Dear Shweta,
Salary advance means paying about 75% of salary in advance and recovering in the same month. As for as your case is concerned it should be treated as Loan taken for the specific purpose, which can be recovered in agreed installments. Always make sure that the deductions(statutory and others) should be around 25% and take home salary 75%.
From India, Coimbatore
1Salary advance means paying about 75% of salary in advance and recovering in the same month. As for as your case is concerned it should be treated as Loan taken for the specific purpose, which can be recovered in agreed installments. Always make sure that the deductions(statutory and others) should be around 25% and take home salary 75%.
From India, Coimbatore
Dear Shwetha,
I agree with Mr.Batmanabane. It is better to go with installment basis in the case of the employee who have not completed two years. And another option is to execute a bond agreement, even the employee default in payment you can raise a suit against him. It will arise only when you failed to take post date cheques.
This is upto my knowledge, if anything wrong pls ignore.
regards,
Nagarajan.D
From India, Chennai
I agree with Mr.Batmanabane. It is better to go with installment basis in the case of the employee who have not completed two years. And another option is to execute a bond agreement, even the employee default in payment you can raise a suit against him. It will arise only when you failed to take post date cheques.
This is upto my knowledge, if anything wrong pls ignore.
regards,
Nagarajan.D
From India, Chennai
We are paying 25 % as basic salary of the total gross salary . Someone pointed out it should be 50% as per sales promotion employees act and shops and establishment act mumbai. Could you pl advice what diff acts say re percent of basic to total gross ?
From India, Thane
From India, Thane
Hi Smita,
There is no norm for calculating Basic pay with respect to total Gross (CTC). I do not remember any act that specifies this percentage. This percenatge of Basic in calculated taking into account a number of criteria.
1. HRA is always a percent of Basic, PF is calculated on Basic plus HRA.
2. As such if a company does not wish to contribute too much towards PF, which normally is equal to the contribution made by an employee.
I have found that the norm of percent of Basic to gross is never more than 40%.
I hope this helps.
Regards
Ronald
From India, Hyderabad
There is no norm for calculating Basic pay with respect to total Gross (CTC). I do not remember any act that specifies this percentage. This percenatge of Basic in calculated taking into account a number of criteria.
1. HRA is always a percent of Basic, PF is calculated on Basic plus HRA.
2. As such if a company does not wish to contribute too much towards PF, which normally is equal to the contribution made by an employee.
I have found that the norm of percent of Basic to gross is never more than 40%.
I hope this helps.
Regards
Ronald
From India, Hyderabad
Dear shweta
There is no hard & fast rules for deduction of salary advance which is given to employee for different purpose. As per my knowledge we are giving three times of gross salary as a advance and that will be recover within 12 installment. If it is not recover within 12 installment it will treat as long term loan and interest may be charge.
Regards
Banarasi
From India
There is no hard & fast rules for deduction of salary advance which is given to employee for different purpose. As per my knowledge we are giving three times of gross salary as a advance and that will be recover within 12 installment. If it is not recover within 12 installment it will treat as long term loan and interest may be charge.
Regards
Banarasi
From India
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Advance salary format.xls
Salary advance form.doc