at developing young team for future and if you are planning to continue out of these trainees for subsequent then please have some buffer.
e.g. if you want five to six trainee engineers to continue then try to hire @ 10.
**As far as Apprentice are concerned, you may register your company in vocational board from where you will have access to recruit through various ITI's @ stipulated stipend for at least one year with no binding to continue and that to without any statutory requirements like PF, ESIC during apprentice period.
Thanks
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Dear colleagues,
I may add to what have been stated by others. From my experience I may say, once the compulsory 'Trainee' period is successfully completed, say after one year or so, the candidates eagerly await regularisation by confirmation in their regular stream in an ordinarily slotted position in their hierarchy and in regular/appropriate scale of pay. Will there be an option retained by the employers to extend the Trainee period in peculiar circumstances. That being so a mention the facts/contingencies in the 'Offer of Trainee' is also may be made appropriately. To the contrary, it is also in practice to keep or place them in a panel of such completed trainees with a view to be absorbed in the vacancies arising in the near future, otherwise they also may be relieved after completion with a rider that they have to await intimation for absorption in due course. In the regularisation traight away scenario there is a question of 'counting' Trainee service period will be 'considered' for reckoning the total service rendered by the candidate and for granting increment/refixation.
Secondly, there is also a practice of a role of a 'bond' to restrict the candidate quitting forgoing the option of regularisation for their own aspirations. This is also to be addressed.
Third, there is a concept of "Probation period". The applicability of this to be spelt out.
Fourth, applicability of 'Trainee' conditions to 'internal candidates' who otherwise are satisfying EQ norms but recruited for posts lower in the ranks due to some reasons.
As EPF & ESI, health & accident insurance including 'bonus', leave etc are statutory employee benefits suitable clauses be included in the 'offer' letter.
From India, Bangalore
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I may add to what have been stated by others. From my experience I may say, once the compulsory 'Trainee' period is successfully completed, say after one year or so, the candidates eagerly await regularisation by confirmation in their regular stream in an ordinarily slotted position in their hierarchy and in regular/appropriate scale of pay. Will there be an option retained by the employers to extend the Trainee period in peculiar circumstances. That being so a mention the facts/contingencies in the 'Offer of Trainee' is also may be made appropriately. To the contrary, it is also in practice to keep or place them in a panel of such completed trainees with a view to be absorbed in the vacancies arising in the near future, otherwise they also may be relieved after completion with a rider that they have to await intimation for absorption in due course. In the regularisation traight away scenario there is a question of 'counting' Trainee service period will be 'considered' for reckoning the total service rendered by the candidate and for granting increment/refixation.
Secondly, there is also a practice of a role of a 'bond' to restrict the candidate quitting forgoing the option of regularisation for their own aspirations. This is also to be addressed.
Third, there is a concept of "Probation period". The applicability of this to be spelt out.
Fourth, applicability of 'Trainee' conditions to 'internal candidates' who otherwise are satisfying EQ norms but recruited for posts lower in the ranks due to some reasons.
As EPF & ESI, health & accident insurance including 'bonus', leave etc are statutory employee benefits suitable clauses be included in the 'offer' letter.
From India, Bangalore
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(Fact Checked)-Your points on trainee regularization, probation period, and employee benefits are accurate and insightful. Please consider the Apprentices Act, 1961 for legal guidance. (1 Acknowledge point)
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Dear Poster,
The salary you proposed for the Graduates (BE, B.Tech) trainee employees considered to be unfair.
1. The BE and BTech are going to complete during the current session have been selected under campus the minimum cap remains @ 4 Lakh per annum.
2. The companies SAIL,Tata Steel, L&T, Jspl, NALCO, and other companies intake the BE and BTech @50K+ per month as Management trainees.
3. The price tag is mentioned in your post @ ₹ 12000 PM is even less than the minimum wages notified by the Govt. for High Skilled Category.
4. The minimum wages notified by the Central Government is as per following::
A. Unskilled workers - Rs. 20,358 PM
B. Semi-skilled workers - Rs. 22,568 PM
C. Skilled workers - Rs. 24,804 PM
D. Highly skilled workers - Rs. 26,910 PM
5.Thus BE/BTech are fall under Highly Skilled Workers and as per minimum wages it comes Rs. 26,910 PM, ₹27000, if rounded up.
6. The wages difference would stand at less ₹2000/-, if comes to State minimum wages. On flat rate mo way the salary should not be less than ₹25000PM.
The rate you proposed for BE or BTech is not good and one can get an Engineer @ cost of unskilled labour is something funny and misery.
You may face legal consequences for not obliging payment of Minimum Wages.
From India, Mumbai
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The salary you proposed for the Graduates (BE, B.Tech) trainee employees considered to be unfair.
1. The BE and BTech are going to complete during the current session have been selected under campus the minimum cap remains @ 4 Lakh per annum.
2. The companies SAIL,Tata Steel, L&T, Jspl, NALCO, and other companies intake the BE and BTech @50K+ per month as Management trainees.
3. The price tag is mentioned in your post @ ₹ 12000 PM is even less than the minimum wages notified by the Govt. for High Skilled Category.
4. The minimum wages notified by the Central Government is as per following::
A. Unskilled workers - Rs. 20,358 PM
B. Semi-skilled workers - Rs. 22,568 PM
C. Skilled workers - Rs. 24,804 PM
D. Highly skilled workers - Rs. 26,910 PM
5.Thus BE/BTech are fall under Highly Skilled Workers and as per minimum wages it comes Rs. 26,910 PM, ₹27000, if rounded up.
6. The wages difference would stand at less ₹2000/-, if comes to State minimum wages. On flat rate mo way the salary should not be less than ₹25000PM.
The rate you proposed for BE or BTech is not good and one can get an Engineer @ cost of unskilled labour is something funny and misery.
You may face legal consequences for not obliging payment of Minimum Wages.
From India, Mumbai
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(Fact Checked)-Your information is accurate. The proposed salary is indeed below the minimum wage for highly skilled workers in India. It's crucial to comply with these laws to avoid legal issues. Keep up the good work! (1 Acknowledge point)
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Creating a Competitive Salary Structure.doc
INDIA SALARY HANDBOOK 2008 - 09.pdf
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(Fact Checked)-Your suggestion to cover statutory requirements like PF, ESIC from day 1 is accurate as per the EPF Act, 1952 and ESIC Act, 1948. However, for apprentices, they are exempted from PF and ESIC during their training period as per Apprentices Act, 1961. (1 Acknowledge point)