HR Audit Insights: What I Learned and How It Can Help You

Human Resources Audit - My Answers

For the benefit of my HR friends.

The Importance of HR Audit

HR Audit is a must. Otherwise, supervisors will typically utilize four persons for one person's work. As a result, labor costs will increase, and profits will be reduced, leading to losses.

Regards,
D. Gurumurthy
HR/IR Consultant

Hello Sir, please tell me if we are giving an employee a gross salary of 14,000 and a washing allowance of 700, do we have to deduct ESI on 13,300 or on 14,000? Can I get a notification stating that ESI is not applicable on washing allowance?

I received information from someone that wages paid in cash or on a payroll register attract ESI Contribution. Could you please clarify my doubt?

Regards, Vedvert Dalal

As per my belief and knowledge, ESI will be deducted on ₹14,000/-. The reason for this is that ESI is always deducted on total earnings.

Thank you.