Dear Shweta,
Recovery of the Advance against Salary is depend up on Employee Choice & his declaration from written communication.
More companies are followed the amount recovered from Employee in Ten Installments.
Regards,
Krishna.B
From India, Pune
Recovery of the Advance against Salary is depend up on Employee Choice & his declaration from written communication.
More companies are followed the amount recovered from Employee in Ten Installments.
Regards,
Krishna.B
From India, Pune
Swetha, you cvannot recover the given amount in 4 equal installments as you are an organization and not running a pawn shop to withdraw his whole earnings of the month. Please see that you inform the employee that the amount will be recovered in 10 or 12 installments from his pay.
Dr.T.V.Venkataramanan
From India, Madras
Dr.T.V.Venkataramanan
From India, Madras
Dear Shweta,
It is not that the concerned employee has "taken" advance of Rs.1 Lac from the Co. The fact remains that he had applied for the advance and the Company agreed to give it to him.
I am sure the entire process of asking for the "advance" and "granting" of the same would have been in writing.
Normally at the time of giving such advances (actually it a loan that has been given in this case) it is cearly spelt out that the amount given as loan will be deducted in a fixed number of instalments from the salary of the employee and his consent to the same obtained as a pre-condition to the grant of loan.
In the instant case, the employee's salary is Rs.25,000/- and if you adjust his entire salary against the loan you will actually be putting the employee to severe hardship.
You could, maybe, decide to recover the amount in 10 equal instalments from the salary of the employee. But do put this in writing and get the employee's consent to such deductions.
Someone has talked about the Factories Act and 50% deductions etc....This is not quite right. The Factories Act does not deal with such matters.
Best Wishes,
Vasant Nair
From India, Mumbai
90It is not that the concerned employee has "taken" advance of Rs.1 Lac from the Co. The fact remains that he had applied for the advance and the Company agreed to give it to him.
I am sure the entire process of asking for the "advance" and "granting" of the same would have been in writing.
Normally at the time of giving such advances (actually it a loan that has been given in this case) it is cearly spelt out that the amount given as loan will be deducted in a fixed number of instalments from the salary of the employee and his consent to the same obtained as a pre-condition to the grant of loan.
In the instant case, the employee's salary is Rs.25,000/- and if you adjust his entire salary against the loan you will actually be putting the employee to severe hardship.
You could, maybe, decide to recover the amount in 10 equal instalments from the salary of the employee. But do put this in writing and get the employee's consent to such deductions.
Someone has talked about the Factories Act and 50% deductions etc....This is not quite right. The Factories Act does not deal with such matters.
Best Wishes,
Vasant Nair
From India, Mumbai
As per normal practice, after all deduction including, esi,pf, incometex,including instalment of loan,the employee must carry 40percent of his total salary. N K Sharma
From India, Chandigarh
From India, Chandigarh
Salary Advance should be given after taking proper approval from the Management.Care should be taken to see that proper documentation and undertaking has to be taken form the employee.
Repayment can be fixed based on the request of the employee and approval of the management.
From India, Bangalore
Repayment can be fixed based on the request of the employee and approval of the management.
From India, Bangalore
Payment of wages act says- All the deductions and recoveries from the salary cannot exceed more than 75% if he is a member of cooperative society. If he is not a member then the deductions cannot be more than 50% of the salary. Law says at least 25% should be paid to meet his basic needs. Violating this is an offense.
From India, Bangalore
From India, Bangalore
Salary Advance cannot be more than a months salary, Salary advance can be deducted in one go also. Here the case is of Staff Loan which depends upon the policy of the Company. As rightly said by Muslipatla and Banerjee the Staff loan norms should be followed
From India, Ahmadabad
From India, Ahmadabad
Sweta ji ..
When an employee taken salary advance , company should be clear from employee regarding EMI for recovering the advance before approve the same this amount may be Rs 500/- as depend on decision of Management.
From India, Delhi
When an employee taken salary advance , company should be clear from employee regarding EMI for recovering the advance before approve the same this amount may be Rs 500/- as depend on decision of Management.
From India, Delhi
Dear Shweta
You are not supposed to give loan to any employee unless he completes one year. Even after completion of one year employee will be eligible for two months basic salary. Deducting full salary is not advisable, loan recovery should have decided before providing the loan. Now you can deduct in ten equal installments. All loan matter should be mentioned in the policy.
With regards
Sharath
From India, Kolkata
You are not supposed to give loan to any employee unless he completes one year. Even after completion of one year employee will be eligible for two months basic salary. Deducting full salary is not advisable, loan recovery should have decided before providing the loan. Now you can deduct in ten equal installments. All loan matter should be mentioned in the policy.
With regards
Sharath
From India, Kolkata
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Advance salary format.xls
Salary advance form.doc