Hi All,
I am working with a newly opened Pvt Ltd company with less than 20 employees and I am facing some problem in understanding certain salary break-ups. I would appreciate if you can please help me in getting better understanding.
Please tell me is it compulsory for any company to provide monthly bonus to the employees as a part of variable salary??
and the other thing on which I am very confused that what is the criteria for deciding the basic salary of any employee.
e.g. if any employee is getting 17000 in hand so how should i decide his basic salary?? Is there any statutory guideline on deciding the basic salary?
please suggest and help
thanks in advance
From India, Jaipur
11I am working with a newly opened Pvt Ltd company with less than 20 employees and I am facing some problem in understanding certain salary break-ups. I would appreciate if you can please help me in getting better understanding.
Please tell me is it compulsory for any company to provide monthly bonus to the employees as a part of variable salary??
and the other thing on which I am very confused that what is the criteria for deciding the basic salary of any employee.
e.g. if any employee is getting 17000 in hand so how should i decide his basic salary?? Is there any statutory guideline on deciding the basic salary?
please suggest and help
thanks in advance
From India, Jaipur
Dear Sir,
Frist of all you have to take the Minimum Wages notification. So according to that you have to decide the Basic and DA then you divide the othere amount. Why because PF is deduct on the Minimum wages amount so you have to prepare your bifirication according to your state Minimum Wages notification.
From India, Bangalore
Frist of all you have to take the Minimum Wages notification. So according to that you have to decide the Basic and DA then you divide the othere amount. Why because PF is deduct on the Minimum wages amount so you have to prepare your bifirication according to your state Minimum Wages notification.
From India, Bangalore
thanks a lot for your help I have gone through the minimum wage act for my state. One more thing I want to ask is whether the monthly bonus is also a mandate?
From India, Jaipur
From India, Jaipur
It is compulosry to pay bonus with in 08 month from the financial year if it is not a new establishment.
In case of new establishment payment of bonus is exempted upto 05 year.
Vijay Mishra
Officer HR & Admin
From India, Ahmadabad
In case of new establishment payment of bonus is exempted upto 05 year.
Vijay Mishra
Officer HR & Admin
From India, Ahmadabad
Upto 6500 Rs salary is all basic.When salary exceeds 6500 it has to broken into other components. Basic can be anything between 30-50% of the gross salary.
From India, Mumbai
From India, Mumbai
Please clarify one more doubt if the mediclaim contribution has to be done by the employer and employee both???
From India, Jaipur
From India, Jaipur
Please follow the Min. wages act of ur place to determine the basic you will offer your employees. Generally the DA/ HRA varies in difrnt companies. Nowadays DA is not seen in many company compensation, provided they have much more lucrative alternative to compensate the absence of Dearnes allowance. About percentage of HRA its normally 40-50%..higher in Urban and Lower in Rural.
From India, Calcutta
From India, Calcutta
HRA will depend on Metro or on Metro, Metro is 50% of Basic and for Non Metro its 40% of the basic.
From India, Mumbai
From India, Mumbai
FOR HRA IT’S 50% FOR METRO CITIES AND 40% FOR NON METRO CITIES ON BASIC SALARY . Regards SATYAJEET PADHEE
From India, Madras
From India, Madras
Hi Harpreet
01.First you need to refer Minimum wages act of the respective state
02.Bonus calculation you can refer Payment of Bonus Act 1965 .It applicable across India, Please refer the below attachment.
03.For HRA 50% on Basic +DA in case of Bombay,Delhi,Calcutta & Madras
40% on Basic +DA Other than Metropolitan Cities
04.For Medi claim Policy is given by the employer if The employee salary is more than Rs 15,000/-, if it is less then Rs 15,000/- covered under ESI ACT
05.First of all you need to make HR policies for your company
Let me know if you have any further information.
V.V.N.Suresh
From India, Hyderabad
01.First you need to refer Minimum wages act of the respective state
02.Bonus calculation you can refer Payment of Bonus Act 1965 .It applicable across India, Please refer the below attachment.
03.For HRA 50% on Basic +DA in case of Bombay,Delhi,Calcutta & Madras
40% on Basic +DA Other than Metropolitan Cities
04.For Medi claim Policy is given by the employer if The employee salary is more than Rs 15,000/-, if it is less then Rs 15,000/- covered under ESI ACT
05.First of all you need to make HR policies for your company
Let me know if you have any further information.
V.V.N.Suresh
From India, Hyderabad
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