Pbskumar2006
Sr.manager-hr
Tsivasankaran
Consultant
Katyana
Hr Professional
Chandan2ykpankaj
Manager - Hr
Ramnathmsw1976
Hr ( Generalist)
Shuaibims
Hr Professional
Meenakshi Dutta
Sr. Executive
Mukul Mathur
Human Resource
Bmnandakishore
Hr Sr Executive
Ayonadehr
Human Resources
Kgpmadhwa
Hr Executive
Shish
Consultant
V.S.JANARDHANAN
Personnel Manager
Karnarun
Service
Shashi HRD
Hr Professional
Gawalipankaj
Officer Personnel & Admin
Sivaipm
Property Management
Subrato Banerjee
Service, Manager- Hr
Rvshenvi
Service
+3 Others

I would be framing the CTC structure of our company (software+BPO), i want to know if there is any statutory ruling about the minimum amount of basic that needs to be paid out. say for instance:5000 P.M. is the CTC
Basic: 15,00(30% of 5000)
HRA: 750 (50% of the basic)
Attendance Allowance: 1000
Grade Allowance: 500
Special Allowance:1250
I just want to know if 1500 P.M. of basic is all right or not.
I have the "REVISED MIN WAGES: WB: with me, but I could not get anything from it.
It would be good if you could help me out with this.
What is the position?Which State?
There is no law about Basic we need to deduce from Minimum Wages. Say if Minimum Wages is applicable to the industary and to that job, then whatever is the minimum Basic plus Da prescribed ahould be fixed as Basic
Give more info to help u tounderstand better
Siva
Ayona,
From what I know - your basic needs to be a minimum of 40% of the overall CTC. And HRA is 40% of the basic. This is as per the new regulations.
And as far as I know the minimum wage applies to the overall salary taken home - not the basic or anything.
Hope this helps.
Thx
Chitra
Dear Chitra Minimum wages will include only the Basic and DA as per judgement of SC If you provide other benmefits and still pay lesser Baisc and DA you are nopt meeting the requirements of Law Siva
hello Sivasankaran,
I am in WB, and my company has both the software and the BPO division,
and as specified earlier, I want to know what is the minimum amount that we can give out as basic, is there any statutory ruling regarding that?
I am attaching herewith the revised salary for all the states, I however do not know if thats current or not.
We are a software company and we also have the BP0 division! do let me know.
Is is that DA + basic will have to be 50% of the CTc? we do not have DA though
thanks and regards,
Ayona

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it is not necessary if you paid more than mini.waged than its on you to decide the basic.but if you pay only mini wages than its applicable to total amount e.g basic + d.a, but in this case also p.f. act not define any limit as some company bifurcatinf mini ages into basic(50%) +hra(25%) + conveynce (25%), as in Mini wages act it not define in p.f.act
hi All
I require a small clarification what should be the salary structure for take home salary of 7500/- Rs
Pl help me out inthis matter
How should i consider the ESI (1.75%)
My components
Basic 3000
HRA 1800
conveyance 1500
others 1200
--_________
NEt Home 7500
PT 80
PF
ESI
What should be the ESI and PF Calculation for the above Package Pl heklp me out in this regard
Waiting for a reply
Hi Nanda Kishore
ESI is calculated on Basic, DA, CCA, Conveyance and all the allowance except washing allowance, which is allwable for any manufacturing unit.
That is on the gross earnings of a person. Its again not applicable if person's gross salary is more than Rs. 10,000.
And in case of PF it is given only on Basic.
HRA is calculated at 40% of Basic if its a non-metro city, and at 50% if its a metro)
So ur break may be as below.
Basic 3000 (40% of sfixed salary)
HRA 1200 (40% Basic)
Conceyance 1800
Others 1500
Total Earnings(a) 7500
Deductions:
Employees contribution to PF : 360 (12% of 3000)
Employees contribution to ESI Fund : 131 (1.75% of 7500)
Professional tax : 80
Total deductions(b)571 (360+131+80)
Take Home (a)-(b)= 7500-571= 6929.
Correct me friends, if I am wrong
regards
Debasmita


Dear All, Please note that the Basic wages should be Arround 60% of Gross Wages. Basic wages should not be less than minimum wages of state. Regards. U. C. Kaushik 9911366133
[quote=ayonadehr;387850]hi,
I would be framing the CTC structure of our company (software+BPO), i want to know if there is ant statutory ruling about the minimum amount of basic that needs to be paid out. say for instance:5000 P.M. is the CTC
Basic: 15,00(30% of 5000)---- keep 35% or more % as basic, its necessary for p.f. basic rules. as well as the min.wages act.
HRA: 750 (50% of the basic)----- min.wage means basic+hra&da its must be more than 103.10 rs. per days wages. so keeps yours min.wages more than 2800 Rs.. if the D.A. INCREASE THAN YOU HAVE TO INCREASE YOURS
MIN WAGES..SO KEEP YOURS MIN. WAGES MORE SO YOU DONT NEED YOURS MIN. WAGES REVISE DURRING YEAR..
I just want to know if 1500 P.M. of basic is all right or not. ----- ITS NOT RIGHT WAY TO KEEP BASIC...
I have the "REVISED MIN WAGES: WB: with me, but I could not get anything from it. -0----- FROM WHICH STATE YOU ARE.. ITS UP TO STATE RULES FOR MIN WAGES REVISED...
Hi,
The break-up on the depand minimum wages or state government notification, recently Himachal Government revised minimum wages Rs. 3000/- per month and clearly write and instruct you can pay 95% of total salary in Basic and rest 5% you can use as HRA what to do in suituation ??????
2nd its delhi you can pay 70% in basic and rest 30% should use in HRA only.
PF department may be declare after some time you should pay the pf contribution on minimum wages then how can break-the salary ????????
Manoj
Hi,
Pls guide me on this that how basic is decided for an employee? Is there any statuary policy (govt rule) for this? Is there any fixed % under govt rules?
Looking for quick response from all of you.
Thanx & Rgds,
Meenakshi
Hi Ayona

I could not open the attachement.

However it is immaterial to the reply at present.

1. There is no law giving guideline for Basic salaries or DA.
2. The only law prescribing Basic and DA is Minimum Wagwes Act
3. According to this Establishments shall pay minimum wages as notified .
4. State Govts shall notify for different industries and differents trades/jobs.
5. As per Supreme Court verdict, Only Basic and DA paid by you shall be taken into consideration to verify whether the estavblishment is paying minimum wages or not.
6. IF you are paying 5000 rupees to an assistant then your Basic and DA puttogether shall be equivalent or more than the minimum prescribed. BPOs call centres fall under shops and establishments and you can look at this category.
7 You can pay more
8. There is no law which says that you got to pay pay DA separately. As long as you make adjustments every year in tune with minimum wages,( Basic plus DA) there is no need to pay DA separately
9. My advice would be fix basic and da as prescribed by Minimum Wages to avoid confusion from Labour authirities and revise every year. You can even round off to a higher figure
10 Then payt other allowances.
11. There is no percentage specified by l,aw for this purpose
12 for example, if you are paying wages of 10000 rupees for an assistant, hen you may have to pay approximatley Rs 4000 as Basic plus DA together Blance 60% can be paid as allowances
13. Having said this, we generally recommend50% of the total CTC towards Basic plus DA at lower levels. At higher levels it couild go down to 20% to 30%

Siva
Shops and Establishment Act, Factories Act are two laws which cover most of the companies/ shops/ factories etc. where manpower is employed. When the total staff exceeds 20, almost all labour laws are applicable. So Minimum Wages Act cannot be neglected when deciding the salary structure.

Minimum wages is reviewed once every 6 months by the Labour commissioner Dept. If license for commencing your establishment was issued by Central Govt. agencies, you will be covered under Central Labour Commissioner office, else, State Labour Commissioner. You can get a copy from the respective office.

Minimum wages comprise Basic + Sp.Allowance for 26 days.

Many companies keep Basic and Sp.Allowance very minimal to keep EPF, ESIC expenses for the company low. This is illegal. The Muster is fabricated to authenticate this. Eg. not showing an employee worked for 26 days. They show 10 or 9 days per month.

You may note that EPF or ESIC authorities are not bothered about the Minimum Wages. They only see whether you have paid contribution for the amount in Salary Register. Imagine a situation when your staff file case against your company alleging exploitation. So keep the Basic + Salary more than the Minimum Wages.
Thanks.
Siva
Hi Ayona,
As per the minimum wages act minimum wages for WB is Rs 3764, which comprises of basic+DA. Howeveer, it is not mandatory to have DA in your salary structure.
However, it is advisable to keep 40% of CTC as the basic salary for non-metro and 50% For Metros.
Regards
Thanks a lot Sivasankaran. I still have some doubts I would just jot them down:1) We are an BPO and a software development company, you have already mentioned that BPO would fall under the Shops and Establishment Act. Then what bt the software division? 2) we do not have DA, we only have the basic, so this means that the basic should always be the amount equivalent to the min. Wages as specified.....right?3) We operate in Kolkata, so could you please provide me with the information about where to get the revised min wages form? I downloaded that from this very cite, but thats very confusing.IF would be good if you could clear my doubts.Thanks and Regards,AYona
Hello Dear, I think minimum basic should be 60% of Grose If Grose is 10,000/- Basic 6,000/- HRA 2,000/- Other All. 1,000/-
Dear all, please tell me what w’ll be the minimum wages for delhi employees if it is institute. and if anyones salary is Rs 5000,what will be his/her basic and what will come in other.
Hi Ayona,
I think it's not CTC. Its gross salary. CTC is different from Gross salary. CTC carries all the expenses paid by the company to its employee (i.e., Company PF & ESI contribution). Basic + DA should be 50%, if we don't show DA then basic alone should be 50% from Gross.
Thanks
Guru Prasad K.
Dear Guru Prasad,
If Gross & Net Salary is same , Example if salary is 5000( same gross & Net ), presently there is no deductions then please can you tell me what will be the basic pay and other division like what will be HRA,Special allowance etc.
Dear, Please tell me the minimum wage of the employees if they are working in institute if it is in delhi.
Dear Ayona

Point 1
We are an BPO and a software development company, you have already mentioned that BPO would fall under the Shops and Establishment Act. Then what bt the software division?

Software will also be an establishment. It falls under Shops and establishments

2) we do not have DA, we only have the basic, so this means that the basic should always be the amount equivalent to the min. Wages as specified.....right?

You are right. For the notified positions. Just check whether they have notified a position as software engineer If it is not then that category will not fall under minimum wages.

3) We operate in Kolkata, so could you please provide me with the information about where to get the revised min wages form? I downloaded that from this very cite, but thats very confusing.

These notifications will be available with Labour Department. Easiest way is to approach any Employers Organisation especially CII, FICCI etc They have these copies and they circulate to all memebers. Otherwise walk into Head Quarters of Labour Department It is called Commissioners Office You will find Minimum Wages wing there. You can get a copy.Most of the Unions will have in their office

I suggest you go to commissioners office and get a copy It is authentic

Siva
Dear Ayonadehr,
In reply to your query, i would suggest you tO prepare the breakup in this way that BASIC amount should not be less than MINIMUM WAGES APPLIED TO WEST BENGAL LOCATION.
According to LATEST MINIMUM WAGES OF WEST BENGAL, (NOTIFICATION DATED 7TH APRIL 2008 .THE BASIC AMOUNT SHOULD BE RS 3540--,i. e. per day--Rs 118 ( see in the link below). Rest of the amount u can adjust in HRA, conyeyance or spl allowance.
http://labour.nic.in <link updated to site home>
For further clarification at this, u r most welcome
Dear Friends,

Lot's confusion on this.....would like to add few words..

State government has right to decide the minimum wages, it varies from industry to industry. So first do not give any kind of india untill and unless we dont know the the person is asking for minimu wages for which state...Minimum wages includes Basic+DA, HRA. For Chemical industries in Maharashtra it has been defined in three criteria:
1. Skilled
2. Semi Skilled,
3. Non Skilled

For all above category government has fixed an amount to pay. It could also be varies from location to location, if defines by govt. (see the case of Maharashtra)

Generally an organisation requires most of the semiskilled employees/worker, in this case for a chemical company in Maharashtra it has been decides as follows:

Basic + DA+HRA ( not below than 5% of Basic + DA) = 3258/month, whereas Rs. 648 has been decided as DA (Chemical industry, it can also be varies as per the industry), rest calculation can be done easily and we can get the minimum required amount for Basic.

Best Regards
Deepak Dwivedi
BAsic + DA is fixed as per the Govt rules which varies from nature of the company. as per my knowledge the basic + DA is compulsory while fixing the employee salary. the basic + DA will be approximaitly 3200/- permonth. i.e 2800 + VDA 400 which depend upon the class of city and this may be revised from April 2008.
Hope this will help you.
Ram
HR
Dear All,
Whenever We Talk About Minimum Wages, We Should Think That In What Reference We Are Talking About The Rates. All BPO, IT Companies,pvt Or Limited , All Offices Comes Under " Shops And Establishements".
That, S Why I Have Mentioned The Amount Of Rs 3540 In My Above Query Of "ayonadehr". That Amount Applies To Shops And Establishement Category As BPO Comes In That. The Amount Of Rs 118, Reflects The " Skilled " Category.
There is a rule called 40:60 that means 40% of the gross salary will be taken as basic, maximum 50% of basic will be as HRA and rest amount can be distributed among other components say, conveyance, Education, Medical, Site allowance, CCA, Personal Pay etc. according to your corporate policy.
Hi,
The Minimum wages is different for different Category of employees & also varies from state to state. This is revised every six months by the Labour Department in January & June based on the consumer Price Index. The component for Minimum wages is Basic & HRA. of which only 5 % can be considered for HRA.
In West Bengal the minimum wage for Establishment from 1st Jan., 08 is Rs. 3140.00 for Peon/Messenger/Workmen engaged in Loading and unloading works. This means the Basic salary can be Rs. 3000/- and HRA Rs. 140/-
Regards
Subrato
Dear Friends,
The respective State Government may fix the Minimum Wages for their local industries / establishments. (Go for the Minimum Wages Act). To know the
details of the Minimum Wages please go through the attachment.
Regards,
PBS KUMAR
9848499629

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Hi Ayona,
After gone through all the responses i summarise the same :
1. Minimumwage is differe in differen states
2. Minimum wage is also differen for different position (un skill, skill, semi skill, matriculate, graduate (white colour job)etc)
3. Any basic should notbe less than Minimum wage (i.e Basic+DA), here in pvt sector you will rarely found DA in any organisation.
4. after fixing the Minimum basic you can put other amount in any category (like HRA-it depend on City but in any case it should not be more than 60%, Transport maximum of Rs.800/- like this.
5. as well as Bonus is concern it should not be part of gross, but could be count in CTC .
If still have any query, you can mail me or call me on +91-9818067206.
Hope this will clear your ideas.
Hi Ayona,
After gone through all the responses i summarise the same :
1. Minimumwage is differe in differen states
2. Minimum wage is also differen for different position (un skill, skill, semi skill, matriculate, graduate (white colour job)etc)
3. Any basic should notbe less than Minimum wage (i.e Basic+DA), here in pvt sector you will rarely found DA in any organisation.
4. after fixing the Minimum basic you can put other amount in any category (like HRA-it depend on City but in any case it should not be more than 60%, Transport maximum of Rs.800/- like this.
5. as well as Bonus is concern it should not be part of gross, but could be count in CTC .
If still have any query, you can mail me () or call me on +91-9818067206.
Hope this will clear your ideas.
Regards
Arun
Siva Sir is correct. Minimum wages include Basic+DA & it is different in diff. states & it also differs according to the type of industry. For eg Auto industry has higher wage rates in comparison to food industry.
Deara Chirta ,
Mr.T.Sivasankaran is absolutely right while stating the minimum basic as per law he is clearly stateed that the Minimum Basic = Minimum wages+D.A. I have gone through the U.P. & Haryana state ruling about the Minimum basic, as per the guidelines you can not keep basic low then minimum wages.
with regards
shish ram uniyal
junior member citehr

Hi,The Basic should not be less than the minimum wages which is different from state to state because the minimum wages act is implemented on the all organisations/shops/Bpos and officeses.No body can not pay the less than amount of minimum wages .for Pf deduction : Pf should be deduct on the the minimum wages as per the supriem court decision. Basic wages= Minimum wages .For the Payroll all the component of salary should not be more than the basic wages. Basic will be the higher part of the salary it should be 50% or 40 % of the Gross salary.Regards,Jalaj
Dear All,

Recently Himachal Pradesh has fixed minimum wages Rs. 3000/- per month alongwith the conditions is the Basic salary not less that 95% of minimum wages, and HRA only 5% in the Himachal Pradesh.

HRA 40% and 50% funda only applicable for the income tax department like if you lived at metro city then you can HRA tax exemption 50% on basic and not metro city only 40% in place of 50%.

Delhi government has fixed the minimum wages with effect from as under:-
Unskilled=Rs. 3633/-,
Semi-Skilled=Rs.3799/-,
Skilled=Rs.4057/-

Punjab also fixed is Rs. 2620/- per month with effect from 01/03/2008.i.e. only Rs. 50/- revised in all grades as well as Unskilled, Semi-unskilled uper, etc.

For more query please purchase a short note of minimum wages from any book stall now very short note avalable on net or book stall.

Thanks & regards
Manoj Kumar
teotiamanoj@gmail.com

Compensation and Bnefits a Total Guide
Hi am new to this forum jus joined ,wouls like know (a to z info about C & B ) i.e compensation and benefits, can any one help out plz its very important and needed despertately
Dear Siva,
Will appreciate if could pls guide me on some of these points. I'm bit confused now...and not getting correct way to learn how to prepare the salary break-up.
Our company falls under shop&Estb act. So how much baisc should be?
What should be the break up if CTC is 16250/-?
Pls go thru below mentioned and correct me if m worng at any point (this is wht we follow).
Basic : 30%
HRA : 40%
CCA : 15%
Conveyance : 800/- max
special Allownce : rest of the CTC

PF : employer
Basic : 12%
Employer contri : 12% + 1.61% S/charge

ESI
Gross : 1.75%
Company contri : 4.75%
Looking forward to hear from you...
Best Rgds,
Meenakshi

Hi PPL,
Hope this will clarify all the questions related to CTC salary working format.
If you need any clarification on this pls do let me know...
I have just shared the format FYI. The calculation will not be the same for all the companies. It will be similar to this....
Regards,
Ramesh.A
HR Specialist
Chennai

Attached Files
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Dear Friend
Please follow following principle while bifurcating CTC
60% of Gross should be basic
40% of basic should be HRA ( incase of metro cities) other wise depending of class of cities
remaining amount you can put different heads prevailing in your company. there is no any statutory obligation ( such as all purpose allowances, conveyance allowances, medical allowances, washing allowances etc)
But generally PF authorities will check that 60% of gross should be basic component
Rest of you may be aware such as PF , ESI , Professional tax etc
Best regards
Ravindra Shenvi
Hi,
Every Organization has it own Policies of the Saalry Break-Up.
If you are formulating a new policy for salary break up then keeping basic 40 % you can divide the rest of the amount under various components to arrive at the 100 % of the amount.
Eg.
Basic 40%
HRA 10%
Office wear allow 10%
Conveyance 20%
Medical 10%
Other 10%
Or various combinations for the various Salary components.
This Break up can be created for the salaried employee / s only and not for the wage paid employee / s (They can be paid as per the Minimum Wages Act)
Regards,
Sandip
Thanks SIva, That was very informative. One point: You have mentioned that if the position is that of Software Engineer, then the Min. wages would not be applicable.
Could you please elaborate on that?
Thanks and regards,
Ayona
Dear All
I have also a doubt regarding Minimum wages & basic -
1. The basic is equal to minimum wage or not if the basic wages is not equlant to minimum wages how we calculated the Pf & ESI which is compulsary to calculate on basic.
2. For example - the minimum wages for a skilled person in UP is Rs.150/- according that the basic is equal to Rs. 4500/- per month & if the salary structure for any employee is like that -
Basic - 2795.00
Educational Allow.-200.00
HRA-1118.00
Medical Reimbursment -700
Other Allowance - 108.00
Transport allow - 800.00
PF -
Dear friends

I have also some doubt between minimum wages & Basic pay -

1. Basic is equalent to the minimum wages or not.
2. As per Central Govt. current minimum wages is Rs.150/- daily for skilled person in UP. according to that the salary or wages of an employee will be equal to Rs. 4500/- +DA ( Applicable 30 % on basic)
3. For PF & ESI calculation, It is calculated on basic salary of the employee & here as I know the basic is equal to minmum wages.
4. What is the corect way of calculating the basic is that equal to minimum wages or it can be less than that.

For Example i m provinding one Salary break up pls clarufy me is that correct as per Law or Not -
Earnings
Basic - 2795.00
EA - 200.00
HRA - 1118.00
MR - 700.00
OA - 108.00
TA - 800.00
-------------------
5721.00
-------------------
Total Deductions -
PT - 60.00
PF - 335.00
--------------------
395.00
--------------------
Net Salary in Hand is : 5326.00

is that the correct beak up of ssalary as per law or not ?

Waiting for your prompt reply.

Thanks & Regards

Vijay
thanks Katyana, that was very informative! I still have few queries:
As I was going through the attachment that you sent, I could not find out in which category, our organisation (A BPO and a software development company: Kolkata) would fall into.
There, we have categories like commercial establishments other than shops.
so wherefrom did you get 118.00 as the rate per day? It would be good if you could elaborate a little bit on that.
B Regards,
Ayona
Dear Guy

What we follow : Basic + DA = 60% from the current CTC. If u dont follow DA then you can fix your Basic with the range of 20% to 40%. Plus other Allowances. The Higher the Basic + DA the Higher the PF you are going to pay.
Regards
Arunkumar.M
Pondicherry
Dear Ayona,
As per the instructions of EPFO, We cant bifurcate the minimum salary. PF Should be deducted in full minimum wages applicable to the each category of employee in that state. Instructions are already issued in Himachal Pradesh & Haryana EPFO.
Hence it is ideal to keep the (basic+da) salary on minimum wages.
Rgds
Saroj Kumar
Dear Friend,
Basic and DA are combined in Private industry and is set as Basic only for any further statutory calculations.
Basic should cover an employee minimum expenses.
It can be on an average set as follows.
Un-skilled employees <=3500
Skilled Employeess <= 4000
Highly skilled <=5000
Case 1)Let us suppose a employee joins with salary Rs.4000
Then give his Basic alone as Rs4000
Case 2)Let us suppose an employee monthly salary is Rs.5000
Set his basic as Rs.4000 and Other Allowance as Rs.1000
Case 3) If an employee Joins with salary Rs. 6000
Basic : 4000
HRA : 1000
MA : 500
TA : 500
Gross Rs. 6000

the break up for these salary is only for basic as we pay PF and ESI and the break up do not give the employees any benefits as they do not come into taxable limit.

Let his salary be Rs. 10,250
Basic: 7000
HRA : 3000
Others: 250
here total is 10,250 the advantage is the employer need not pay his PF or ESI contribution.

For the same structure of Rs. 10,000 if the company is paying PF and ESI
Basic: 5000
HRA: 2500 if office is in chennai, Mumbai, Kolkatta or Delhi else 40% of Basic
TA : 800
MA : 1250
LTA : 450
Gross: 10,250

Regards,
R.Ramamurthy
Hello Quereshi,

Please take a look at the CTC structure that I am framing: say for example that the monthly CTC is Rs. 12,000 P.M. , so the CTC break up would be as follows:
Basic: 3600 (30% of 12,000)
HRA: 1800 (50% of basic)
C.A.: 800 (till this amount this is tax free)
P.F. 1440 (12% of basic).......employer's contribution
S.A.: 4360 (balance amount)
Less:

Employee's contribution: 12% of basic

Please take a note of the following points:

1) Basic + DA must be equivalent to the min wages prescribed by the commissioner's off (if you do not have D.A. then the basic alone should compensate that....this would differ from state to state)
2) HRA should always be 50% of the basic (In case of metro city) and 40 % on the same in case of non metro city
3) Conveyance Allowance (C.A.).should be 800 P.M. as till that amt it is tax free.

You can also include other components like LTA (Leave Travel Allowance); CCA (City Compensatory Allowance)

Please let me know if you still need further clarifications.

Thanks and regards,

Ayona
dear
\
please note that there is no such guideline for framing the basic
the main point which is required to be kept in mind is that whether you are paying minimum wage to that candidate or not.
Also if PF is applicable to your company please make sure that the basic which you give should not be less than what the candidate was getting earlier(with previous companu) if he has worked previously (Though it is not mandatory but try to adjust accordingly)
it is always better to frame a policy indicating the range of basic salary for various levels
e.g. junior level 1500~2500
Medium Level 3000~5000
like that
Cheers
Hi,
Please let me know the writen rules from the PF department as you may be deduct PF on minimum wages, pf department only write you can diduct PF @ 12% from basic, any body send to me any notification / rules as such the employer to eligible pay PF @ 12% on minimum wages (specefic=minimum) ?
Only esi is applicable on minimum wages employer and employee share (you can show the break-up as Basic 70% and rest HRA in case the minimum wages) otherwise your salary is Rs. 20000/- then you make as under:-
Basic 50% of Rs. 20K and 40% (in non metro city) and 50% (in metro city) HRA can calculate on basic, rest you can pay as medical reimbursement @ Rs. 15000/- Per Anum {as per income tax department, if you provide the medical bills etc.] and you pay as transport allowance and special allowances. This is the organisational policy, don't worry guy's.
If any have writeen rules from government department please show me the details.
Thanks & regares
Manoj

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