Dear All,
Greetings for the day. Also accept my heartiest Diwali greetings in advance.
Please be informed that our company is a construction company, having several projects running at various places all over India. In our company the Gross Salary structure consists of components like Basic, HRA, Transport Allowances etc. One such component is 'Other Allowance' which is basically to compensate all and any kind of allowances which is required to be paid at different regions/localities of the various project sites. E.g, somewhere 'shoe allowance' is to be paid and at some other project 'night allowance' is required to be paid and so on. To compensate all these varieties of allowance at different locations, our management is paying 'Other Allowance' as a component of the gross salary in addition to the other common allowances like HRA, Trans. Allowance etc.
Recently, I came to understand from a reliable source that the nomenclature 'Other Allowance' should not be used as a component of the gross salary and that we have to have a specific allowance instead.
Kindly enlighten me on whether it is really improper to use 'Other Allowance' as a salary component, specifically for statutory reasons? Can there be a suitable alternative nomenclature for the same to resolve our purpose?
Looking forward for inputs from all my seniors, experts and colleagues.............and thanking you in advance for anticipated responses.
Regards,
Soma Das
Kolkata.
Greetings for the day. Also accept my heartiest Diwali greetings in advance.
Please be informed that our company is a construction company, having several projects running at various places all over India. In our company the Gross Salary structure consists of components like Basic, HRA, Transport Allowances etc. One such component is 'Other Allowance' which is basically to compensate all and any kind of allowances which is required to be paid at different regions/localities of the various project sites. E.g, somewhere 'shoe allowance' is to be paid and at some other project 'night allowance' is required to be paid and so on. To compensate all these varieties of allowance at different locations, our management is paying 'Other Allowance' as a component of the gross salary in addition to the other common allowances like HRA, Trans. Allowance etc.
Recently, I came to understand from a reliable source that the nomenclature 'Other Allowance' should not be used as a component of the gross salary and that we have to have a specific allowance instead.
Kindly enlighten me on whether it is really improper to use 'Other Allowance' as a salary component, specifically for statutory reasons? Can there be a suitable alternative nomenclature for the same to resolve our purpose?
Looking forward for inputs from all my seniors, experts and colleagues.............and thanking you in advance for anticipated responses.
Regards,
Soma Das
Kolkata.