Hi All, Need your urgent attention. Kindly share your inputs
What should the ideal salary breakdown be, taking into account the wage code, PF Act, other acts, and applicable income tax? It should be a legally compliant and tax-friendly structure. What kind of allowances should be included, and which ones should have meaning? Adding allowances that aren't necessary isn't a good idea.
From India, Pune
What should the ideal salary breakdown be, taking into account the wage code, PF Act, other acts, and applicable income tax? It should be a legally compliant and tax-friendly structure. What kind of allowances should be included, and which ones should have meaning? Adding allowances that aren't necessary isn't a good idea.
From India, Pune
Dear Colleague,
There is no such ideal salary structure you can arrive at this juncture of unclear status.
As the Labour Codes proposed is taking time and there are further discussions in the direction as to whether to allow the Allowances at the level of upto 75% for further one year and then in subsequent years onwards, to the level of upto 50% only ( balance % is mandatorily the Basic Pay for all compliance purposes) is still in the air. Hence we need to wait for the outcome.
You can read the below article for academic purpose for now:
https://www.businesstoday.in/opinion...259-2020-12-11
From India, Chennai
309There is no such ideal salary structure you can arrive at this juncture of unclear status.
As the Labour Codes proposed is taking time and there are further discussions in the direction as to whether to allow the Allowances at the level of upto 75% for further one year and then in subsequent years onwards, to the level of upto 50% only ( balance % is mandatorily the Basic Pay for all compliance purposes) is still in the air. Hence we need to wait for the outcome.
You can read the below article for academic purpose for now:
https://www.businesstoday.in/opinion...259-2020-12-11
From India, Chennai
Dear Sir,
Thanks for your response and I completely agree with you that at present their is uncertainty till announcement is done.
Sir, since we have to propose the new structure considering the uncertainty as well. Broadly it looks like the govt. intention is to raise Basic salary upto 50% of Gross Salary in coming 1-3 years.
Considering the cost and govt intention of increasing upto 50% , Can I propose Basic + Allowance :
Option 1.
1st year @ 40% + 60% ,
2nd Year 45% + 55% and
3rd Year 50% + 50%.
Option 2.
1st Year 45% + 55% &
2nd Year 50% + 50%.
What allowances do you think we should Pay where employee can avail tax benefit. Is employee still getting Tax benefit on following or not or their is some change in Income Tax law.
1. Conveyance upto Rs 800/-
2. Medical Allowance : Upto Rs 15000 subject to producing documents.
3. LTS : Once in 2 year subject to producing documents
4. Education : Rs 200 per child or any changes.
5. Any other allowance
Thanks a lot.
Sir looking forward to your response.
Regards
Dharmendra
From India, Pune
Thanks for your response and I completely agree with you that at present their is uncertainty till announcement is done.
Sir, since we have to propose the new structure considering the uncertainty as well. Broadly it looks like the govt. intention is to raise Basic salary upto 50% of Gross Salary in coming 1-3 years.
Considering the cost and govt intention of increasing upto 50% , Can I propose Basic + Allowance :
Option 1.
1st year @ 40% + 60% ,
2nd Year 45% + 55% and
3rd Year 50% + 50%.
Option 2.
1st Year 45% + 55% &
2nd Year 50% + 50%.
What allowances do you think we should Pay where employee can avail tax benefit. Is employee still getting Tax benefit on following or not or their is some change in Income Tax law.
1. Conveyance upto Rs 800/-
2. Medical Allowance : Upto Rs 15000 subject to producing documents.
3. LTS : Once in 2 year subject to producing documents
4. Education : Rs 200 per child or any changes.
5. Any other allowance
Thanks a lot.
Sir looking forward to your response.
Regards
Dharmendra
From India, Pune
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Creating a Competitive Salary Structure.doc
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