First you have to segregate employees pay roll into (1) coming under TDS and (2)not coming under TDS.

Pay roll should be complete in respect just for final disbursement, and amount credited into each employees personal account as being due to them. By this you have fullfilled the statutory requirements of PF, ESIC, TDS etc. etc.

So your first priority is to pay those deductions into Govt. Account. Since Govt did not bother whether employee get their money or not but timely payment is only counted by them to levy penalty.

Secondly, decide when funds would be available for payment of these and in what proportion, then pay them into their bank account or in cash as the case may be at different dates.

I would suggest that a proportionate payment on every 27th or 28th of each month goes into the employees account as they have to run their family and meets expenses.

Because with the trend on the 1st of each month each one will stand at the door of the employees for their money like milk, news paper, and the like etc.

If you delay the salary, not only your company suffers by financial crunck and liquidity each employees has to undergo mental torture by Home Mininster and also the persons she has to answer.

Always think of the end user how it would help them in their needs.

Regards

Ram

From Saudi Arabia
Starting a HR from scratch requires patience and initiative and you have to do it in totally confidential nature. Otherwise instead of cooperation you will create a doubt in the minds of employees.
1. First start collecting date of company details, their directors, and employees.
2. Format a form to get all the details of employees, Name, fathers name , date of birth, gender(M/F); status: Married or unmarried, their qualification, and experience, previous company details and details of family and children; details of persons to be notified in case of emergency, and telephone no, mobile of the employee at home and contacts.
3. For point no.2 you first getting copies of their CV extract into your file and compile the information yourself. So that you get an idea of your requirements.
4. Now come their Salary particulars, right from their joining and the increment they got ...their present salary
5. The post joined in and the present post they hold by promotion (whether by experience or by additonal qualification)
6. After all the details are gathered and recorded...
NOW COME THE COMPANY POLICY
a. What is your companys policy in giving leave, vacation, leave travel and other benefits
b. What is your companys policy in giving increment. A system of increment every start of the year is a good one as every one will be expecting rise in their pay.
c. Giving Bonus. - ?
d. Leave such as casual leave, sick leave, and previlege leave, etc.
e. Now you have to balance and walk on the rope of how to formulate a casual leave and previlege leave pattern so that the vacation employee holds another employee to take responsibility during his absence.
NOW HERE COMES OPERATIONS;
How you balance the employees into each job and sudden absence should not disturb production of office work.
Once all these are formulated discuss with Dept. Head about their Department and their good and bad tides they faced due to employees absence from work.
This will give you feedback and who would be trained to stand next in case of emergency or in leave of absence.
On the whole HR Head should be a cordially head see the interest of the employees on the first hand and also the companys smooth running on the other hand.
With Regards
Ram


From Saudi Arabia
Dear Malini,
Prepare the salary statement and also the salary slip once for a month. Don't prepare two salary statements and two salary slips. it will lead to Statutory compliance. But when you are unable to pay the salary in one time. So you can always send two cheques to the bank in a interval. Normally bank will not have any problem. There is only one constraint related to the payment date as per payment of wages act. Whenever there is a delay put a notice of the same in the notice board regarding the salary delay. I hope you are clear about the doubts.
Shivaswamy I.K
9620227995

From India, Bangalore
Dear Malini
I support what S.Bhaskar stated. You can provide salary slip once in a month, but make salary payment every two month.
There are no legal hurdle in doing the same.
But this process will be very cumbersome and also very tiring.
Regards
Octavious

From India, Mumbai
Thank you Mr. Octavious
I have given fortnightly payment to all my employees through bank payment (Corporation Bank at Hyderabad), and for remittance of PF, I used to consolidate the basic wages of every employee and derive the amount to be paid for PF. Paysheet will be made in Excel Sheet and Payslip can be prepared manually or by mail merge in MS word format it also can be done.

From India, Kumbakonam
Thank you Mr. Octavious
I have given fortnightly payment to all my employees through bank payment (Corporation Bank at Hyderabad), and for remittance of PF, I used to consolidate the basic wages of every employee and derive the amount to be paid for PF.
Dear Malini
Paysheet will be made in Excel Sheet and Payslip can be prepared manually or by mail merge in MS word format it also can be done. Even in case of any inspection by ESI or PF authorities you can easily explain that the fortnightly payment was arranged for easement of the Employees.

From India, Kumbakonam
The reason for the above subject by organizations is either to evade tax or to guide a against cash flow problem by paying twice, the first salary around is paid on the 14th of the month and the second one around 24th of the same month.On the payroll spread sheets, Both payroll spread sheets will carry half of the allowances,the deductions i.e the pension deduction and the PAYE deductions etc. Then your organization will either have to pay through different banks or pay into a single bank with different company names one as the parent company and the other as subsidiary company. This will also motivate employees at any point in time since money will not be scarce in their account. The computation on the payslip slip is never a problem, because all the allowances and the deductions will be computed together in one payslip to be issued at the second salary payment.
I hope this meets your request.
Best regards
Fola


Dear all,
My company also make salary payment twice a month. On 5th and 25th of the month. On the 5th, employee receive basic salary, it's fix every month. And on 25th, company pay incensive. In fact, everybody agree with this policy.
I am happy to share with you out experience
Thao - from Viet Nam

From Vietnam, Hanoi
  • Your problem seems to be a financial one. Your company is not able to arrange funds to pay salary of all employees in one go. But arranging it in two installments seems to be a solution.
  • One simple solution is to pay part of the salary as salary advance on 15th of every month. This can be paid thru bank there is no problem. You need not deduct and pay any statutory contributions on this advance payment.
  • At the end of the month calculate salary and deductions for entire month as usual, also deduct salary advance paid on 15th from monthly salary. Let this deduction reflect in payslip as well.

From India, Pune
I think the suggestion of Mr.Suresh.K is correct and workable. There is less confusion but convenient for the circumstances explained by Malini.K. kumar.s Bg
From India, Bangalore

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