We have an employee whose salary is Rs.18000 p.m. The company is showing Rs.6000/- as HRA for that person. I know it is more than what it should be.
Is it ok to show the breakdown structure for the employee as follows:
Basic : 10000
HRA : 6000
Conveyance : 1600
Others : 400
Do recommend if the above structure can be changed.
Your early inputs would help us to sort this issue.
From India, Bengaluru
Is it ok to show the breakdown structure for the employee as follows:
Basic : 10000
HRA : 6000
Conveyance : 1600
Others : 400
Do recommend if the above structure can be changed.
Your early inputs would help us to sort this issue.
From India, Bengaluru
Dear Anonymous
There us no flaw with your structure. There are no hard line rules. However the structure is formed considering Income Tax provisions to extend legitimate benefit to employee. Another rule that the Basic should not be less than the prevalent minimum wages.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
300There us no flaw with your structure. There are no hard line rules. However the structure is formed considering Income Tax provisions to extend legitimate benefit to employee. Another rule that the Basic should not be less than the prevalent minimum wages.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
Dear member,
What is the nature of your industry? I ask this question because we need to ensure that the basic salary is at par with the minimum wages as prescribed by the state government. It can be more but not less.
You have fixed basic salary at Rs 10,000 but then what if the minimum wages are more than that? Therefore, please verify once again otherwise, you might face problem when labour officer or PF Enforcement Officer inspects the salary records.
Thanks,
Dinesh Divekar
From India, Bangalore
What is the nature of your industry? I ask this question because we need to ensure that the basic salary is at par with the minimum wages as prescribed by the state government. It can be more but not less.
You have fixed basic salary at Rs 10,000 but then what if the minimum wages are more than that? Therefore, please verify once again otherwise, you might face problem when labour officer or PF Enforcement Officer inspects the salary records.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Anony,
Assuming that you are from bangalore, it is not ok to have the structure as mentioned by you. The basic pay should be at least equal to or more than the minimum wage applicable in your state and as per the skill level. The MW for the state of Karnataka starts from Rs. 12,200; hence basic pay has to be equal to it or more than that. It can not be lower than the Minimum wage.
Regards
Rahul
From India, Delhi
Assuming that you are from bangalore, it is not ok to have the structure as mentioned by you. The basic pay should be at least equal to or more than the minimum wage applicable in your state and as per the skill level. The MW for the state of Karnataka starts from Rs. 12,200; hence basic pay has to be equal to it or more than that. It can not be lower than the Minimum wage.
Regards
Rahul
From India, Delhi
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Creating a Competitive Salary Structure.doc
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