Dear Respected Seniors,
greetings!
I am working in a NGO in Uttar Pradesh at the post of Manager HR but all the salary related calculation are taken care by a CA till November our salary structure was like as written below:
basic 40% of gross
DA 20%of basic
HRA 40 % of Basic+DA
trasport allowance 800
Others rest adjusted amount if any
so my question is after the updation in minimum daily wages as per UP ACT what changes should we incorporate and how this change will affect the previous salary structure.
kindly help me out
regards
From India, Delhi
greetings!
I am working in a NGO in Uttar Pradesh at the post of Manager HR but all the salary related calculation are taken care by a CA till November our salary structure was like as written below:
basic 40% of gross
DA 20%of basic
HRA 40 % of Basic+DA
trasport allowance 800
Others rest adjusted amount if any
so my question is after the updation in minimum daily wages as per UP ACT what changes should we incorporate and how this change will affect the previous salary structure.
kindly help me out
regards
From India, Delhi
Follow these steps:
1. Prepare a salary structure sheet, in case you do not have. Sheet should contain all designations available in your company.. grade wise...
Example of salary structure sheet:
Grade 1= Executive 1- salary 5000 (inclusive of HRA/basic/conveyance allowance etc), Executive 2- salary 6000 (inclusive of HRA/basic/conveyance allowance etc)
Grade 2= Senior Executive 1- Salary 7000 (inclusive of HRA/basic/conveyance allowance etc), Senior Executive 2- Salary 8000 (inclusive of HRA/basic/conveyance allowance etc)
2. check the percentage increase in minimum wage that has taken place.
Now e. g. if the minimum wage has increased 3%, incorporate that change in your salary structure sheet. . i. e. increase 3% salary in all designations and accordingly basic/HRA/Transport Allowance etc. can be revised.
This process is required to be done so as to keep the salary structure of the company updated. You can limit this change for senior positions since they usually get higher salary. If you incorporate this change in their salary structure also, it'll increase the cost of your company.
This must be done specifically for those working at lower grades so that they do not fail to get minimum wage as prescribed by the state govt.
From India, Delhi
231. Prepare a salary structure sheet, in case you do not have. Sheet should contain all designations available in your company.. grade wise...
Example of salary structure sheet:
Grade 1= Executive 1- salary 5000 (inclusive of HRA/basic/conveyance allowance etc), Executive 2- salary 6000 (inclusive of HRA/basic/conveyance allowance etc)
Grade 2= Senior Executive 1- Salary 7000 (inclusive of HRA/basic/conveyance allowance etc), Senior Executive 2- Salary 8000 (inclusive of HRA/basic/conveyance allowance etc)
2. check the percentage increase in minimum wage that has taken place.
Now e. g. if the minimum wage has increased 3%, incorporate that change in your salary structure sheet. . i. e. increase 3% salary in all designations and accordingly basic/HRA/Transport Allowance etc. can be revised.
This process is required to be done so as to keep the salary structure of the company updated. You can limit this change for senior positions since they usually get higher salary. If you incorporate this change in their salary structure also, it'll increase the cost of your company.
This must be done specifically for those working at lower grades so that they do not fail to get minimum wage as prescribed by the state govt.
From India, Delhi
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Creating a Competitive Salary Structure.doc
Salary Structure.zip