Probation Period And Confirmed Employee

Hello Friends
I have one question for you, If I hired new employee of CTC 5 Lac PA
I am giving him salary per month after deduction aprox 38,000 Per Month.
My question is Whether should I give him full salary even he is on probation period.
If Not
How can I make difference of salary between probation employees and confirmed employees.
Thanks
Munali

Have a confirmation bonus component in your salary that is given only to confirmed employees. That should solve your problem and it is a very good model to have.

It need not be a percentage but a monthly figure... say if the salary of a person in probation is 15 K. After confirmation his figure becomes 17K. That ways confirmation also creates financial excitement.

Dear Munali,
Initially when you are hiring any candidate, you give a certain amount as his CTC. It doesn't look good if you withhold any amount.
The solution can be, you can budget the manpower cost accordingly while hiring as if 10 % low then after confirmation, based on his performance you can hike the CTC on percentage basis.
Hope this helps you. In case for any queries pls reply back.
Regards,
Poonam.

Dear Munali,
To make the difference in the salary is not logical because CTC components or break % is same across all level of employees in an organisation. The difference you can make is that the the confirmed employees are eligible for the Priveledge leaves whereas new joinees or those on probation are not. After their confirmation the pl leaves gets credited in their account on the pro rata basis.
Munali you can only make difference in the perks not in the SALARY/CTC.
regards
Shikha

Dear Munali,
AS PER CTC, U HAVE TO MAKE SURE BEFORE GIVING HIM THE SALARY OF HIS PREVIOUS COMPANY SALARY. AFTER 06 MONTHS U CAN GIVE HIM/HER CTC 05 LACKS.

Hi
I am not agree with you because its morally down that you are offering less salary now and after confirmation this will increase..
For me its better to calculate somewhere in offered CTC
Thanks for your suggestion
Munali

Hi
What do you mean in perk only.
If either way you give increment its directly related to salary/CTC
Munali

There seems to be two parallel tracks running here. So lets segregate... let's look at the Fundamentals:

What is CTC ? The name itself signifies what it means... Cost to the company... Here is a simple example to explain CTC more simply.

The CTC of a person is say 12 L per Annum. Meaning 12 L will include his monthly, his annual and all his bonus / incentives.

Now i as a company can give him :

1. 50 K per month and 6 L at the end of the year

2. 20 K first 3 months, 40 K next 6 months , 60 K next 3 months and 7.2 L at the end of the year.

3.....and so on

The point is, there are no set rules that say you cannot increase a salary every month / quarter / period. So YOU CAN have Different salary packages within a single financial year.

One industry that does this is the IT industry where performance appraisals are done every 6 months in some companies and increments given.

Increase in Salary on confirmation is quite a normal trend in lot of smaller companies.

How / what should you increase in the salary structure...

Typically the basic and all components connected to Basic ( like the HRA) are not tempered with unless there is a grade change which could be annually or more than that. What is played around are allowances ( and you can give it any name that you want).

Cheers!!!

Navneet

Hi, Munali

sub-Probation period and confirmed employee

The concept of probation and confirmation needs to be clear to deal with your predicament.An employee under probation is kept under observation during probation to find whether he is suitable to be part of the company and for a long service relationship with the company. Such distinction is a long followed and recognised practice in employment.Thus the service law, practice and custom undoubtedly keeps a confirmed employee on a pedastal higher than the employee under probation. Therefore the company shall make the distinction manifest in various respects.For example, a probationer may not be considered eligible for certain financial assistance like vehicle loan or housing loan or certain perks like telephone reimbursement facility. If it being so, how a distinction in salary during probation and confirmation can be discriminatory. The company is well within it's right to award increments or bonus on confirmation as some members suggested. I think, the members have come out with some practical solutions to get over your problem.

B.Saikumar

HR & labour Law Consultant

Chipinbiz Consultancy Pvt.ltd

Mumbai

022-28324234

i