Hello guys i need some advice from you🙏🏻.
I am starting a Pvt ltd company, My question is I have to appoint 20 employees but my company will not make a profit for 8 to 10 month but I still have to pay to employees then what is the limit of salary by rules I can pay them

From India, Pune

You can start your activities by complying with the minimum wages notified by the State Govt. for your industry and as per the skill levels of the employees being inducted. In addition, you need to comply with PF & ESI Scheme, Labour Welfare Fund & Professional Tax requirements as is applicable. So prepare proper estimate on all these factors and you have ensured the required legal compliances. You may plan accordingly
From India, Mumbai
If you have registered your company, the next steps would be planning, organizing, directing, and controlling. As far as HR is concerned, based on the state in which you operate, there are a number of rules to be followed. Compliance is a big deal in India to run any business smoothly. At times, people may find it easy to make profit but tough to fulfill compliance requirements.

Recommend a quikfix for you. With this you will get expert advice, a reliable platform to store employee data, manage salaries, take care of compliance, and all sorts of reports. You might have heard about greytHR. It is one of the most popular online HR Payroll Solution for Small Businesses and Startups. There is a starter plan (Free plan with limited features) and probably it suits you for the next 10 months. In case of advanced requirements, you can upgrade to higher plans, anytime.

From India, Bangalore
You need to pay your staff and workers salary that is above the minimum wages specified for your industry in your state. Note that this is revised every 6 months and you need to pay the higher wages as soon as they become applicable.

In addition, you will need to pay Overtime if they work beyond 9 hours a day or 48 hours a week. They are entitled to bonus @ 8.33% of Basic + DA, payable once a year (8 months from end of the financial year) and you also need to pay statutory dues (PF, ESIC, PT)

Please note that you may not be able to get people to work for you at minimum wages, you need to check the market wages for your industry.

From India, Mumbai
Dear Colleague,

As rightly guided by our Colleagues, you need to pay the Statutory Minimum Wages under the provisions of The Minimum Wages Act 1948 applicable to your nature of Industry. Check whether you are able to get Talents for this wages level. You need to mandatorily cover the employees for PF and ESI.

What best possible is that you may have a mix of Work force like Regular employees who have experience and support your business from day one ( pay them slightly more than minimum wages of Minimum Wages Act) + Few Probationers for one year ( pay then minimum Wages exactly or consolidated pay not less than minimum wages ) + Few Apprentices or Trainees on Stipend basis for one year( stipend may be less than Minimum Wages). In second year these Trainees can become Probationers and then to regular in the 3rd year. This mix will give you some cost advantage till your reach your break-evens and to stabilize your business. You may also take few Off Roll option by paying minimum wages through Manpower Agencies ( contract arrangement) for those activities which are essential but not brining revenue to your business or non-core to your business.

All the very best for your successful endeavor and success.

From India, Chennai
The emoluments and entitlements that an employee must get depends on type of business you are doing and should be at par with government rules and regulations under various applicable laws.
Min wages, DA spl allowances,Hra, epf esic, Mlwf,Leave with wages, bonus, other fri ge benefits as applicable will give you an idea to arrive at ctc of employees.
You can take the help of business consultants in this regard.

From India, Vadodara
Dear "Anonymous' CitHr Member,

Nothing more needs to be said than what our expert contributing members have noted their opinions above. As for me, I appreciate most the comments of Dr. P. Sivakumar as it demonstrates the best solution.

At the same time I would request Mr/Ms Anonymous to validate the comments of contributing members who have dedicated their valuable time and expertise for you. You posted your thread on 12.01.2022 but till date i.e. 19.01.2022 you have not validated any of the comments. Your validation will be a booster for the contributing experts.

Regards and good wishes,
Chandra Mani Lal Srivastava
Master Consultant 9315516083

New Delhi

From India, New Delhi

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server