Hi, Please can you help on how the salary calculation would change as per the new wage code?
An example of the present structure given below
Gross salary - 30000 ( basic - 13500,hra - 6600,conveyance 9900)
Additional benefits
Approx sales incentive 10000-15000
OT - 2000(not there in all months)
From India, Malappuram
An example of the present structure given below
Gross salary - 30000 ( basic - 13500,hra - 6600,conveyance 9900)
Additional benefits
Approx sales incentive 10000-15000
OT - 2000(not there in all months)
From India, Malappuram
Basic - 13500/- per month, HRA - 6600/- per month, Conveyance - 9900/- per month, Sales incentive - 10000/- per month, OT- 2000/- per month ( not regular), PF Employer - 12% of 13500 = 1620/- per month, Statutory Bonus - say 12,000/- minimum wages @ 8.33% - 1000/- per month. Now the Total remuneration excluding OT is 42,620/- per month. 50% of 42620/- = 21310/- will be basic per month. 21310/- will be other allowances including Employer's portion of PF & Statutory bonus - to be distributed accordingly minimizing other allowances.
In case of OT & Sales incentive ( As both are variable ) as and when appear ( Sales incentive more than 10,000/- per month ) , the same will be proportionately divided in to 60 : 40 and 60% may be add back to basic in the particular month & 40% to other allowances ( OT, Sales incentive) to maintain 50:50 condition of the total remuneration.
In the above calculation Basic has crossed 21,000/- per month - may not be eligible for Statutory Bonus and the calculation needs to be changed accordingly.
From India, New Delhi
335In case of OT & Sales incentive ( As both are variable ) as and when appear ( Sales incentive more than 10,000/- per month ) , the same will be proportionately divided in to 60 : 40 and 60% may be add back to basic in the particular month & 40% to other allowances ( OT, Sales incentive) to maintain 50:50 condition of the total remuneration.
In the above calculation Basic has crossed 21,000/- per month - may not be eligible for Statutory Bonus and the calculation needs to be changed accordingly.
From India, New Delhi
We use an hr software for salary processing..so in that case,how would we be able to set this as fixed formula or % on components?
From India, Malappuram
From India, Malappuram
Please talk to your software providing agency and explain them the need. If law of the land change. there is no other alternate other than to redesign your software for salary processing.
Most important thing is to restructure your salary structure for all employees asap and then talk to the software serving agency. If it is in house develop software, talk to the concern IT person.
It will be a big project for all Organizations and need to address properly.
From India, New Delhi
Most important thing is to restructure your salary structure for all employees asap and then talk to the software serving agency. If it is in house develop software, talk to the concern IT person.
It will be a big project for all Organizations and need to address properly.
From India, New Delhi
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