Dear All,
Kindly clarify about one month notice pay:-
If my Gross salary is Rs. 10000/-
Basic- Rs. 3000
HRA - Rs. 1500
Other Allowances - Rs.4500
Conveyance -Rs.1000
Please clarify whether One month notice pay is Rs. 10000 or some of the salary components should be deducted from the gross salary??
Thanks
Nivya
From India, Madras
Kindly clarify about one month notice pay:-
If my Gross salary is Rs. 10000/-
Basic- Rs. 3000
HRA - Rs. 1500
Other Allowances - Rs.4500
Conveyance -Rs.1000
Please clarify whether One month notice pay is Rs. 10000 or some of the salary components should be deducted from the gross salary??
Thanks
Nivya
From India, Madras
Dear Nivya, One month notice pay is to considered as Rs,10,000/- unless specified otherwise. R.N.Khola
From India, Delhi
363From India, Delhi
Thank you very much Mr. Kohla. Can you please tell me the rule for determining the salary component- Basic pay.I heard that it is usually calculated as 30% of the gross salary. Is this correct? Please assist.
Thanks
Nivya
From India, Madras
Thanks
Nivya
From India, Madras
Dear Nivya,
Pay means all remuneration capable of being expressed in terms of money be payable to a person for work done in an establishment. You may go through the definition of wages [section 2(vi)]under the Payment of wages Act, 1936. I have already submitted that if it is not specified otherwise then full months wages should be given as notice pay.
R.N.Khola
From India, Delhi
Pay means all remuneration capable of being expressed in terms of money be payable to a person for work done in an establishment. You may go through the definition of wages [section 2(vi)]under the Payment of wages Act, 1936. I have already submitted that if it is not specified otherwise then full months wages should be given as notice pay.
R.N.Khola
From India, Delhi
Dear Mr. Kohla,
Thanks for your answer and your valuable time. I am clear with one month notice pay.
The other question which I tried to address in the previous thread is whether there is any particular % which should be taken as basic..or it is at company's discretion? for eg: if gross is 6000, min how much proportion shud b taken as basic??
Thanks Nivya
From India, Madras
Thanks for your answer and your valuable time. I am clear with one month notice pay.
The other question which I tried to address in the previous thread is whether there is any particular % which should be taken as basic..or it is at company's discretion? for eg: if gross is 6000, min how much proportion shud b taken as basic??
Thanks Nivya
From India, Madras
Dear Nivya,
In my opinion this is as per company policy but if any employee is covered under any of the law which give him protection in regard to fixation of minimum basic then we should adhere to that basic. For example if an employee is covered under minimum wages Act & if his basic is fixed under this Act then we are to fix that basic as given in the notification.
R.N.Khola
From India, Delhi
In my opinion this is as per company policy but if any employee is covered under any of the law which give him protection in regard to fixation of minimum basic then we should adhere to that basic. For example if an employee is covered under minimum wages Act & if his basic is fixed under this Act then we are to fix that basic as given in the notification.
R.N.Khola
From India, Delhi
Dear Nivya,
Greetings for the day :)
Basic pay is aleast 30% of gross salary.
In Non Metro it is normally 40% and IN metro's it is calculated as 50% of gross salary.
I want to clear one thing which Mr. Khola also mentioned normally company deduct notice pay as gross but it shall be calculated on basic beacuse basic is the fixed component in salary and allowance can be changed.
Most of the MNC follow basic salary notice period pay deduction
From India, New Delhi
Greetings for the day :)
Basic pay is aleast 30% of gross salary.
In Non Metro it is normally 40% and IN metro's it is calculated as 50% of gross salary.
I want to clear one thing which Mr. Khola also mentioned normally company deduct notice pay as gross but it shall be calculated on basic beacuse basic is the fixed component in salary and allowance can be changed.
Most of the MNC follow basic salary notice period pay deduction
From India, New Delhi
It varies from company to company.....Most of the companies consider basic pay alone. If its a mid-sized company then there are chances that they take gross pay into consideration. Anyhow talk to ur HR Head to find out whether its basic pay or Gross.
Even many companies dont allow there employees just to walk out paying off their notice period so check on that too.
From India, Madras
Even many companies dont allow there employees just to walk out paying off their notice period so check on that too.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Company Letter for Completion 01 Month Notice.docx
No GST on Notice Pay Nominal Canteen Fees (TOI - 25-Oct-2022)_1. jpg