Hi All, Is there any rules and regulations for giving of Annual increments to the employees that means any fixed percentage we have to give to employees annually. Regards T. Sivakumar
Location: The City Beautiful - Chandigarh
Re: Rules for Annual Increment of S&E
If you salary structure is not linked to the W/S and Consumer Price Index, and unless you are not under contract on a fixed pay for a particular period, it is warranted that the employees are compensated towards the general rate of inflation as well as for the loyalty as well as for the prosperity of the employees. Otherwise, the salary of the employees will be stagnated and the employees (read Talent) will loose interest and start looking for other better avenues of income/employment.
Thanks and Regards
Surendera M. Bhanot
CEO - Avis Software
The City Beautiful - Chandigarh
smbhappy, this is valid answer for me, if my organisation is earning good profit, would I (my colleagues) liable for any share in it according to law. plz. answer.
There are no fixed rules or norms for annual increments. Generally it depends on the following.
1. The job market (What similar industries are paying)
2. The potential of employees you are hiring or retaining.
3. The capacity of your industry to pay.
As indicated by other collegues if you do not consider giving a fair raise then retention of employees will be difficult. Moreover, you may end up hiring employees for higher wages which will be much higher than the increment you have offered. By hiring new employees at higher wages you will upset the existing apple cart (existing loyal employees). So it is an art of fixing the right scale of pay and retaining employees.
You need to constantly update yourself on the market trends.
I am Dibya Ranjan from gurgaon.I HAVE RECENTLY STARTED MY CAREER IN HR FIELD.MY QUESTION IS IF A,B,C,D, & E ARE 5 EMPLOYEES OF MY COMPANY.
USING THESE BASIC DATA KINDLY CALCULATE PF,ESI,GRATUITY AND OTHER THINGS IN EXCEL SHEET AND MAIL ME AT
We appreciate that you are new to the HR field and we welcome you to this forum.
My humble opinion is you can seek guidance but can't expect your fellow colleagues to work for you.
The guidance you require is as follows.
1. PF is computed @ 12% on the Basic Salary. The contribution from Employer side is 12% and is remitted to the EPF/ FPS account and another 12% from Employee's side. However, if the employee wishes to contribute another 12% as Voluntary PF he can make a request to the employer and he can recover it either as 12% or 24% (12 + 12) from Employees earnings for the month. There is a wage ceiling of Rs.6500/-. In other words for those employees drawing salary above Rs.6500/-, the employer can restrict the Employer contribution to 12% on Rs.6500/-.
8.33% from the 12% contribution of the Employee's share is credited to Employee's Pension account and the rest is credited to the PF account.
2. ESI is computed @ 1.75% on the Gross Salary, in your case Basic + HRA + TA and is deducted from the employee's account. 4.75% of the Gross Salary is remitted by the employer. Please note that both the employer and employee contributions should always be rounded to the next higher rupee. In other words even if it is one paise above one ruppee it is considered as two rupees.
3. Gratuity is generally considered for the purpose of arriving at the Total Cost To Company. The calculation of Gratuity per month is arrived as follows Basic salary X 15/26 and divided this by 12 to give you the Gratuity contribution per month. But this amount need not be paid to the employee every month. It is paid only to those employees who have rendered minimum of 5 years of service in your organisation at the time of their leaving. The calculation is Basic Salary X 15/26 X Nr. of years completed service or part thereof in excess of 6 months, this means if the employee has put in more that 6 months of service it is considered as one full year. For example if the employee has put in 7 years and 8 months of service the calculation will be for 8 years.
Why Vote? User validation is extremely important for good content to prosper.