Respected team member's,
Please suggest me what's correct and what's wrong structure.
Our Previous year structure components are monthly (CTC, Gross, Basic 70%, HRA 15%, Con. 15%, PF deduction EPR 13% EMP 12%, ESI deduction EPR 3.25% EMP 0.75%, Net in hand)
Our Current year structure components is monthly (CTC, Gross, Basic 70%, HRA 15%, Con. 15%, PF deduction EPR 13% EMP 12%, ESI deduction EPR 3.25% EMP 0.75%, Gratuity(Basic*15/26/12), Net in hand)
Example:
Previous year structure details (CTC-19000, Gross-16911, Basic-11838, HRA-2537, Con.-2537, Pf deduction EPR-1539 EMP-1421, ESI deduction EPR-550 EMP-127, Net in hand-15365)
Current year structure details (CTC-20900, Gross-18062, Basic-12643, HRA-2709, Con.-2709, PF deduction EPR-1644 EMP-1517, ESI deduction EPR-587 EMP-135, Gratuity-608, Net in hand-16410)
Please let me know this year implement structure correct or not. if any changes please suggest me.
From India, New Delhi
Please suggest me what's correct and what's wrong structure.
Our Previous year structure components are monthly (CTC, Gross, Basic 70%, HRA 15%, Con. 15%, PF deduction EPR 13% EMP 12%, ESI deduction EPR 3.25% EMP 0.75%, Net in hand)
Our Current year structure components is monthly (CTC, Gross, Basic 70%, HRA 15%, Con. 15%, PF deduction EPR 13% EMP 12%, ESI deduction EPR 3.25% EMP 0.75%, Gratuity(Basic*15/26/12), Net in hand)
Example:
Previous year structure details (CTC-19000, Gross-16911, Basic-11838, HRA-2537, Con.-2537, Pf deduction EPR-1539 EMP-1421, ESI deduction EPR-550 EMP-127, Net in hand-15365)
Current year structure details (CTC-20900, Gross-18062, Basic-12643, HRA-2709, Con.-2709, PF deduction EPR-1644 EMP-1517, ESI deduction EPR-587 EMP-135, Gratuity-608, Net in hand-16410)
Please let me know this year implement structure correct or not. if any changes please suggest me.
From India, New Delhi
There is no issue in the revised salary structure because there is increase given in every component of salary. Only addition is gratuity, and even though the same has no relevance but would only show the CTC at a higher value, including the same would not lead to non compliance. This is because the CTC as a concept of salary itself has no legal sanctity. Therefore, you can include any figure, any component in it, and so long as the contributions payable by the employer towards PF, Bonus, Gratuity etc are calculated on the notified minimum wages, there will not be any legal issues. In your current and proposed salary (CTC) structure also, there are mismatches in PF and Gratuity because both are calculated on basic salary alone, but it can be challenged in future.
From India, Kannur
4246From India, Kannur
There are two issues. PF deduction should be on Basic and Conv instead only basic subject to maximum 15,000/- PF Gross per month.
Gratuity cannot be paid on monthly basis. It is a terminal payment and termination for what so ever reason after completion of 5 yrs service except death cases. It is always calculated on the basis of last drawn Basic not on every month. If it is every month, the employees will be deprived by paying less and also non compliance.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
Gratuity cannot be paid on monthly basis. It is a terminal payment and termination for what so ever reason after completion of 5 yrs service except death cases. It is always calculated on the basis of last drawn Basic not on every month. If it is every month, the employees will be deprived by paying less and also non compliance.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
It is true that gratuity is a terminal benefit payable at the time the employee leaves the company, and that also after rendering at least 5 years of service. But at the same time, it is an accepted practice to show it in the remuneration slip, called Cost to Company, just because, at the end of the day, it is going to be a cost to the employer. That is why I said that CTC has no legal sanctity.
From India, Kannur
From India, Kannur
In the recently introduced Codes certain aspects of salary components are dealt to some extent. You are free to decide what the pattern should be in place. But highlighting the CTC structure now a days increasingly not preferred by job seekers at a time they started calculating the Gross and Take Home pay. This is an era in which employees switch jobs more frequently, many a times < 5 yrs of 'continuous service' resulting denial of valuable 'gratuity' kitty. There is least possibility of gaining 'gratuity' if the employee does not complete the required 5 yrs of 'continuous service' as per the Gratuity Act. And 'gratuity' is to be computed over the no.of completed yrs. of continuous service. For instance candidate 'A' switches randomly 5, 6 employers with less than 5 yrs each, in aggregate he completes his superannuation without qualifying for payment of 'gratuity' at all during his entire career. Say loss of about Rs.20-25 lakhs.
Secondly high percentage of basic pay, say 70, 75% not desireable as this will impact other components which form basis for computing other allowances such as DA/HRA, EPF etc.
From India, Bangalore
Secondly high percentage of basic pay, say 70, 75% not desireable as this will impact other components which form basis for computing other allowances such as DA/HRA, EPF etc.
From India, Bangalore
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