Sorry for the earlier post which went out incomplete erroneously.
This is in response to the query about minimum wages raised by P Sharma.
As has been brought out above, the minimum wages (Basic+VDA) of a semi skilled worker in Delhi is Rs 8,008/- per month as on date.
The company is paying only Rs 5,400/- as Basic + VDA which is incorrect.
Presuming that you approach the HR Manager and bring out the anomaly in your wages to his notice and the Company decides to give you the wages as per the minimum wages without tinkering much with your CTC, one of the options with them is-
Basic +VDA Rs 8,010/-
Conv Allce Rs 990/-
Gross Rs 9,000/-
Less EPF Rs 780/-
Less ESI Rs 158/-
Take Home Rs 8,062/-
Employer's EPF share Rs 885/- (13.61% of Basic & VDA)
Employer's ESI share Rs 428/-
Insurance Rs 250/-
CTC Rs 10,563/-
What are the implications?
Your take home salary goes down by Rs Rs 132/-
The total contribution to EPF goes up by Rs 264/-
Your CTC goes up by Rs 150/-
Your tax liability goes up by Rs 2,610/ per month.
Seniors-
Is my contention above correct?
Is the ESI not paid only on Basic+VDA? Why is the Company paying it on Gross?
Since an employee is covered under ESI what is the need to cover him under another insurance scheme?
Please advice.
From India, Jaipur
This is in response to the query about minimum wages raised by P Sharma.
As has been brought out above, the minimum wages (Basic+VDA) of a semi skilled worker in Delhi is Rs 8,008/- per month as on date.
The company is paying only Rs 5,400/- as Basic + VDA which is incorrect.
Presuming that you approach the HR Manager and bring out the anomaly in your wages to his notice and the Company decides to give you the wages as per the minimum wages without tinkering much with your CTC, one of the options with them is-
Basic +VDA Rs 8,010/-
Conv Allce Rs 990/-
Gross Rs 9,000/-
Less EPF Rs 780/-
Less ESI Rs 158/-
Take Home Rs 8,062/-
Employer's EPF share Rs 885/- (13.61% of Basic & VDA)
Employer's ESI share Rs 428/-
Insurance Rs 250/-
CTC Rs 10,563/-
What are the implications?
Your take home salary goes down by Rs Rs 132/-
The total contribution to EPF goes up by Rs 264/-
Your CTC goes up by Rs 150/-
Your tax liability goes up by Rs 2,610/ per month.
Seniors-
Is my contention above correct?
Is the ESI not paid only on Basic+VDA? Why is the Company paying it on Gross?
Since an employee is covered under ESI what is the need to cover him under another insurance scheme?
Please advice.
From India, Jaipur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Typical salary breakup.jpg
Salary breakup format.xls
Creating a Competitive Salary Structure.doc