Hi, Can someone guide me... We get Variable pay like Performance Incentives, Commissions, and bonuses. Will those be part of the Gross Salary? Thank You
From India, Pune
2From India, Pune
Hi
Normally variable pay / performance incentive will be separate apart from fixed salary and hence it will not be form part of Gross salary.
However for the purpose of income tax calculation all the above payments will be considered as earning only and tax will be levied based on the slab
From India, Madras
Normally variable pay / performance incentive will be separate apart from fixed salary and hence it will not be form part of Gross salary.
However for the purpose of income tax calculation all the above payments will be considered as earning only and tax will be levied based on the slab
From India, Madras
Thank You so much Sir for your guidance ..
My current employer shows the Incentives , performance Bonus as a part of Total Gross .. even tough they get calculated in Income tax , If employer shows these as a part of gross , then it affects on Basic and PF also changes ..
Isn't that could be a major issue ?
Kindly guide ...
Thank You
From India, Pune
My current employer shows the Incentives , performance Bonus as a part of Total Gross .. even tough they get calculated in Income tax , If employer shows these as a part of gross , then it affects on Basic and PF also changes ..
Isn't that could be a major issue ?
Kindly guide ...
Thank You
From India, Pune
The issue arises only when the employer adds performance allowance, commision, incentives etc as part of gross salary for deciding whether he is paying the statutory minimum wages. For the purpose of PF contribution these components of salary could be excluded. After all when the employer can restrict payment of PF on a salary of Rs 15000, what is the relevance of gross salary being inflated with commision, incentives etc? But in respect of employees covered by ESI, these elements will be treated as part of wages provided these components are paid every month.
From India, Kannur
From India, Kannur
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