It is not necessary that the basic should be a certain percentage of the gross CTC. Basic varies from city to city. As per the compliance for Mumbai, the basic should be at least Rs. 10,000. If it doesn't have Rs. 10,000 as basic, then the company comes under the bonus act.
From India, Mumbai
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From India, Mumbai
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Dear Ruchi, Is there any notification regarding fixing 10000 as basic by labour department or you talking of similar industry standards???
From India, Calcutta
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6From India, Calcutta
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No, I don't think that there is any legal requirement of fixing the basic wage at Rs 10,000 if the establishment is in Bombay. Certainly, if the minimum wage notification calls for a basic wage of Rs 10,000, that will be maintainable.
Coming to Abdul's apprehension of the role of HR in cost reduction, I would appreciate that HR has to participate in such cost reduction programs of the company. I have seen even Unions dropping their demand for wage hike or bonus when they realize that the company's financial condition is in bad shape. But that does not mean that you can fix the wage lower than minimum wages or with a very low basic wage so that you can reduce the employer's contributions towards statutory funds or bonus. If you had earlier given PF on gross wages and now want to reduce it to basic wage, you can do that, but subject to one condition that basic wages or PF qualifying wages (Contributing wages) should not be less than Rs 15,000. Section 12 of the PF Act provides that PF qualifying wages should not be reduced so as to reduce the employer's liability. But the same will not be applicable when it is reduced from a much higher amount to the PF ceiling wages. This was decided in Marathwada Gramin Banks case wherein the Supreme Court has ruled that the employer can reduce the PF wages and the PF Organization has no right to demand contribution on an amount over Rs 6,500 (at the time the ruling came, the wage ceiling was Rs 6,500, but now it has become Rs 15,000).
Madhu.T.K
From India, Kannur
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Coming to Abdul's apprehension of the role of HR in cost reduction, I would appreciate that HR has to participate in such cost reduction programs of the company. I have seen even Unions dropping their demand for wage hike or bonus when they realize that the company's financial condition is in bad shape. But that does not mean that you can fix the wage lower than minimum wages or with a very low basic wage so that you can reduce the employer's contributions towards statutory funds or bonus. If you had earlier given PF on gross wages and now want to reduce it to basic wage, you can do that, but subject to one condition that basic wages or PF qualifying wages (Contributing wages) should not be less than Rs 15,000. Section 12 of the PF Act provides that PF qualifying wages should not be reduced so as to reduce the employer's liability. But the same will not be applicable when it is reduced from a much higher amount to the PF ceiling wages. This was decided in Marathwada Gramin Banks case wherein the Supreme Court has ruled that the employer can reduce the PF wages and the PF Organization has no right to demand contribution on an amount over Rs 6,500 (at the time the ruling came, the wage ceiling was Rs 6,500, but now it has become Rs 15,000).
Madhu.T.K
From India, Kannur
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Can someone help with the following:
What would be the breakdown of the payslip for $320,000? What would be the basic pay for $320,000? The attachment contains details of total earnings and deductions. What would be the specific figures for $320,000?
Alternatively, you can email me at 09fenno@gmail.com.
ASAP!!!
Thank you!
From India, Hyderabad
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What would be the breakdown of the payslip for $320,000? What would be the basic pay for $320,000? The attachment contains details of total earnings and deductions. What would be the specific figures for $320,000?
Alternatively, you can email me at 09fenno@gmail.com.
ASAP!!!
Thank you!
From India, Hyderabad
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