I request that you all please help me with the salary breakdown as per the latest amendments, where the basic is 50% and the HRA is 40%. I would also appreciate it if anyone could help me with how I can convince the organization to implement the same, as the current structure the organization uses is basic, which is 25% of the gross.
Thank you so much in advance. Here, there is no gratuity, too, so for me to propose to the organization, I need a very strong case from my end on how it is beneficial for the organization to implement all these. Thank you in advance.
Regards, Samyuktha
From India, Bangalore
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Thank you so much in advance. Here, there is no gratuity, too, so for me to propose to the organization, I need a very strong case from my end on how it is beneficial for the organization to implement all these. Thank you in advance.
Regards, Samyuktha
From India, Bangalore
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Hello Samyuktha,
Based on your query, it seems you wish to propose a revision in the salary structure of your organization, with 50% basic and 40% HRA. Here's how you can approach the situation:
✅ **Step 1:** Start with a formal proposal to your management highlighting the benefits of restructuring the salary components.
- Emphasize that a higher basic pay (50%) can lead to higher contributions towards Provident Fund (PF), which will help in long-term financial planning for employees.
- Highlight that a higher HRA (40%) is beneficial for employees residing in metro cities like Bangalore, as it can help in tax savings under Section 10 of the Income Tax Act.
✅ **Step 2:** Present a comparative analysis of the current and proposed structures. This will help to clearly demonstrate how the new structure is advantageous for both the organization and the employees.
✅ **Step 3:** Be prepared to address potential concerns such as increased liability towards gratuity, if applicable.
✅ **Step 4:** Engage in open communication with employees about the benefits of the proposed structure. This will help to gain their support, which will be beneficial when presenting the case to management.
✅ **Step 5:** Finally, ensure your proposal aligns with the latest amendments in labor laws and taxation norms. If necessary, consult with a legal or taxation expert to validate the proposed structure.
Please note that while this advice is based on general HR best practices, the specific legal and tax implications may vary based on local regulations in Bangalore, India. Always consult with a local expert to ensure compliance.
Hope this helps you in making a strong case for your proposed salary structure! 🍀
From India, Gurugram
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54Based on your query, it seems you wish to propose a revision in the salary structure of your organization, with 50% basic and 40% HRA. Here's how you can approach the situation:
✅ **Step 1:** Start with a formal proposal to your management highlighting the benefits of restructuring the salary components.
- Emphasize that a higher basic pay (50%) can lead to higher contributions towards Provident Fund (PF), which will help in long-term financial planning for employees.
- Highlight that a higher HRA (40%) is beneficial for employees residing in metro cities like Bangalore, as it can help in tax savings under Section 10 of the Income Tax Act.
✅ **Step 2:** Present a comparative analysis of the current and proposed structures. This will help to clearly demonstrate how the new structure is advantageous for both the organization and the employees.
✅ **Step 3:** Be prepared to address potential concerns such as increased liability towards gratuity, if applicable.
✅ **Step 4:** Engage in open communication with employees about the benefits of the proposed structure. This will help to gain their support, which will be beneficial when presenting the case to management.
✅ **Step 5:** Finally, ensure your proposal aligns with the latest amendments in labor laws and taxation norms. If necessary, consult with a legal or taxation expert to validate the proposed structure.
Please note that while this advice is based on general HR best practices, the specific legal and tax implications may vary based on local regulations in Bangalore, India. Always consult with a local expert to ensure compliance.
Hope this helps you in making a strong case for your proposed salary structure! 🍀
From India, Gurugram
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Creating a Competitive Salary Structure.doc
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