What Is "Service Weightage" in My Salary and Is It Taxable? Can Anyone Explain?

Hi, hope you all are doing well. In my salary, I am getting some amount as a "service weightage," and that is clearly mentioned on my payslip as well. I did some research on the internet regarding this but could not find a proper answer. Can anyone please explain what service weightage is? Is it taxable? How is that amount allocated to every employee?

Regards,
Kandiban

Service Weightage and Its Tax Implications

Service Weightage is a component whose value depends on the employee's number of years of service in the organization. For example:

- Below 3 years of service: Rs. 300
- Above 3 years, but below 7 years: Rs. 450
- Above 7 years of service: Rs. 600

Please note that this amount is fully taxable.

Service Weightage in Payslips

Normally, basic pay increases with service weightage. Based on my experience, there is no separate component for service weightage on the payslip.

Pon

Aditya is correct. The service weightage amount is based on the length of service put in by the employee. It will be paid as decided in the LTA. Some organizations include this amount in the basic salary, while some organizations pay it as a separate component.

Regards,
GIRI

When are we supposed to pay this service weightage amount? Is it on completion of 1 year along with appraisal amount, or is it paid monthly as a component in the pay? Does this differ from state to state or is it applicable all over India? I want to know the procedure followed in Karnataka. Is it calculated on some percentage basis or a fixed amount as mentioned by a member above.

Please help on an urgent basis! Thank you.