Hi
I work a retail company in vizag. REcently my company implemented the minimum wages act and increased the salary upto 20%. But the employees are complaining that their take home is reduced drastically that is the increase in their salaries is marginal.
As per minimum wages act
basic 4102
da 538
other allowances 332
gross 4972
net after deducting pf, pt, esi is 4393
Is there any way that i can increase the employees net salary. Can i make changes in his baSIC Please reply at the earliest
thanks
vyjayanthi
From India, Visakhapatnam
I work a retail company in vizag. REcently my company implemented the minimum wages act and increased the salary upto 20%. But the employees are complaining that their take home is reduced drastically that is the increase in their salaries is marginal.
As per minimum wages act
basic 4102
da 538
other allowances 332
gross 4972
net after deducting pf, pt, esi is 4393
Is there any way that i can increase the employees net salary. Can i make changes in his baSIC Please reply at the earliest
thanks
vyjayanthi
From India, Visakhapatnam
Hi
Once Basic is decided , you can not reduced the basic, you can increase it though. If you have only the mentioned componemts, then to increase the net salary you can add amount in other allowance, which will affect only ESIC and PT. Looking at your current structure no scope to increase the net salary.
Regards,
Harshad
From India, Mumbai
25Once Basic is decided , you can not reduced the basic, you can increase it though. If you have only the mentioned componemts, then to increase the net salary you can add amount in other allowance, which will affect only ESIC and PT. Looking at your current structure no scope to increase the net salary.
Regards,
Harshad
From India, Mumbai
As Mr.Harshad told you can add to other allowances there is no point in adding this,if you have considered basic as less atleast you will be having a hope in reducing PF deductions.Net pay can go high in this case.
From India, Bangalore
From India, Bangalore
Dear vyjayanthi,
After looking your matter its seems to be difficult to manage the salary structure of your workers and may not tell your employer to increases there salary at the time.
for this you have to communicate your employees for the benefit of ESIC and PF . May be they are agreed for the same .
and if you really want to pay Rs 4972 instead of 4393 you may add a an incentive scheme on the basis of your targeted sales so at the mean time your employee get motivated and your sales increases. and the get Rs.500 as an incentive
From India, Pune
After looking your matter its seems to be difficult to manage the salary structure of your workers and may not tell your employer to increases there salary at the time.
for this you have to communicate your employees for the benefit of ESIC and PF . May be they are agreed for the same .
and if you really want to pay Rs 4972 instead of 4393 you may add a an incentive scheme on the basis of your targeted sales so at the mean time your employee get motivated and your sales increases. and the get Rs.500 as an incentive
From India, Pune
Dear Vyjayanti,
As per my knowledge, if you increase basic, the take home also can be increased. & also tax deduction also will be less..
or else you can add the increased amount in other allowances. where you can show these are reimbursements to exepmt from Income tax by providing the bills.
Regards,
Eshwar Reddy
9704799908
Vizag.
From India, Bangalore
As per my knowledge, if you increase basic, the take home also can be increased. & also tax deduction also will be less..
or else you can add the increased amount in other allowances. where you can show these are reimbursements to exepmt from Income tax by providing the bills.
Regards,
Eshwar Reddy
9704799908
Vizag.
From India, Bangalore
Your Basic and DA percentage is 13%.
1. Revisit your minimum wages slabs and find out exact amount of minimum wages you have pay.
2. IF you have uniformed staff, other allowances can be names as washing allowance, thus escaping ESI ambit (very very meagre increase) - This will also excluded in PT.
Not but not least - your salary calculations are wrong - You are charging PF and ESI only on Basic where in DA and Other allowances are not covered. This system is not legally valid. Actual take home will be very less compared to what you mentioned.
DA is included in PF ambit
Other allowances - if not mentioned exclusively and if not found in ESI exclusion list are included in ESI Ambit
From India, Madras
1. Revisit your minimum wages slabs and find out exact amount of minimum wages you have pay.
2. IF you have uniformed staff, other allowances can be names as washing allowance, thus escaping ESI ambit (very very meagre increase) - This will also excluded in PT.
Not but not least - your salary calculations are wrong - You are charging PF and ESI only on Basic where in DA and Other allowances are not covered. This system is not legally valid. Actual take home will be very less compared to what you mentioned.
DA is included in PF ambit
Other allowances - if not mentioned exclusively and if not found in ESI exclusion list are included in ESI Ambit
From India, Madras
Hi,
It will not be possible to increase take home salary without any financial liaibily. If your employer can take additional liability, following options are available:
* Introduce incentive scheme.
* Any shortage of staff may be met by giving OT.
* Introduce welfare facilities like subsidised canteen, education fee reimbursement to children of employee
From India, Delhi
It will not be possible to increase take home salary without any financial liaibily. If your employer can take additional liability, following options are available:
* Introduce incentive scheme.
* Any shortage of staff may be met by giving OT.
* Introduce welfare facilities like subsidised canteen, education fee reimbursement to children of employee
From India, Delhi
I think the object of min wage act is to meet the minimum wage component that is basic, DA and it includes HRA also .
Example :
Basic : Rs.1700
HRA : Rs.2000
DA : Rs. 538
Take home pay after pf, ESI is (269 + 74 ) 3895/- . Is it meeting
minimum wage law ??
HR friends please clarify .
Dakshina murty
From India, Hyderabad
Example :
Basic : Rs.1700
HRA : Rs.2000
DA : Rs. 538
Take home pay after pf, ESI is (269 + 74 ) 3895/- . Is it meeting
minimum wage law ??
HR friends please clarify .
Dakshina murty
From India, Hyderabad
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Minimum Wage Increase w.e.f. 01.07.2021.pdf