Seeking Advice on Attendance Systems, Employee Costs, Leave Policies, and Salary Increments

Dear members, I seek your help to clarify four things:

1st: Cost and Usability of an Electronic Attendance System

How much would it cost to implement an electronic attendance system? Is it user-friendly?

2nd: Calculating Employee Cost with Free Accommodation in Mumbai

I want to know the basis of calculating the employee cost if a company offers free accommodation in Mumbai. What parameters do I need to consider? Please shed some light with examples.

3rd: Eligibility for Privilege Leave/Annual Leave

Can an employee enjoy privilege leave/annual leave before completing a year in service from the date of joining?

4th: Average Yearly Increment Percentage

Under normal circumstances, what is the average percentage of yearly increments in companies given to their employees?

Soliciting an early reply.

Best Regards,
From Mumbai

Dear members, I seek your help to clarify four things:

1st: Cost and Usability of Electronic Attendance System
How much would it cost to implement an electronic attendance system? Is it user-friendly?

2nd: Calculating Employee Cost with Free Accommodation in Mumbai
I want to know the basis of calculating the employee cost if a company offers free accommodation in Mumbai. What parameters do I need to consider? Please shed some light with examples.

3rd: Eligibility for Privilege Leave/Annual Leave
Can an employee enjoy privilege leave/annual leave before completing a year in service from the date of joining?

4th: Average Yearly Increment Percentage
Under normal circumstances, what is the average percentage of yearly increments in companies given to its employees?

Soliciting an early reply.

Best Regards,
From Mumbai

Dear Mr. Ramesh,

Electronic Attendance System Options

The Electronic Attendance System costs around Rs. 20,000/- to Rs. 70,000/-.

- **Swipe Card System:** All members must be given a swipe card, which costs around Rs. 12/- per card, and the initial setup will cost you around Rs. 20,000 to 25,000/-. (Drawbacks: Others can swipe on behalf of you.)

- **Identity Card System:** If you carry the card in your shirt pocket, the system's sensors will identify you and punch your attendance. It costs from Rs. 35,000/- to 40,000/-. (Others can punch your attendance, but one cannot carry two cards for entry.) Having both punching in and punching out systems implemented means fraud can be minimized. This system can accommodate 1,000 workers.

- **Face Reader System:** It will cost you up to Rs. 70,000/-, and you can punch attendance with this system for up to 700 workers. It can recognize your face even if you have a mustache, beard, or clean shave.

- **Fingerprint Impression System:** It may be less costly, but it has a problem: if you have a cut on your finger, it may not recognize your attendance.

Company Benefits and Leave Policies

Providing free boarding and lodging, conveyance, etc., is subject to your company's rules and affordability. You can determine this in consultation with your management.

You have to formulate your company's leave rules in consultation with your management according to the prevailing leave rules in the market.

Annual Increments and Ex-Gratia

In my opinion, annual increments and ex-gratias should be based on the employee's performance and not fixed like government policies. If increments are fixed, outstanding performers may not have the incentive to excel. If employees receive increments regardless of performance, productivity may decrease. This is just my perspective. You can consider this approach when formulating the annual increments, ex-gratia, and bonus in consultation with your management.

With warm regards,

S. Bhaskar

[Phone Number Removed For Privacy Reasons]

Thank you, Mr. Bhaskar, for your reply. I am not Ramesh. Where did you get that name? Anyways, thanks again. However, I still found most of your answers not to the point except for answer Number 1.

Question 2: Basis of Calculation for Lodging Facilities

For question number 2, I am looking for a basis of calculation regarding lodging facilities, such as the cost of living index, real estate data, etc., so that I can arrive at scientific results to understand the cost for an employee in Mumbai if we offer free accommodation. I want to calculate the exact cost per person for accommodation.

Question 3: Prevailing Rules for Privilege/Annual Leave

For question number 3, I want to know the prevailing rules in the market that you did not highlight regarding Privilege/Annual Leave.

Question 4: Average Percentage of Yearly Increments

For question number 4, I need an average percentage. For instance, if all things remain constant and a company performs well, what is the increment normally announced by companies?

I hope you are clear about my questions.

Thank you,

From Mumbai

Q-2 - You can contact the Labour Commissioner's office to obtain details of the Cost of Living Index. Additionally, reach out to real estate/property dealers to inquire about the cost of accommodation area-wise and plinth area-wise in order to set the rate. Alternatively, you can directly arrange accommodation for your employees based on their positions.

Q-3 - The majority of companies offer 8 to 12 days of casual leave and 15 to 30 days of paid leave. According to current regulations, one day of leave should be granted for every 20 working days completed.

Q-4 - As I have already explained, we should not base increments on an automatic system. This approach may cause dedicated employees to feel demoralized.

With warm regards,

S. Bhaskar
[Phone Number Removed For Privacy Reasons]