Different salary structures or salary components are possible in the same company? Please reply as per legally for office and factories also.
From India, Howrah
1From India, Howrah
I think that the actual answer intended to be sought by the poster cannot be culled out from the question.
When there is difference in the grades, cadre and nature of job positions of employees in the same organization, differences are bound to arise in salary structure as well as the components pertaining to the specific nature of duties performed.
But, there cannot be different scales of salary for the same class of employees when they are employed in the same or similar nature of works.
From India, Salem
When there is difference in the grades, cadre and nature of job positions of employees in the same organization, differences are bound to arise in salary structure as well as the components pertaining to the specific nature of duties performed.
But, there cannot be different scales of salary for the same class of employees when they are employed in the same or similar nature of works.
From India, Salem
Dear Tridibesh,
Answer to your question is yes. There is no law which can stop any organization to do so, But to frame remuneration structure at West Bengal you have to consider HRA as per State House rent allowance Act minimum 5% of Basic & DA.
For any remuneration structure sitting today it is essential to check Minimum Wages, PF Gross as per Supreme Court Guide line which in future will be Basic and DA as per definition of Wage under wage Code etc. both for office and factories. The other things should be kept in mind for higher level employees ITAX impact and administrative hassels to process payroll etc.
Thanks & Regards,
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Answer to your question is yes. There is no law which can stop any organization to do so, But to frame remuneration structure at West Bengal you have to consider HRA as per State House rent allowance Act minimum 5% of Basic & DA.
For any remuneration structure sitting today it is essential to check Minimum Wages, PF Gross as per Supreme Court Guide line which in future will be Basic and DA as per definition of Wage under wage Code etc. both for office and factories. The other things should be kept in mind for higher level employees ITAX impact and administrative hassels to process payroll etc.
Thanks & Regards,
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Salary structure can differ according to the categories of employment.Nature of assignments, position in organisation and so on.
What matters is salary structure should include compliances and manadatory heads as applicable and governed by government authorities or state notifications.
Also it is omportant to consider the income tax applicability to ensure right structure formation.
From India, Vadodara
What matters is salary structure should include compliances and manadatory heads as applicable and governed by government authorities or state notifications.
Also it is omportant to consider the income tax applicability to ensure right structure formation.
From India, Vadodara
Dear colleague,
If you are referring to different salary "structure " to mean various components of the salary then depending on the categories of employees- workers, supervisory, managerial and top level of management, the structure, quantum and components will differ in the same organisation.
But in matters of salary structure, it is determined by taking into account the following:
* Minimum wages if applicable,
* Market demand s and forces for certain skill levels
* Existence of strong Union and collective bargaining history.
* Milestone judgements of apex courts in matters of employment conditions in general and wage determination in particular.
* Category and level of employees- Here employees doing same or similar skill level of jobs are clubbed together to develop salary structure by following principle of equity and fairness. While components of salary will remain uniform as per the grouped categories, the salary differential between two categories or two individuals in the same category will differ with the performance, education, experience, level in the hierarchy, range of responsibilities and seniority.
Such difference in salary structure do exist and are justifiable in any organisation.
But it will be unjust if employees are given individual specific salary components if their skill level is the same. For instance, in an unskilled category, if one worker gets basic and DA and other one gets only basic, that kind of difference can create havoc.
Hope, your query is properly understood and answered .
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
If you are referring to different salary "structure " to mean various components of the salary then depending on the categories of employees- workers, supervisory, managerial and top level of management, the structure, quantum and components will differ in the same organisation.
But in matters of salary structure, it is determined by taking into account the following:
* Minimum wages if applicable,
* Market demand s and forces for certain skill levels
* Existence of strong Union and collective bargaining history.
* Milestone judgements of apex courts in matters of employment conditions in general and wage determination in particular.
* Category and level of employees- Here employees doing same or similar skill level of jobs are clubbed together to develop salary structure by following principle of equity and fairness. While components of salary will remain uniform as per the grouped categories, the salary differential between two categories or two individuals in the same category will differ with the performance, education, experience, level in the hierarchy, range of responsibilities and seniority.
Such difference in salary structure do exist and are justifiable in any organisation.
But it will be unjust if employees are given individual specific salary components if their skill level is the same. For instance, in an unskilled category, if one worker gets basic and DA and other one gets only basic, that kind of difference can create havoc.
Hope, your query is properly understood and answered .
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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