Dear all
I have recently joined in the HR dept of a product based IT start up where am expected to handle all the HR activities, i am completly new in to the area of payroll. Can anyone please send me the complete ABC of payroll
Need advice in formulating a salary structure.
Thanks and Regards
Nivi
From India, Kochi
1I have recently joined in the HR dept of a product based IT start up where am expected to handle all the HR activities, i am completly new in to the area of payroll. Can anyone please send me the complete ABC of payroll
Need advice in formulating a salary structure.
Thanks and Regards
Nivi
From India, Kochi
Hi Nivi, Am working as a payroll executive in a MNC, but am into US-payroll. If u want i can provide you all the info. abt it in detail.
From United States, Hoffman Estates
From United States, Hoffman Estates
Hi
While issuing appt. letter ( as per company policy) you need to work out the salary structure with various components like Basic, HRA, Conveyance, City Compensatory Allowance, Special Allowance, Medical Allowance, Gratuity, P.F. Employers' contribution and ESI Employers' contribution etc.
There are two components in payroll processing. One is monthly benifits and yearly benifits.
Again company to company it varies as per company's policy, whether all components of monthly pay attracts deduction based on number of days employee present during the month or only certain components are paid based on number of days present and other components are paid fully irrespective of number of days present.
As you know, P.F. is deducted on Basic and DA ( if such components is there) @ 12% and ESI is deducted @ 1.75% on the gross pay which includes all monthly components.
Further Professional Tax as per the respective state slab we need to deduct.
Then only his / her monthly net salary is arrived at.
Of course, there are other deductions such as Labour Welfare Fund, TDS etc.
This subject very vast one and I am trying to make it simple. In case you have any more doubt do revert back to me at
.
Rgds
Sampath
From India, Madras
While issuing appt. letter ( as per company policy) you need to work out the salary structure with various components like Basic, HRA, Conveyance, City Compensatory Allowance, Special Allowance, Medical Allowance, Gratuity, P.F. Employers' contribution and ESI Employers' contribution etc.
There are two components in payroll processing. One is monthly benifits and yearly benifits.
Again company to company it varies as per company's policy, whether all components of monthly pay attracts deduction based on number of days employee present during the month or only certain components are paid based on number of days present and other components are paid fully irrespective of number of days present.
As you know, P.F. is deducted on Basic and DA ( if such components is there) @ 12% and ESI is deducted @ 1.75% on the gross pay which includes all monthly components.
Further Professional Tax as per the respective state slab we need to deduct.
Then only his / her monthly net salary is arrived at.
Of course, there are other deductions such as Labour Welfare Fund, TDS etc.
This subject very vast one and I am trying to make it simple. In case you have any more doubt do revert back to me at
Rgds
Sampath
From India, Madras
Hi,
This is shubha ,i wish to make my career in core hr activites ,so please help me sending some material pertaining to that .Also i would like to know is there any difference in such job profile with respective to the type of comapany say for example:A software firm and a manufacturng firm.
Please do respond me if possible.
Regards.
Shubha.
This is shubha ,i wish to make my career in core hr activites ,so please help me sending some material pertaining to that .Also i would like to know is there any difference in such job profile with respective to the type of comapany say for example:A software firm and a manufacturng firm.
Please do respond me if possible.
Regards.
Shubha.
hello,
This is a great sheet for calculating salary. Though there is a small confusion. I am working in a software company and we calculate salary as follows:
Basic + HRA + Conveyance Allowance + Dress Allowance + Performance Allowance
For which,
HRA = 50% of Basic
Conveyance = Rs. 800 p.m. (fixed)
Performance Allowance = 30% of Basic.
PLease suggest if this calculation is fine.
Thanks
Rupali
From United States, Cambridge
This is a great sheet for calculating salary. Though there is a small confusion. I am working in a software company and we calculate salary as follows:
Basic + HRA + Conveyance Allowance + Dress Allowance + Performance Allowance
For which,
HRA = 50% of Basic
Conveyance = Rs. 800 p.m. (fixed)
Performance Allowance = 30% of Basic.
PLease suggest if this calculation is fine.
Thanks
Rupali
From United States, Cambridge
On reading lot of posts I feel there is a very clear confusion amongst new HR recruits about the difference between CTC and payroll. Payroll is a process and CTC is a management concept.
Payroll has many components - a payroll is a pay out made to an employee in cash and the same gets reflected in his pay slip.
CTC is a term used in Management accounting and MIS reporting. Cost To company varies from company to company and depends on their HR practices and accounting policy.
For the benefit of so many young and new HR executives starting their careers, the reality and practicality of payroll and CTC needs to be well documented and the the knowledge transferred. Unfortunately, I do not find any resource on net that clearly differentiates the two and explains the practical way to implement payroll in an organization.
I am willing to contribute a series of 7 articles if the moderator permits which can be used as basic guide to understanding and practice of employee compensation and employee benefits.
This will be My IP therefore am bit doubtful about how people use this knowledge. If the site owners agree for a copyright agreement and attribute the IP of this content to me I can share the same on this portal.
From China
Payroll has many components - a payroll is a pay out made to an employee in cash and the same gets reflected in his pay slip.
CTC is a term used in Management accounting and MIS reporting. Cost To company varies from company to company and depends on their HR practices and accounting policy.
For the benefit of so many young and new HR executives starting their careers, the reality and practicality of payroll and CTC needs to be well documented and the the knowledge transferred. Unfortunately, I do not find any resource on net that clearly differentiates the two and explains the practical way to implement payroll in an organization.
I am willing to contribute a series of 7 articles if the moderator permits which can be used as basic guide to understanding and practice of employee compensation and employee benefits.
This will be My IP therefore am bit doubtful about how people use this knowledge. If the site owners agree for a copyright agreement and attribute the IP of this content to me I can share the same on this portal.
From China
Hi Srived !
I shall be elated when you could forward the 7 reports on "basic guide to understanding and practice of employee compensation and employee benefits" to the forum or to my mail-id:
Presently concentrating on drafting of HR Policy for the engineering manufacturing company.
regards
From India, Bangalore
I shall be elated when you could forward the 7 reports on "basic guide to understanding and practice of employee compensation and employee benefits" to the forum or to my mail-id:
Presently concentrating on drafting of HR Policy for the engineering manufacturing company.
regards
From India, Bangalore
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