Manager Human Resources
Recruitment, E.s.i. & P.f
see the salary structure in the current market trends is almost strange for the new employee who is being hired presently. And it also reflect in the salary structure of previous or current employees as every sector is trying to slow down the cost of man power and where upto 10 - 25 % salary diductions are on going trends if someone want to stay employed. These all because of low demand of products or services all around the world.
Apart from the above, some companies are making changes into the leave and travel policies to compensate the cost of manpower as much as possible. As an employee, we dont have any option left for us except acting according to the management if we want to stay employed or say we have gone back into two years back position if we take the example of current salary cut.
Any way we have to cooperate in this situation with this hope that job market will soon change its trands positevely and we will get back what we deserve.
Thats all from my side. Let other say abt this.
Thanks & Regards,
c. Bhushan Sharma
19th March 2009 From India, Nagpur
19th March 2009 From India, Bangalore
19th March 2009 From India, Pune
Till a few months back we were living in a very employee and service / consumer centric envioronment. Which meant that the organizations were doing a lot of things just to attract and retain talent. One of the most common things was giving non taxable components to the employees as a part of their salaries.
For Example: If an employee gets home 40000 per month, then the organization may give him a structure in which almost 20 - 30 % is paid out as reimbursements, like conveyance reimbursement, medical reimbursement, phone reimbursement, sodex ho vouchers etc. So out of 40000, the employee was give approx 8 - 10 k per month as non-taxable salary. The employee doesnt pay tax on this, however the organization pays 6.78% of "Fringe Benefit Taz"to the governement. So for this case the organization pays INR 678 per motnh to the governement as FBT
Imagine big companies having 500 such employees. They were paying huge amounts FBT just to keep the employees happy.
But now the situation is changed and the companies dont want to do it any more. This is another measure of cutting costs of the organization.
19th March 2009 From India, Faridabad
19th March 2009 From India, Hyderabad
19th March 2009 From India, Hyderabad
Friends this is the most lucrative topic to discuss about.
We as an IT - solution provider company are follwing the trend of increasing the variable part of salary. As earlier, we used to follow the structure of 80 - 20, means 80 percent salary and 20 percent variable but now as per our industry scenerio's we have amended to 70 - 30 percent.
We are also keeping a check over the travel and conveyance, to which we have abated.
I percieve that is all i can contribute upon so would welcome some valuable suggestion from the members of HRcite.
20th March 2009 From India, Delhi
Our company is also having a salary cut and we are being cut 20% on basic and the cut is treated as Leave Without Pay. Our HR Head and Accounts Head is new and I just want to know one thing- Should the cut be treated as LWP or as Loss of Pay? When an employee leaves, the salary slip shows LWP, which might tell the prospective employer that this particular employee is irregular. How do we treat this situation?
21st March 2009 From India, Hyderabad
Nice thought in @ right time.
Probably this time is very important for us as HR professionals. In my opinion, one way we have to get the cost to compny as minimum as possible at the same time we have to look into employee perspective where in this current scenario they are not goining to get big hikes but at least expect a tax friendly structure.
So if we remove the reimbursement components, they will have most of the income as taxable and the effective hike on thier paycheques are ineffective.
Your thoughts on the same are welcome.
27th May 2009 From India, Delhi