New to Employee Relations and Wage Administration? Seeking Your Guidance!

Hello Friends,

I have just now joined this community. I have seen some really good HR topics being addressed. Now, I too would like some help from you all. I do not possess much knowledge about Employee Relations or Wage & Salary Administration. So, I would appreciate it if you all could guide me. Thank you in advance!

Cheers, Namita

Welcome aboard, Namita. "A thousand mile journey must begin with a single step," from Tao Te Ching. Take every transaction/interaction in your company as a learning opportunity.

Surya

Hi Namita,

Welcome to citehr.

You will definitely find a lot of opportunities to learn as well as discuss issues with professionals in the same field.

Could you please be more specific about your requirements?

Regards,
Amit Seth.

Hi Amit,

I am actually gathering information about PF and ESIC rules. Also, when computing the salary structure, what are the components that can be included and at what percentage?

Also, Amit, I would like to say that I saw some awesome contributions from you on HUMOUR, and I must say I am completely bowled over by them. I enjoyed them thoroughly!

Thank you.

Hi Namita,

Welcome, and thanks for such nice appreciation! :D The contents of the salary breakup are as below. You can prepare it according to your own suitability. HRA would be 50% or 60% of basic.

Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who is not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Getting more than this will be covered under Mediclaim or it depends on company policy.
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also called CTC.

Hope it is clear to you now. If you have any queries, feel free to ask.

Regards,
Amit Seth

Hi Namita,

I have been working as a Labour Laws Consultant for the past 2 years and have to deal with all wages/salary-related issues all the time as I ensure compliance with these acts for my clients. So, feel free to ask me anything about payroll management, etc., but please be specific about what you want to inquire.

Abhinav.

Hi Abhinav,

I was actually looking for information pertaining to:
1. Slabs related to Professional tax
2. PF formalities, including PF withdrawal formalities
3. Computation of Income Tax for a female employee with an annual package of 1.92 lakhs.

I am looking forward to your guidance on the same.

Thanks,
Namita

Hi, I'm Sunil. I'm very new to Payroll and I don't know at what percentage salary is calculated. I don't have much knowledge of that, so please, if anyone can help me out, please help?

Dear Amit,

Thank you very much for your nice presentation about the salary breakups. However, I would like to suggest a small correction regarding the ESCI portion. In the employer contribution part, you mentioned the percentage as 4.75%, whereas in the employee part, it should be 1.75%. Also, there is another small correction in the ESCI ceiling, which should be extended up to Rs. 15,000 per month.

Thanks,
Debdutta