Hi Seniors,
I have joined newly as a HR for a pvt ltd company in hyderabad which works for US IT recruitments. We will pay our employees their INCENTIVES every month, till now company not used to provide payslip (employees also not asked). Goingforward, want to implement issuing payslips every month.
Coming to my question,
So should we add those incentives showing Incentive' s column or directly add into their gross salary?? (As per my knowledge, I believe we should show them under incentive column, bcz it will effect on company CTC too)
Kindly correct me on this regard and really appreciate all inputs.
Thanks in Advance
RAJ
From India
I have joined newly as a HR for a pvt ltd company in hyderabad which works for US IT recruitments. We will pay our employees their INCENTIVES every month, till now company not used to provide payslip (employees also not asked). Goingforward, want to implement issuing payslips every month.
Coming to my question,
So should we add those incentives showing Incentive' s column or directly add into their gross salary?? (As per my knowledge, I believe we should show them under incentive column, bcz it will effect on company CTC too)
Kindly correct me on this regard and really appreciate all inputs.
Thanks in Advance
RAJ
From India
Hi,
1. Incentive is the earning of the employee and its not related to CTC.
2. Incentive is variable component not fixed component so show that incentive part in total earnings column as variable part.
3. Incentive is not fixed component for the each month it depends on work performance of employee.
From India, Mumbai
4271. Incentive is the earning of the employee and its not related to CTC.
2. Incentive is variable component not fixed component so show that incentive part in total earnings column as variable part.
3. Incentive is not fixed component for the each month it depends on work performance of employee.
From India, Mumbai
Hi ravi5554/ Aditya,
I really appreciate your response and thank you so much for clarifying my doubt.
Just to double on this scenario.
We have the payslip as following
EARNINGS
Basic pay
Medical Allowance
Allowance
CCA
HRA
Conveyance
INCENTIVES (or should I mention as variable pay or some suggestions)
So, the INCENTIVES should be added right.
Please correct me .
Thanks in Advance
RAJ
From India
I really appreciate your response and thank you so much for clarifying my doubt.
Just to double on this scenario.
We have the payslip as following
EARNINGS
Basic pay
Medical Allowance
Allowance
CCA
HRA
Conveyance
INCENTIVES (or should I mention as variable pay or some suggestions)
So, the INCENTIVES should be added right.
Please correct me .
Thanks in Advance
RAJ
From India
Hi,
Add that incentive as variable part in salary slip, just think incentive is not fixed component,if any employee will not reach the target then how he will be eligible for the incentive so make incentive column and in which month he is eligible then show that part in salary slip.
From India, Mumbai
Add that incentive as variable part in salary slip, just think incentive is not fixed component,if any employee will not reach the target then how he will be eligible for the incentive so make incentive column and in which month he is eligible then show that part in salary slip.
From India, Mumbai
Hi Seniors,
I have joined as a HR for a pvt ltd company, We will pay our employees their INCENTIVES every month So should we add those incentives showing Incentive' s column or directly add into their gross salary??
As I know, we should show them under incentive column, bcz it will effect on company CTC.
I want to know if we show incentive on salary slip then do we need to deduct ESIC from incentive.???
or it will affect to PF ESIC or any other particular in pay slip.
or if i mention incentive just out side of the slip separately.
Kindly correct me on this regard and really appreciate all inputs.
THANK IN ADVANCE ...
From India, Nagpur
I have joined as a HR for a pvt ltd company, We will pay our employees their INCENTIVES every month So should we add those incentives showing Incentive' s column or directly add into their gross salary??
As I know, we should show them under incentive column, bcz it will effect on company CTC.
I want to know if we show incentive on salary slip then do we need to deduct ESIC from incentive.???
or it will affect to PF ESIC or any other particular in pay slip.
or if i mention incentive just out side of the slip separately.
Kindly correct me on this regard and really appreciate all inputs.
THANK IN ADVANCE ...
From India, Nagpur
Dear Hemant,
If incentive is paid in every month ( eg- production incentive, attendance incentive, safety incentive etc.) it is part of the monthly gross though it is variable pay. VDA is paid by many Indian Organizations which is also variable and the formula varies from organization to organization. It may be monthly review, quarterly review, 6 monthly review or yearly review. It may be % basis or per point of index neutralization and a part of monthly gross. There are organizations where HRA is part of Basic & DA will be variable with the change of VDA . Even there are House Rent Allowance Act in some States - WB, Maharashtra etc. where HRA is % of Basic & DA. Therefore, there is no connection of variable payment vs part of monthly gross.
As far as ESI is concerned any payment which is made at an interval of not more than 2 months is to be considered as coverage and deduction of ESI whether it is variable or not.
It is obviously part of CTC irrespective of payment term.
Thanks & Regds,
S K Bandyopadhyay( West Bengal)
USD HR Solutions
From India, New Delhi
If incentive is paid in every month ( eg- production incentive, attendance incentive, safety incentive etc.) it is part of the monthly gross though it is variable pay. VDA is paid by many Indian Organizations which is also variable and the formula varies from organization to organization. It may be monthly review, quarterly review, 6 monthly review or yearly review. It may be % basis or per point of index neutralization and a part of monthly gross. There are organizations where HRA is part of Basic & DA will be variable with the change of VDA . Even there are House Rent Allowance Act in some States - WB, Maharashtra etc. where HRA is % of Basic & DA. Therefore, there is no connection of variable payment vs part of monthly gross.
As far as ESI is concerned any payment which is made at an interval of not more than 2 months is to be considered as coverage and deduction of ESI whether it is variable or not.
It is obviously part of CTC irrespective of payment term.
Thanks & Regds,
S K Bandyopadhyay( West Bengal)
USD HR Solutions
From India, New Delhi
But I have one ques, actually sir its sales incentive and it is paid by every month as per the given target Achieved by the employee. Employee asking me to add incentive in salary slip. sir I have made two different type of salary slip and attached it for ur reference. I would like to request you please go through it and let me know which ond is correct as per maharashtra govt norms ...
Thank you..
From India, Nagpur
Thank you..
From India, Nagpur
Hi all please give me solution with payroll amunt or directly with gross salary
From India, New Delhi
From India, New Delhi
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