Pls note my specific clarifications:-
My concern is if doing increment on CTC factor is more apt way or doing on Basic salary is better way?
As I already stated every employer is bound to first pay the applicable Minimum Wages as defined in the MW Act of the state. I think in your case you are paying less than the MW, so you need to first pay the wages as I clarified above. Over and above of the MW is solely employer decision.
Secondly is bonus a variable component for every year? or a compulsion -8.33% on Basic??
Bonus is a separate statutory liability for the employer, you can’t consider the Bonus as monthly wages part. You need to pay bonus withing 08 months for the FY @ 8.33% on the Basic+DA.
Please clarify? Can I take my staff for a holiday and spend more amount instead of giving them bonus entitled amount?
A holiday outing with the staff is falls under staff welfare. You can’t club staff welfare with statutory liability. First you have to pay the Bonus as per the act.
On basis of the info provided abvoe, it seems in r/o lower level staff you are not following the MW Act. As an expert I would advice first comply the minimum level in r/o every employee and frame a standard salary structure than accordingly you can implement the “Increment” system.
Still check the Minimum Wages Notification in the forum after every six months (Apr & Oct) in r/o Delhi regions and keep your salary structure updated accordingly.
Hope all your queries answered, fellow experienced member can put more light.
From India, Delhi
Acknowledge(0)
Amend(0)
238My concern is if doing increment on CTC factor is more apt way or doing on Basic salary is better way?
As I already stated every employer is bound to first pay the applicable Minimum Wages as defined in the MW Act of the state. I think in your case you are paying less than the MW, so you need to first pay the wages as I clarified above. Over and above of the MW is solely employer decision.
Secondly is bonus a variable component for every year? or a compulsion -8.33% on Basic??
Bonus is a separate statutory liability for the employer, you can’t consider the Bonus as monthly wages part. You need to pay bonus withing 08 months for the FY @ 8.33% on the Basic+DA.
Please clarify? Can I take my staff for a holiday and spend more amount instead of giving them bonus entitled amount?
A holiday outing with the staff is falls under staff welfare. You can’t club staff welfare with statutory liability. First you have to pay the Bonus as per the act.
On basis of the info provided abvoe, it seems in r/o lower level staff you are not following the MW Act. As an expert I would advice first comply the minimum level in r/o every employee and frame a standard salary structure than accordingly you can implement the “Increment” system.
Still check the Minimum Wages Notification in the forum after every six months (Apr & Oct) in r/o Delhi regions and keep your salary structure updated accordingly.
Hope all your queries answered, fellow experienced member can put more light.
From India, Delhi
Acknowledge(0)Amend(0)
Dear sir,
Thank you for your advice. We are following the Minimum Wages Act religiously, and all the employees are paid as per the act. Regarding bonus and increment points, I think it majorly depends on the employer as there is no standard practice. I have heard the same sentence with whomever I have asked and guess we should make our decision.
It was nice interacting with you, sir. Have a good day ahead!
Regards,
Reena.
From India, Delhi
Acknowledge(0)Amend(0)
Thank you for your advice. We are following the Minimum Wages Act religiously, and all the employees are paid as per the act. Regarding bonus and increment points, I think it majorly depends on the employer as there is no standard practice. I have heard the same sentence with whomever I have asked and guess we should make our decision.
It was nice interacting with you, sir. Have a good day ahead!
Regards,
Reena.
From India, Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
A Collection of Wise Sayings.docx
A-wise-old-man. pps