Suppose there are four employees—A, B, C, and D—each with the following gross salaries:
Employee A: ₹15,001
Employee B: ₹16,000
Employee C: ₹17,000
Employee D: ₹30,000
Each employee’s salary structure is proposed as follows:
Basic + DA: ₹15,001 for all employees (A, B, C, D)
HRA: ₹0 for Employee A, ₹999 for Employee B, ₹1999 for Employee C, and ₹14999 for Employee D
Given that all employees are new and there are no deductions for Provident Fund (PF), and since Employee State Insurance (ESI) is calculated based on the gross salary, there are no compliance issues regarding statutory deductions.
Questions:
1. Can each employee have a different HRA amount while having the same Basic + DA of ₹15,001?
2. Is it possible for all employees to have the same Basic + DA of ₹15,001 while their gross salaries vary due to different HRA amounts?
3. Can this salary structure be applied to other new joining employees as well?
4. Are there any potential issues with this salary distribution structure?
5. Can someone explain how to prepare a salary sheet for this structure, as I’m unfamiliar with the process? Is this ok -
The salary structure includes the Actual Basic Wage (including DA), Actual HRA, Actual Gross Wages, No. of Days Worked, Wages Earned (including DA), HRA Earned, Total Earned, PF, ESI, Net Payable, and a Signature for verification.
6.Can salary calculation be shown in such a way that the gross salary is prorated based on the number of days in the month, excluding Sundays? For example, for September (30 days), the calculation would be: Gross Salary divided by 25 (30 days minus 5 Sundays) to get the per-day salary. Is this method valid and compliant?
Employee A: ₹15,001
Employee B: ₹16,000
Employee C: ₹17,000
Employee D: ₹30,000
Each employee’s salary structure is proposed as follows:
Basic + DA: ₹15,001 for all employees (A, B, C, D)
HRA: ₹0 for Employee A, ₹999 for Employee B, ₹1999 for Employee C, and ₹14999 for Employee D
Given that all employees are new and there are no deductions for Provident Fund (PF), and since Employee State Insurance (ESI) is calculated based on the gross salary, there are no compliance issues regarding statutory deductions.
Questions:
1. Can each employee have a different HRA amount while having the same Basic + DA of ₹15,001?
2. Is it possible for all employees to have the same Basic + DA of ₹15,001 while their gross salaries vary due to different HRA amounts?
3. Can this salary structure be applied to other new joining employees as well?
4. Are there any potential issues with this salary distribution structure?
5. Can someone explain how to prepare a salary sheet for this structure, as I’m unfamiliar with the process? Is this ok -
The salary structure includes the Actual Basic Wage (including DA), Actual HRA, Actual Gross Wages, No. of Days Worked, Wages Earned (including DA), HRA Earned, Total Earned, PF, ESI, Net Payable, and a Signature for verification.
6.Can salary calculation be shown in such a way that the gross salary is prorated based on the number of days in the month, excluding Sundays? For example, for September (30 days), the calculation would be: Gross Salary divided by 25 (30 days minus 5 Sundays) to get the per-day salary. Is this method valid and compliant?
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Creating a Competitive Salary Structure.doc
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