Hello everyone, I'm here again with a new doubt. I hope will get the correct resolution on this.

So, as my company is paying to the employees based on Hourly pay. Here is how we pay to somebody:

for 30 days: 8 hours per day * Total number of working days=
8*26= 208 hours. (It covers Sunday's. Paid leaves are added manually)

Per hour rate= CTC/208

Salary for the month= Total number of hours emp worked for that month* per hour rate + leaves

Now, this is the salary distribution structure of my company. Now, here are the 2 queries I have:

1. How can I create the salary structure for this and what are the things to be added in the salary slip of the employee.
2. If I'm creating only a single component in the Salary slip which is "Time Sheet Component" and mention the complete earned amount based on an hourly rate on the salary slip and put deduction of Income-tax only, does it create any issues in Income tax for the employee? Employees will be able to claim the loans using those salary slips?

I hope the issue is clear, let me know if anybody needs any other information on this topic, to clarify my doubt. Thanks !!!

From India
Ceo-usd Hr Solutions
Payroll & Labour Law Consultant

Can anyone help me in this ? I’m not getting any update on this.
From India
There are lot of confusion in the post. Usually for any organization there is a remuneration structure- it may be monthly, daily, hourly etc. For hourly rated employees in a pay structure where on monthly basis Basic, HRA, Other Allowances are paid, there should be hourly rate for each item to be determined by the employer. It is not clear how Per hour rate = CTC/208. CTC is usually all components of remuneration paid to any employee whether hourly basis, daily basis, monthly basis or yearly basis.

Please clarify in details the whole remuneration structure including payment timings and your specific queries to get proper reply from the seniors.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi
You have not mentioned employees are on Payroll or on contract basis.
Secondly , this type of salary structure is not normally followed by company. This will lead to confusion, also please note that at the time of assessment of any department [ PF/PT/ESIC, etc] you will facing difficulties to explain them.

Kiran Bhambid

From India, Mumbai

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