Dear all,
If an organisation has decided to induce a % "Salary Cut" with the consent of the employees for a temporary period, then how the same can be reflected on the salary slips, without changing the basic salary/ without effecting the retirals. Also at the same time we need to ensure that since the employee is already sacrificing his salary, the employee does not have to pay extra taxes due to the loss in the salary. I would require your views on how this can be deducted, under what heads and how the the employee doesn't pay full taxes since he is suffering a loss in the salary due to temporary (eg: for 3 months) loss in salary.
Since this is a sensitive issue and related to employee financials, would require your honest suggestions.
Best Regards
Puneet
From India
5If an organisation has decided to induce a % "Salary Cut" with the consent of the employees for a temporary period, then how the same can be reflected on the salary slips, without changing the basic salary/ without effecting the retirals. Also at the same time we need to ensure that since the employee is already sacrificing his salary, the employee does not have to pay extra taxes due to the loss in the salary. I would require your views on how this can be deducted, under what heads and how the the employee doesn't pay full taxes since he is suffering a loss in the salary due to temporary (eg: for 3 months) loss in salary.
Since this is a sensitive issue and related to employee financials, would require your honest suggestions.
Best Regards
Puneet
From India
Dear Member
You will have to share the salary structure of the company so that the fellow members can suggest you some way out. For example I would suggest a reduction in HRA but if the HRA is linked to Basic then the suggestion would not work. For members to give a suggestion they need to know the whole situation.
Regards
Preetam Deshpande
From India, Mumbai
You will have to share the salary structure of the company so that the fellow members can suggest you some way out. For example I would suggest a reduction in HRA but if the HRA is linked to Basic then the suggestion would not work. For members to give a suggestion they need to know the whole situation.
Regards
Preetam Deshpande
From India, Mumbai
Hi Puneet:
1. Reduce the allowances, as this will keep basic and retirals intact.
2. Tax is computed on income in hand and the relevant tax brackets/slabs, so no question of undue taxes.
Hope this answers your queries.
Regards,
Kalpana Iyer
From India, Pune
1. Reduce the allowances, as this will keep basic and retirals intact.
2. Tax is computed on income in hand and the relevant tax brackets/slabs, so no question of undue taxes.
Hope this answers your queries.
Regards,
Kalpana Iyer
From India, Pune
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Letter to employees for salary cut.docx
SALARY SHEET CALCULATION.xls