Hi,
I have query on salary payment..
I'm working in start up company ...sometimes it is getting delay in salary payments... and I don't want employees waiting for their salaries...So I suggest my management to make their salaries twice a month (3rd and 17th of every month). If yes, then how can I show this in their payslips and we do payments by bank...so can I send cheque's twice to bank towards salaries...
I want to know whether there will be any problem to company/HR in following this practices (this will be only for sometime).
Thank you,
Regards,
Malini G
From India, Hyderabad
I have query on salary payment..
I'm working in start up company ...sometimes it is getting delay in salary payments... and I don't want employees waiting for their salaries...So I suggest my management to make their salaries twice a month (3rd and 17th of every month). If yes, then how can I show this in their payslips and we do payments by bank...so can I send cheque's twice to bank towards salaries...
I want to know whether there will be any problem to company/HR in following this practices (this will be only for sometime).
Thank you,
Regards,
Malini G
From India, Hyderabad
Hello Malini,
Think about how you will show the deductions like PF, ESI, PT twice a month.
It will complicate your statutory formalities.
It is also questionable whether your bank will accept salary, twice a month.
Instead, you may fix a particular date say 7th /10th of every month for salaries.
I don't think salary twice a month is advisable.
Let us wait for the senior's comments in this regard.
Regards,
Vaishalee Parkhi
From India, Pune
175Think about how you will show the deductions like PF, ESI, PT twice a month.
It will complicate your statutory formalities.
It is also questionable whether your bank will accept salary, twice a month.
Instead, you may fix a particular date say 7th /10th of every month for salaries.
I don't think salary twice a month is advisable.
Let us wait for the senior's comments in this regard.
Regards,
Vaishalee Parkhi
From India, Pune
Hi Malini,
I am agreed with the Vaishali nevertheless you may change the Attendance and salary cycle so that you may get time to prepare the salary as well as to transfer the fund.
another option may be to make payments grade wise in two parts which has to be done before 10th so you may get time to comply the other statutory formalities again the payment cycle could be of previous month.
Please let me know if there is any rectification.
--
Regards,
Hardik
From India, Pune
I am agreed with the Vaishali nevertheless you may change the Attendance and salary cycle so that you may get time to prepare the salary as well as to transfer the fund.
another option may be to make payments grade wise in two parts which has to be done before 10th so you may get time to comply the other statutory formalities again the payment cycle could be of previous month.
Please let me know if there is any rectification.
--
Regards,
Hardik
From India, Pune
Dear Malini,
the same thing happend in my company too, and we did below :
1.At the time recession, salary of middle & top management release in 2 terms 75% on 7th and 25% on 25th of month but salary slip was generated on 7th only.
2.Presently, salary upto 12K released on 7th and above that release on 10th of every month.Along this allownaces(which are not shown in salaryslip but counted in CTC) are released on 25th of every month.
you can also follow the same precess.
From India, Pune
the same thing happend in my company too, and we did below :
1.At the time recession, salary of middle & top management release in 2 terms 75% on 7th and 25% on 25th of month but salary slip was generated on 7th only.
2.Presently, salary upto 12K released on 7th and above that release on 10th of every month.Along this allownaces(which are not shown in salaryslip but counted in CTC) are released on 25th of every month.
you can also follow the same precess.
From India, Pune
You can make lumpsum advances cadrewise and the same advances can be recovered fully in the salary. Pon
From India, Lucknow
From India, Lucknow
Dear Malini
You can make Fortnightly Payment to all the employees. After making the payment you have to make a consolidated summary of their salary and prepare your PF Remittance Details, ESI Remittance Details, and Professional Tax also as per attached sheet.
From India, Kumbakonam
You can make Fortnightly Payment to all the employees. After making the payment you have to make a consolidated summary of their salary and prepare your PF Remittance Details, ESI Remittance Details, and Professional Tax also as per attached sheet.
From India, Kumbakonam
Dear Malini
What i can make out is that the above problem occur mainly due to couple of reasons:-
1) Attendance Issue :- your salary may be getting delay due to collating of attendance,
which at times are huge task(when you dont have Attnd.
software ) or if no Cut out period is set for Attendance.
Solution:- You need to introduce the Attendance cut out period eg Lets
assume that the salary payment date is the last working day of
every month. Lets take July-11 month salary. Collate
Attendance data (on 21st Juy-11) for the month of July for the
period 1st July to 20th July (consider 20th as cut off date).
Process the salary for whole month and pay next 10 days
considering them as full present. Adjust the leave data of July
(period 21st Jul -30th Jul) in the following month pay cycle.
This will give you time of 10 days to collate & process salary.
which is more than sufficient to process any nos head count
salary for any organisation.
2) Due to Funds :- At times the salary payment gets held up due to delay in arranging
funds.
Solution:- You need to introduce a process of intimating the tentative payout
cost details. You should intimate the cost details to Finance /
Treasury team 2-3 days before the actual salary payment day.
Do look into this process in your organisation and see if this helps.
regards
RB
From India, Pune
What i can make out is that the above problem occur mainly due to couple of reasons:-
1) Attendance Issue :- your salary may be getting delay due to collating of attendance,
which at times are huge task(when you dont have Attnd.
software ) or if no Cut out period is set for Attendance.
Solution:- You need to introduce the Attendance cut out period eg Lets
assume that the salary payment date is the last working day of
every month. Lets take July-11 month salary. Collate
Attendance data (on 21st Juy-11) for the month of July for the
period 1st July to 20th July (consider 20th as cut off date).
Process the salary for whole month and pay next 10 days
considering them as full present. Adjust the leave data of July
(period 21st Jul -30th Jul) in the following month pay cycle.
This will give you time of 10 days to collate & process salary.
which is more than sufficient to process any nos head count
salary for any organisation.
2) Due to Funds :- At times the salary payment gets held up due to delay in arranging
funds.
Solution:- You need to introduce a process of intimating the tentative payout
cost details. You should intimate the cost details to Finance /
Treasury team 2-3 days before the actual salary payment day.
Do look into this process in your organisation and see if this helps.
regards
RB
From India, Pune
Dear Malini
My suggestion would be calculate their actual salary including statutory deductions and the net salary you divide into 2 instalments and pay so that you will not have statutory related issues.
Regards
Suresh
From Spain
My suggestion would be calculate their actual salary including statutory deductions and the net salary you divide into 2 instalments and pay so that you will not have statutory related issues.
Regards
Suresh
From Spain
Dear Malini: You can give 50% of salary as advance on 7th and salary on 15th of the month after deducting the advance. This may be a way to solve your problem. Regards.
From Bangladesh
From Bangladesh
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Salary-Note.doc
SALARY SHEET CALCULATION.xls