There is no 'da' component mentioned in the salary structure at offices pay roll.
One employee who is working at office asked me aboutda.
In the factory set up (which is under factory act / minimum wages act) we included da component in salary.
Should we re-structure the office staff salary of all including managers into basic, da etc (office under shop and establishment act)
From India, Thana
1One employee who is working at office asked me aboutda.
In the factory set up (which is under factory act / minimum wages act) we included da component in salary.
Should we re-structure the office staff salary of all including managers into basic, da etc (office under shop and establishment act)
From India, Thana
Dear, You need to check up with Maharashtra Minimum Wages notification to see whether there is any notified minimum wages applicable to office staff. If there is, you have to follow it and specify the DA as provided therein otherwise you are free and you need not specify the DA component in the wages paid. KK
From India, Bhopal
From India, Bhopal
In many PVT companies, they have their own salary structures and allowances and that is sometimes differ from company to company and one job profile to other job profile like a company offer TA, DA, HRA etc to one of the employee who also willing to travel for company purpose but to other employee they don't offer TA as there's no traveling added to their profile and also the company do not offer HRA to an employee who is staying in a company provided house or apartment so like that it differ on job profile level and in the same way it may differ from company to company level.
From India, Lucknow
From India, Lucknow
Dear ,
As per the Labour Law acts, Basic & DA are considered as Basic Salary component only.
So even if you have single component of Basic Salary (NO DA), all you have to ensure is that it should not be below minimun wages (Basic + DA), which are revised and circulated on regular intervals.
Regards,
From India
As per the Labour Law acts, Basic & DA are considered as Basic Salary component only.
So even if you have single component of Basic Salary (NO DA), all you have to ensure is that it should not be below minimun wages (Basic + DA), which are revised and circulated on regular intervals.
Regards,
From India
Dear All,
The following is the reply to your query.
1. Please remember that the minimum wage notification is applicable for all the shops &establishments/factories, etc and the component of wage may comprise of only basic, Basic and DA, and Consolidate, which is state specific. That means the wage component varies from State to State. So, it is stated that the employee must get the wage either at par with the minimum wage or more than that.
2. Secondly, you must consider the PF/ESI requirement also, while fixing your component. For ESI, the remittance is made on gross and hence you do not need to worry about the component. Similarly for PF, there is an option of restricting the wage to Rs. 6500/- and please remember the definition of wage as per PF Act includes, Basic, DA and retaining allowance.
3. Thirdly, you have to consider the tax liability also, while fixing the salary component so that the employee is benefitted, if he falls under the tax bracket.
By keeping the above points in mind, you may fix the salary component so that every body is getting the benefits. I will give an example in support of my above points, i.e., if an employee is getting a gross salary of Rs. 25,000/- per month, he will fall under the tax bracket. In such case, kindly fix the salary in such a way that his PF liability is not disturbed as well as the employee is getting the tax benefit from your component. Hence, you may fix his salary like under: -
a) Basic Wage = Rs. 10000/- (40% of gross salary. DA may or may not be included)
b) HRA = Rs. 5000/- (50% of basic considering the cushion given for tax exemption)
c) Conveyance = Rs. 800/- (Considering the cushion given for tax exemption)
d) Medical Re-imbursement = Rs. 1250/- (Considering the cushion given for tax exemption)
e) CEA = Rs. 200/- (Considering the cushion given for tax exemption)
f) Books & Periodicals = Rs. 500/- (Considering the cushion given for tax exemption
g) PF = Rs. 1200/-
h) Food concessions/coupons = Rs. 3000/-
i) Spl Allowance = Rs. 3050/- (The balancing amount after considering the above components)
With the above component, the following will be taken care of: =
1) You are not violating the PF norms since you are paying more than the restricted wage and the current minimum wages of all establishment/industries.
2) You are giving adequate benefits to the employee to get the tax exemption,
Hope, I have not confused you with so much of calculation.
Regards,
P. Vathiraj
Associate Operations Manager
Aparajitha Corporate Services Limited
From India
The following is the reply to your query.
1. Please remember that the minimum wage notification is applicable for all the shops &establishments/factories, etc and the component of wage may comprise of only basic, Basic and DA, and Consolidate, which is state specific. That means the wage component varies from State to State. So, it is stated that the employee must get the wage either at par with the minimum wage or more than that.
2. Secondly, you must consider the PF/ESI requirement also, while fixing your component. For ESI, the remittance is made on gross and hence you do not need to worry about the component. Similarly for PF, there is an option of restricting the wage to Rs. 6500/- and please remember the definition of wage as per PF Act includes, Basic, DA and retaining allowance.
3. Thirdly, you have to consider the tax liability also, while fixing the salary component so that the employee is benefitted, if he falls under the tax bracket.
By keeping the above points in mind, you may fix the salary component so that every body is getting the benefits. I will give an example in support of my above points, i.e., if an employee is getting a gross salary of Rs. 25,000/- per month, he will fall under the tax bracket. In such case, kindly fix the salary in such a way that his PF liability is not disturbed as well as the employee is getting the tax benefit from your component. Hence, you may fix his salary like under: -
a) Basic Wage = Rs. 10000/- (40% of gross salary. DA may or may not be included)
b) HRA = Rs. 5000/- (50% of basic considering the cushion given for tax exemption)
c) Conveyance = Rs. 800/- (Considering the cushion given for tax exemption)
d) Medical Re-imbursement = Rs. 1250/- (Considering the cushion given for tax exemption)
e) CEA = Rs. 200/- (Considering the cushion given for tax exemption)
f) Books & Periodicals = Rs. 500/- (Considering the cushion given for tax exemption
g) PF = Rs. 1200/-
h) Food concessions/coupons = Rs. 3000/-
i) Spl Allowance = Rs. 3050/- (The balancing amount after considering the above components)
With the above component, the following will be taken care of: =
1) You are not violating the PF norms since you are paying more than the restricted wage and the current minimum wages of all establishment/industries.
2) You are giving adequate benefits to the employee to get the tax exemption,
Hope, I have not confused you with so much of calculation.
Regards,
P. Vathiraj
Associate Operations Manager
Aparajitha Corporate Services Limited
From India
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