Hi, good morning to all, this is Rahul here from Chennai. I'm new to the HR profession and recently joined a manufacturing company with locations in Kolkata, Gujarat, Andhra Pradesh (manufacturing units), and Mumbai, Chennai (business centers). The total manpower is 80, and until now, there has been no HR department.
My Doubts are as follows:
1) We don't have a systematic salary structure (e.g., only 5% of HRA is given on basic salary for 40 staff). Is it compulsory to give HRA to all staff, or can it be modified to be given to some staff only? If yes, why is it compulsory?
2) Currently, salaries are processed under different heads, i.e., Basic, HRA, Conveyance, Medical, Tiffin, Shift allowance, phone bills, performance allowance, annual bonus (PA), and Attendance bonus (PA). Management doesn't want to show differences in these heads, so they are asking me to consolidate them into only three components:
a) Basic
b) General allowance (which includes: HRA, Conveyance, Medical, Tiffin, Shift, and phone allowance)
c) Performance allowance
d) Annual bonus (paid annually)
e) Attendance Bonus (paid annually)
So kindly let me know your suggestions on whether we can process it like this or not. If not, are there any legal components, and what are they?
I am waiting for your suggestions.
Thanks & regards,
Rahul
From India, Madras
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My Doubts are as follows:
1) We don't have a systematic salary structure (e.g., only 5% of HRA is given on basic salary for 40 staff). Is it compulsory to give HRA to all staff, or can it be modified to be given to some staff only? If yes, why is it compulsory?
2) Currently, salaries are processed under different heads, i.e., Basic, HRA, Conveyance, Medical, Tiffin, Shift allowance, phone bills, performance allowance, annual bonus (PA), and Attendance bonus (PA). Management doesn't want to show differences in these heads, so they are asking me to consolidate them into only three components:
a) Basic
b) General allowance (which includes: HRA, Conveyance, Medical, Tiffin, Shift, and phone allowance)
c) Performance allowance
d) Annual bonus (paid annually)
e) Attendance Bonus (paid annually)
So kindly let me know your suggestions on whether we can process it like this or not. If not, are there any legal components, and what are they?
I am waiting for your suggestions.
Thanks & regards,
Rahul
From India, Madras
Acknowledge(0)Amend(0)
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Salary structure CTC 15000.xlsx
Innovative HR Practices-.doc