How Do You Handle Salary Adjustments for State-to-State Employee Transfers?

Transfer Considerations: Salary Adjustments

Transfer of a worker from one state to another can involve several procedures that need to be followed. One important consideration is whether a salary hike should be given as part of the transfer. If the current state has lower minimum wages and a lower cost of living index, it may be necessary to increase the salary by a certain percentage to maintain the employee's standard of living.

Please let me know if you would like more information on the specific procedures or guidelines for handling such transfers.

Employee Transfer Conditions and Salary Adjustments

If there is a condition in the appointment order, then you have the right to transfer an employee anywhere in India. After the transfer, you must pay the equal grade pay applicable in the transferred state. Transfers should be done in a routine manner and should not be with ill motives.

Thanks

Transfer Considerations

Transfer should be for administrative reasons and genuine, not as a measure of punishment or otherwise.

My query is:

Employee Settlement and Salary Hike for State Transfer

The company is shifting from one state to another, i.e., from Puducherry to Tamil Nadu (near Chennai). What settlement should be given to employees not willing to relocate to Tamil Nadu? What percentage of a salary hike should be provided to employees transferring to Tamil Nadu? This is important because the cost of living in Puducherry is lower than in Tamil Nadu.

An employee may be transferred from one location to another location of the company provided that neither the wages nor other conditions of service are adversely affected. If the transfer is to another state, the employee is entitled to dearness allowance and city compensatory allowance as applicable, in addition to transfer benefits as per rules. Their basic pay, grade, and scale of pay will remain the same in case of a parallel transfer. There cannot be a different grade and scale of pay for the same post in the same company.

Transfer Policy is a part of HR Policy itself. There are various modalities and benefits (sometimes deductions also applicable) that would accrue in transfer cases. Normally, these benefits go by the status and difficulties associated with the place of postings. Very rarely are additional increments given when HR policy provides for it. Otherwise, allowances associated with such places are given where additional expenses are to be incurred, such as in remote areas, hilly/icy terrain, etc.

However, in your case, the transfer from Puducherry to Chennai would involve a hike in HRA and CCA commensurate with 'A' class (metro) cities. If you are in a small private firm, you might rarely follow emoluments broken into Basic, DA, HRA, CCA pattern; instead, a consolidated salary may be in vogue. In which case, a lump sum increase or a certain percentage (say at 10% on basic, etc.) for the period of posting in Chennai/TN could be considered. The quantum is left to you, and it should be attractive as well, to lure them to accept the transfer readily, though a transfer cannot be refused by an employee as per service conditions (refer to your appointment order or HR Policy).

Regards

In addition to the views of our members, it is also essential to protect the seniority of the employee in the grade they are going to transfer to.

Eswararao Ivaturi.

Please check whether transfer liability is incorporated in the company rules and regulations or CERTIFIED STANDING ORDERS. If it is incorporated, the transfer is in line. Regarding other things, the pay and perks hitherto getting should not be less than what he is drawing at the time of transfer. Further, grant-in-aid for transportation, etc., is allowed. In any case, the wage should not be less than the wage applicable to the transferred place or state.