Dear All
At present we are following the below said break up.
1.Basic
2.HRA,
3.TA,
4.CCA,
5.FA,
6.Medical Allowance,
7.Special Allowance,
8.LTA.
The company has revised its salary. I would like to change the salary break up which is more beneficiary to the employee. Kindly advice me on what are the other factors that I can add or remove from the present.
From India, Coimbatore
2At present we are following the below said break up.
1.Basic
2.HRA,
3.TA,
4.CCA,
5.FA,
6.Medical Allowance,
7.Special Allowance,
8.LTA.
The company has revised its salary. I would like to change the salary break up which is more beneficiary to the employee. Kindly advice me on what are the other factors that I can add or remove from the present.
From India, Coimbatore
Dear Kavitha,
We are on the same lines as I have also restructured our salary structure recently.
We have removed Medical All and TA from the list. Instead of TA u can offer reimbursement on actuals and can put a limit on the travel amount acc to the job levels. and for Medical All., most of the ppl give fake bills to recover the amt, so instead of that u can go for a mediclaim policy which will cost only an annual premium per employee in an year.
Hope this might be of some help to u..
Regards,
Parul
From India, Delhi
We are on the same lines as I have also restructured our salary structure recently.
We have removed Medical All and TA from the list. Instead of TA u can offer reimbursement on actuals and can put a limit on the travel amount acc to the job levels. and for Medical All., most of the ppl give fake bills to recover the amt, so instead of that u can go for a mediclaim policy which will cost only an annual premium per employee in an year.
Hope this might be of some help to u..
Regards,
Parul
From India, Delhi
Dear Parul Thanks for your response. What are the chances if increasing the Food allowance and adding the Unifrom Allowance. Here the employee’s will be benefited. What do you say. Kavitha
From India, Coimbatore
From India, Coimbatore
Dear Kavitha,
It really depends on whether u want to increase the co. cost or keep it constant. If the co. is actually looking out for increasing employee slaries, you might rather go for slab wise structure for such allowances. the higher the slab , the higher the allowance.
You might also add a new category called "Grade Allowance". this wud contain the allowance that an employee wud get whenever he is promoted one step up the ladder.
Regards,
Parul
From India, Delhi
It really depends on whether u want to increase the co. cost or keep it constant. If the co. is actually looking out for increasing employee slaries, you might rather go for slab wise structure for such allowances. the higher the slab , the higher the allowance.
You might also add a new category called "Grade Allowance". this wud contain the allowance that an employee wud get whenever he is promoted one step up the ladder.
Regards,
Parul
From India, Delhi
Dear Parul
Actually we have increased the salary for the employees with effect from April 07. That is the reason why I am planning for a revision in the salary break up.
Likewise what is Grade Allowance. This is new to me. On what basis is the calculation done and how will the employees be benifited. Any other additions to Grade allowance.
Thanks and regards
Kavitha S
From India, Coimbatore
Actually we have increased the salary for the employees with effect from April 07. That is the reason why I am planning for a revision in the salary break up.
Likewise what is Grade Allowance. This is new to me. On what basis is the calculation done and how will the employees be benifited. Any other additions to Grade allowance.
Thanks and regards
Kavitha S
From India, Coimbatore
In that case, u may increase the other heads amt.
Grade allowance is not very prevelant, but company specific. we are planning to consider that as 1 of the componenets of our structure. u might or might not consider that. the slab will also be, likewise, company specific. u may fix up a range for the lowest grade like for moving from Exec to sr exec or from agm to gm level. the idea is to make the employess feel the worth of that position.
From India, Delhi
Grade allowance is not very prevelant, but company specific. we are planning to consider that as 1 of the componenets of our structure. u might or might not consider that. the slab will also be, likewise, company specific. u may fix up a range for the lowest grade like for moving from Exec to sr exec or from agm to gm level. the idea is to make the employess feel the worth of that position.
From India, Delhi
Hi Kavithas,
TA - Travel allowance- it is taxable..avoid it if you can..instead use Conveyance allowance of Rs 800 per month..
CCA, FA- ( what is FA?) & Special allowance is all Taxable..though different heads but what is the use?..
Instead provide CEA - Children Education Allowance - tax free allowance with the limit of Rs 100 per child per month upto two children.
Medical Allowance - it is taxable unless you show it as reimbursement..payable on the production of legible & genuine medical bills. Max - Rs 15,000/- per annum.
Besides, you can consider Sodexho Meal Coupons if it is available in your city ..the amount can be Rs 1500/- per month.
For senior management - you can consider a car lease where arms length transcation is maintained whereby the cheque is issued in name of owner of the car ( obviously not in the name of the employee!!..) and TDS of 2.4 % is applicable.
Also, one can consider pertrol reimbursement to a reasonable and genuine limits for different levels.
Hope this helps..
Regards,
Rajat Joshi
From India, Pune
TA - Travel allowance- it is taxable..avoid it if you can..instead use Conveyance allowance of Rs 800 per month..
CCA, FA- ( what is FA?) & Special allowance is all Taxable..though different heads but what is the use?..
Instead provide CEA - Children Education Allowance - tax free allowance with the limit of Rs 100 per child per month upto two children.
Medical Allowance - it is taxable unless you show it as reimbursement..payable on the production of legible & genuine medical bills. Max - Rs 15,000/- per annum.
Besides, you can consider Sodexho Meal Coupons if it is available in your city ..the amount can be Rs 1500/- per month.
For senior management - you can consider a car lease where arms length transcation is maintained whereby the cheque is issued in name of owner of the car ( obviously not in the name of the employee!!..) and TDS of 2.4 % is applicable.
Also, one can consider pertrol reimbursement to a reasonable and genuine limits for different levels.
Hope this helps..
Regards,
Rajat Joshi
From India, Pune
Hi,
Can anybody tell me if
1.Grade Allowance is taxable or not and is there any limit of exemption? 2.Sodexho Meal Coupons tax exemption limit?
3.CEA - Children Education Allowance can it be availed by those who are single or by DINK members(Double income no kids) and is case if an individual has a kid do he need to show some proof?
Bye
From India, Delhi
Can anybody tell me if
1.Grade Allowance is taxable or not and is there any limit of exemption? 2.Sodexho Meal Coupons tax exemption limit?
3.CEA - Children Education Allowance can it be availed by those who are single or by DINK members(Double income no kids) and is case if an individual has a kid do he need to show some proof?
Bye
From India, Delhi
DEAR KAVITHA,
IT IS INDEED A NICE PIECE OF WORK.BUT THERE ARE MANY OTHER FACTORS ONE NEED TO TAKE INTO ACCOUNT BEFORE FINALIZING ANY SPECIFIC PATTERN OR STRUCTURE OF SALARY SYSTEM:
(1) THE KIND OF INDUSTRY
(2) PAYING CAPACITY OF A PARTICULAR ORG.
(3) BASIC REWARD PHILOSOPHY OF THE ORG.
(4) GOVT RULES AND REGULATIONS
(5) INTERNATIONAL PRACTICES AS WE ARE NOW IN THE ERA OF GLOBOLISATION
(6)INCOME TAX ANGLE WHICH IS OF PARAMOUNT IMP.
AND MANY MORE
FROM PROF S.C.GHOSH
Hi Gayu_hr,
Yes, it is taxable..
Circular on the FBT is silent on the same and expects the reasonable limit and therefore most of the companies provide Rs 1500 to 2500 per month.
CEA - can be only availed by those who have children..and it is paid every month on the payroll. It is non taxable and at the end of the year employees are expected to provide the bill of school fees to claim the exemption.
Regards,
Rajat Joshi
From India, Pune
Yes, it is taxable..
Circular on the FBT is silent on the same and expects the reasonable limit and therefore most of the companies provide Rs 1500 to 2500 per month.
CEA - can be only availed by those who have children..and it is paid every month on the payroll. It is non taxable and at the end of the year employees are expected to provide the bill of school fees to claim the exemption.
Regards,
Rajat Joshi
From India, Pune
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