Salary Breakup in Rajasthan: How Do You Calculate for Different Salary Ranges?

Salary Breakup Calculation for Employees in Rajasthan

Please help in calculating the salary breakup of employees whose salary is below ₹5000 per month in Rajasthan.

- Salary below ₹5000
- Salary above ₹5000
- Salary above ₹10000

Regards

Please ensure that the minimum wages of Rajasthan are known before providing any bifurcation. Rather than jumping to conclusions, I am providing you with the categories under which the salary can be bifurcated.

Salary Bifurcation Categories

Basic - not less than the minimum wages of the state (50%-60% of the gross salary).
HRA - 40% of the basic salary.
Conveyance - Rs. 800/- maximum; anything above that is taxable.
Medical Allowance - Rs. 1250/- maximum; anything above that is taxable.
Other allowances - the remaining balance should be merged in this.

Thanks & Regards,
Sumit Kumar Saxena

We are running a private hospital in Rajasthan and have a staff of 40 skilled and semi-skilled employees. At present, we are paying salaries in cash. Now, we have decided to pay salaries through the bank, but some government liabilities have arisen, which are mentioned below:

Employee and Employer Contributions

Employee Contribution | Employer Contribution
PF: 12% of basic | 13.67% of basic
ESI: 1.75% of Gross Salary | 4.75% of Gross Salary

The minimum salary we pay is ₹5000, and the maximum salary is ₹15000. Please help me solve the following queries related to staff salaries:

1. How can we reduce the employer contribution liability (PF & ESI)?
2. How do we calculate overtime?
3. Which part of the salary is not covered under ESI Gross Salary criteria?

Regards

Please let us know under which Act your hospital is registered. Accordingly, you have to pay the minimum rates of wages applicable for semi-skilled and skilled employees. If you state that the minimum salary is ₹5000, I believe this is below the minimum wages. Please find out the minimum rates of wages applicable in your state and pay the salary without any minimum or maximum. If you are paying the salary above the minimum rates of wages specified by the state government, then provide a breakdown of the salary as Basic, DA, Conv, and other allowances as advised by Mr. Saxena.

Response to Further Queries

1. You cannot reduce any liability of your employer. Liabilities should be paid as per the records, with no compromise on complying with the laws.

2. If an employee is engaged to work overtime, you must pay the overtime wages at double the rate of normal wages. Maintain records of overtime wages.

3. Since you have not provided the criteria of the salary, we are unable to advise you.

Please present the actual facts and details of the case to seek advice based on the specific situation rather than assumptions.

Regards,
Adoni Suguresh

Sr. Executive (Personnel, Administration & Industrial Relations) - Retired
Labour Laws Consultant