Dear all, As per which law the salary structure is defined and tell me how to construct salary structure for Andhra Pradesh state _start up company groceries business
From India, undefined
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5From India, undefined
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No law relating to wages/salary defines salary structure or sets down the components of salary or wage. For instance, the Payment of Wages Act prescribes the periodicity in payment of wages, i.e., wage periods, the mode of its payment, the deductions that could be made from the wages, and the like. The Minimum Wages Act, 1948, fixes the minimum rates of wages and their periodical revision in respect of the employments brought under its schedule, the rates of overtime wages, etc. The Equal Remuneration Act, 1976, ensures equal wages for equal work irrespective of sex. The Payment of Bonus Act, 1965, prescribes the compulsory payment of a bonus to employees drawing a salary up to a certain limit, the method of calculation of the bonus, and the like.
Therefore, wages or salary, in general, would mean the monetary compensation as well as the value of certain amenities provided by the employer payable to the employee at the end of the wage period for the services rendered by him as agreed under the contract of employment. As such, wages or salary would include the sum total of all monetary and non-monetary payments and therefore would be a single package. The practice of breaking the single package into components slowly came into vogue for the purpose of employee retention, and therefore it is not possible to precisely define any wage/salary structure. But the components could be just explained as basic wages that would constitute a major portion and other allowances to compensate for the periodical hike in the cost of living and other necessary expenses to be incurred by the employee on account of his employment like housing, conveyance, etc. Even the wage structure can be at times localized like the payment of hill allowance, winter allowance to employment in hilly regions.
That's why only certain components in the wage structure are taken into account for determining certain benefits of employment like gratuity, bonus, etc., which are considered as indirect financial commitments of the employer.
From India, Salem
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Therefore, wages or salary, in general, would mean the monetary compensation as well as the value of certain amenities provided by the employer payable to the employee at the end of the wage period for the services rendered by him as agreed under the contract of employment. As such, wages or salary would include the sum total of all monetary and non-monetary payments and therefore would be a single package. The practice of breaking the single package into components slowly came into vogue for the purpose of employee retention, and therefore it is not possible to precisely define any wage/salary structure. But the components could be just explained as basic wages that would constitute a major portion and other allowances to compensate for the periodical hike in the cost of living and other necessary expenses to be incurred by the employee on account of his employment like housing, conveyance, etc. Even the wage structure can be at times localized like the payment of hill allowance, winter allowance to employment in hilly regions.
That's why only certain components in the wage structure are taken into account for determining certain benefits of employment like gratuity, bonus, etc., which are considered as indirect financial commitments of the employer.
From India, Salem
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In the modern business scenario, there is an unnecessary quest for structuring the salary. The new generation companies don't consider that what is agreed to be paid for the services of the employee is the salary. In fact, if an employee takes one or two days' leave without pay, it will be the gross salary that will be taken to find out the salary to be deducted for these days. This itself proves that it is the gross salary on which you should calculate the statutory payments and contributions.
Unfortunately, for contributions to be made over and above the salary, the employer will take a fraction/component of the salary, called basic salary, and for deduction for absence from work, he will take gross salary. Even HRA is excluded only if it is a perquisite falling outside the salary. If an employee is residing in a house, the rent of which is paid by the employer separately, then it is an allowance and is paid in full even if the employee was on leave without pay for certain days.
Under our case, even the newspaper allowance and education allowance are proportionately deducted if the employee is on LOP!
From India, Kannur
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Unfortunately, for contributions to be made over and above the salary, the employer will take a fraction/component of the salary, called basic salary, and for deduction for absence from work, he will take gross salary. Even HRA is excluded only if it is a perquisite falling outside the salary. If an employee is residing in a house, the rent of which is paid by the employer separately, then it is an allowance and is paid in full even if the employee was on leave without pay for certain days.
Under our case, even the newspaper allowance and education allowance are proportionately deducted if the employee is on LOP!
From India, Kannur
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