Incase a employee joins around the 25 Jan 2016 and on 31st Jan 2016. when we pay his salary do we only pay his basic and DA and not the HR for 7 days. Is their a law or act regarding this.
From India, Jalalpur
From India, Jalalpur
Dear Sameer,
Salary and its components are payable from the first day of work. Please do not segregate it.
How does your Payroll Cycle work? Ideally most of the firms run it till 15 or maximum 21st of a month . Anyone joining beyond that date, gets paid next month with the sum total of days worked.
Suppose your payroll cycle closes by 15th of every month. Hence the employee joining on 25th of February, might not get paid on 1st of March. His total salary for the month of March and 3 days of February will be credited to him on 1st April 2016.
Hope this answers your question. Looking forward to hear from you!
From India, Mumbai
1859Salary and its components are payable from the first day of work. Please do not segregate it.
How does your Payroll Cycle work? Ideally most of the firms run it till 15 or maximum 21st of a month . Anyone joining beyond that date, gets paid next month with the sum total of days worked.
Suppose your payroll cycle closes by 15th of every month. Hence the employee joining on 25th of February, might not get paid on 1st of March. His total salary for the month of March and 3 days of February will be credited to him on 1st April 2016.
Hope this answers your question. Looking forward to hear from you!
From India, Mumbai
Hello Nobomita,
Thank you so much for your response. I really appreciate it. I have joined a small organization few days back and we pay employees on the 7th of every month, but our monthly calculation is till the end of the month. In one of our employee case who joined on 25 Jan 2016, the amount paid to him is only basic and DA on the 7th Feb 2016 and we did not pay him for HRA and other components which were part of his salary. The system has been designed such that employee would get paid only for these two components for the 7days and the difference would be paid next month. Is this system correct and legally correct, since the employee is disputing and asking us to pay for the balance. Hope I am able to communicate my doubt and question.
From India, Jalalpur
Thank you so much for your response. I really appreciate it. I have joined a small organization few days back and we pay employees on the 7th of every month, but our monthly calculation is till the end of the month. In one of our employee case who joined on 25 Jan 2016, the amount paid to him is only basic and DA on the 7th Feb 2016 and we did not pay him for HRA and other components which were part of his salary. The system has been designed such that employee would get paid only for these two components for the 7days and the difference would be paid next month. Is this system correct and legally correct, since the employee is disputing and asking us to pay for the balance. Hope I am able to communicate my doubt and question.
From India, Jalalpur
Dear Sameer,
There is no law that allows you to hold back components from the salary unless its the Performance Based Incentive.
The employee is contesting for the right reason. The balance needs to be cleared out. Do you have any accountant in the firm ? Please take his advice on disbursing this.
From India, Mumbai
There is no law that allows you to hold back components from the salary unless its the Performance Based Incentive.
The employee is contesting for the right reason. The balance needs to be cleared out. Do you have any accountant in the firm ? Please take his advice on disbursing this.
From India, Mumbai
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