First, you have to segregate employees' payroll into (1) coming under TDS and (2) not coming under TDS.
Payroll should be completed with respect to final disbursement, and the amount credited to each employee's personal account as due to them. By doing this, you have fulfilled the statutory requirements of PF, ESIC, TDS, etc.
So, your first priority is to pay those deductions into the Government Account. The Government does not bother whether the employee gets their money or not, but timely payment is the only thing counted by them to levy a penalty.
Secondly, decide when funds would be available for the payment of these and in what proportion, then pay them into their bank account or in cash as the case may be on different dates.
I would suggest that a proportionate payment on every 27th or 28th of each month goes into the employee's account as they have to run their family and meet expenses.
Because with the trend on the 1st of each month, each one will stand at the door of the employees for their money like milk, newspapers, etc.
If you delay the salary, not only will your company suffer from financial crunch and liquidity, but each employee will also undergo mental torture by the Home Minister and also the people they have to answer to.
Always think of the end-user and how it would help them in their needs.
Regards,
Ram
From Saudi Arabia
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10Payroll should be completed with respect to final disbursement, and the amount credited to each employee's personal account as due to them. By doing this, you have fulfilled the statutory requirements of PF, ESIC, TDS, etc.
So, your first priority is to pay those deductions into the Government Account. The Government does not bother whether the employee gets their money or not, but timely payment is the only thing counted by them to levy a penalty.
Secondly, decide when funds would be available for the payment of these and in what proportion, then pay them into their bank account or in cash as the case may be on different dates.
I would suggest that a proportionate payment on every 27th or 28th of each month goes into the employee's account as they have to run their family and meet expenses.
Because with the trend on the 1st of each month, each one will stand at the door of the employees for their money like milk, newspapers, etc.
If you delay the salary, not only will your company suffer from financial crunch and liquidity, but each employee will also undergo mental torture by the Home Minister and also the people they have to answer to.
Always think of the end-user and how it would help them in their needs.
Regards,
Ram
From Saudi Arabia
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Starting an HR department from scratch requires patience and initiative, and you have to do it in a completely confidential manner. Otherwise, instead of cooperation, you will create doubts in the minds of employees.
Firstly, start by collecting the company's details, information about their directors, and employees. Next, format a form to gather all employee details such as name, father's name, date of birth, gender (M/F), marital status, qualifications, experience, previous company details, family and children information, emergency contact details, telephone numbers, mobile numbers, and other relevant contacts.
For the second point, begin by obtaining copies of their CVs, extracting the relevant information into your files, and compiling the data yourself to understand your requirements better.
Now, move on to their salary particulars, starting from their joining date, increments received, and their current salary. Also, document the position they initially joined in and their current position, whether through experience or additional qualifications.
Once all the necessary details are gathered and recorded, it's time to address the company policies:
a. Clarify the company's policies on leave, vacations, leave travel, and other benefits.
b. Define the company's policy on increments; implementing a system of yearly increments is beneficial as employees anticipate salary increases.
c. Discuss bonus policies.
d. Outline various leave types like casual leave, sick leave, and privilege leave.
e. Work on balancing and designing a system for casual and privilege leaves to ensure smooth operations even in the absence of an employee.
Moving on to operations:
Ensure proper employee allocation to each job to avoid disruptions in case of sudden absences. Discuss with department heads about their departments, challenges faced, and strategies for handling employee absences effectively.
Overall, the HR head should be approachable, prioritize employee welfare, and ensure the company's seamless operation.
With Regards,
Ram
From Saudi Arabia
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Firstly, start by collecting the company's details, information about their directors, and employees. Next, format a form to gather all employee details such as name, father's name, date of birth, gender (M/F), marital status, qualifications, experience, previous company details, family and children information, emergency contact details, telephone numbers, mobile numbers, and other relevant contacts.
For the second point, begin by obtaining copies of their CVs, extracting the relevant information into your files, and compiling the data yourself to understand your requirements better.
Now, move on to their salary particulars, starting from their joining date, increments received, and their current salary. Also, document the position they initially joined in and their current position, whether through experience or additional qualifications.
Once all the necessary details are gathered and recorded, it's time to address the company policies:
a. Clarify the company's policies on leave, vacations, leave travel, and other benefits.
b. Define the company's policy on increments; implementing a system of yearly increments is beneficial as employees anticipate salary increases.
c. Discuss bonus policies.
d. Outline various leave types like casual leave, sick leave, and privilege leave.
e. Work on balancing and designing a system for casual and privilege leaves to ensure smooth operations even in the absence of an employee.
Moving on to operations:
Ensure proper employee allocation to each job to avoid disruptions in case of sudden absences. Discuss with department heads about their departments, challenges faced, and strategies for handling employee absences effectively.
Overall, the HR head should be approachable, prioritize employee welfare, and ensure the company's seamless operation.
With Regards,
Ram
From Saudi Arabia
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Dear Malini,
Please prepare the salary statement and the salary slip once a month. Do not prepare two salary statements and two salary slips as it may lead to statutory compliance issues. However, if you are unable to pay the salary in one go, you can always send two cheques to the bank at intervals. Normally, the bank will not have any problems. There is only one constraint related to the payment date as per the Payment of Wages Act. In case of any delays, post a notice on the notice board regarding the salary delay. I trust that any doubts you had have been clarified.
Shivaswamy I.K
9620227995
From India, Bangalore
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Please prepare the salary statement and the salary slip once a month. Do not prepare two salary statements and two salary slips as it may lead to statutory compliance issues. However, if you are unable to pay the salary in one go, you can always send two cheques to the bank at intervals. Normally, the bank will not have any problems. There is only one constraint related to the payment date as per the Payment of Wages Act. In case of any delays, post a notice on the notice board regarding the salary delay. I trust that any doubts you had have been clarified.
Shivaswamy I.K
9620227995
From India, Bangalore
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Dear Malini,
I support what S. Bhaskar stated. You can provide a salary slip once a month, but make salary payments every two months. There are no legal hurdles in doing the same. However, this process will be very cumbersome and also very tiring.
Regards,
Octavious
From India, Mumbai
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I support what S. Bhaskar stated. You can provide a salary slip once a month, but make salary payments every two months. There are no legal hurdles in doing the same. However, this process will be very cumbersome and also very tiring.
Regards,
Octavious
From India, Mumbai
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Thank you, Mr. Octavious. I have been providing fortnightly payments to all my employees through bank transfers via Corporation Bank in Hyderabad. For the remittance of PF, I aggregate the basic wages of each employee to determine the PF amount. The paysheet is created in an Excel sheet, and the payslip can be prepared manually or through mail merge in MS Word format.
Dear Malini, I agree with what S. Bhaskar mentioned. You can issue salary slips monthly while making salary payments every two months. There are no legal obstacles to this approach. However, this process can be quite cumbersome and exhausting.
Regards,
Octavious
From India, Kumbakonam
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Dear Malini, I agree with what S. Bhaskar mentioned. You can issue salary slips monthly while making salary payments every two months. There are no legal obstacles to this approach. However, this process can be quite cumbersome and exhausting.
Regards,
Octavious
From India, Kumbakonam
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Thank you, Mr. Octavious.
I have provided fortnightly payments to all my employees through bank transfers (Corporation Bank in Hyderabad). For PF remittance, I used to consolidate the basic wages of each employee to determine the amount to be paid for PF.
Dear Malini,
Paysheets will be created in Excel, and payslips can be prepared manually or using mail merge in MS Word format. Even in the event of an inspection by ESI or PF authorities, you can easily explain that the fortnightly payment arrangement was made to facilitate the employees.
"I support what S. Bhaskar stated. You can provide salary slips once a month but make salary payments every two months. There are no legal hurdles in doing so. However, this process will be very cumbersome and tiring.
Regards,
Octavious"
From India, Kumbakonam
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I have provided fortnightly payments to all my employees through bank transfers (Corporation Bank in Hyderabad). For PF remittance, I used to consolidate the basic wages of each employee to determine the amount to be paid for PF.
Dear Malini,
Paysheets will be created in Excel, and payslips can be prepared manually or using mail merge in MS Word format. Even in the event of an inspection by ESI or PF authorities, you can easily explain that the fortnightly payment arrangement was made to facilitate the employees.
"I support what S. Bhaskar stated. You can provide salary slips once a month but make salary payments every two months. There are no legal hurdles in doing so. However, this process will be very cumbersome and tiring.
Regards,
Octavious"
From India, Kumbakonam
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The reason for the above subject by organizations is either to evade tax or to guide against cash flow problems by paying twice. The first salary is paid on the 14th of the month, and the second one around the 24th of the same month. On the payroll spreadsheets, both will carry half of the allowances, deductions (e.g., pension and PAYE deductions, etc.). Your organization will either have to pay through different banks or pay into a single bank with different company names, one as the parent company and the other as the subsidiary company. This will also motivate employees at any point in time since money will not be scarce in their accounts. The computation on the payslip is never a problem because all the allowances and deductions will be computed together on one payslip issued at the second salary payment.
I hope this meets your request.
Best regards,
Fola
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I hope this meets your request.
Best regards,
Fola
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Dear all,
My company also makes salary payments twice a month, on the 5th and 25th of each month. On the 5th, employees receive their basic salary, which remains fixed every month. On the 25th, the company pays incentives. In fact, everybody agrees with this policy.
I am happy to share our experience.
Thao - from Vietnam
From Vietnam, Hanoi
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My company also makes salary payments twice a month, on the 5th and 25th of each month. On the 5th, employees receive their basic salary, which remains fixed every month. On the 25th, the company pays incentives. In fact, everybody agrees with this policy.
I am happy to share our experience.
Thao - from Vietnam
From Vietnam, Hanoi
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Your problem seems to be a financial one. Your company is not able to arrange funds to pay the salary of all employees in one go. But arranging it in two installments seems to be a solution.
One simple solution is to pay part of the salary as a salary advance on the 15th of every month. This can be paid through the bank; there is no problem. You need not deduct and pay any statutory contributions on this advance payment.
At the end of the month, calculate salary and deductions for the entire month as usual, also deduct the salary advance paid on the 15th from the monthly salary. Let this deduction reflect in the payslip as well.
Hi, I have a query on salary payment. I'm working in a startup company, sometimes there are delays in salary payments, and I don't want employees waiting for their salaries. So, I suggested to my management to make their salaries twice a month (3rd and 17th of every month). If yes, then how can I show this on their payslips, and we do payments by bank, so can I send cheques twice to the bank towards salaries? I want to know whether there will be any problem for the company/HR in following these practices (this will be only for some time).
Thank you,
Regards,
Malini G
From India, Pune
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One simple solution is to pay part of the salary as a salary advance on the 15th of every month. This can be paid through the bank; there is no problem. You need not deduct and pay any statutory contributions on this advance payment.
At the end of the month, calculate salary and deductions for the entire month as usual, also deduct the salary advance paid on the 15th from the monthly salary. Let this deduction reflect in the payslip as well.
Hi, I have a query on salary payment. I'm working in a startup company, sometimes there are delays in salary payments, and I don't want employees waiting for their salaries. So, I suggested to my management to make their salaries twice a month (3rd and 17th of every month). If yes, then how can I show this on their payslips, and we do payments by bank, so can I send cheques twice to the bank towards salaries? I want to know whether there will be any problem for the company/HR in following these practices (this will be only for some time).
Thank you,
Regards,
Malini G
From India, Pune
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