How to Handle Negative Figures in Arrears Register After Wage Changes?

Hello Seniors, Thanks in advance for your support! I have a simple query. Recently, my company has decided to make some minor changes in the wage heads of workers after giving them an increment in June 2015, effective April 2015.

For instance, Worker Name XYZ, Paid Days: 26.

Old April 2015 Breakup:

- Basic: 220
- HRA: 88
- Med: 30
- C.E. Allow.: 5
- F. Allow.: 10
- Convey.: 27
Total: Rs. 380 (Per Day)

Revised April 2015 Breakup:

- Basic: 270
- HRA: 54
- Med: 50
- Convey: 56
Total: 430 (Per Day)

Below are my questions:

1. When I am trying to make an Arrears Register, there are heads like H.R.A, C.E. Allow., and F. Allow. going negative. Is it okay to show them as negative in the arrears register?
2. If a negative figure is not acceptable in the register, how do I resolve this issue?

I would really appreciate it if you could revert considering it a little priority.

With Warm Regards,
Sagar Gulani

Dear Sagar, No mention in your post as to whether the proposed hike in the wages, together with changes in its components, is a decision arrived at by a bilateral agreement with the workmen or after the issue of a notice under Section 9-A of the Industrial Disputes Act, 1947. Please check it.

In the revised scale, the components of C.E. Allowance and F. Allowance stand omitted, and HRA reduced with a hike in Basic and Medical Allowance. So the entries in the register will depict only the actuals, and hence, there will be no problem with the register.

Dear Sir, I really appreciate your guidance. To answer your first question, our company falls under SSI with a strength of 42 employees (including 8 staff & 34 workers), and it was not a bilateral agreement with the workmen. However, it was a normal increment process like every year to increase wages/salary, keeping the minimum wages in our sight. (We are located at Daman & Diu). I am not aware of the issue of a notice under section 9-A of the Industrial Disputes Act, 1947, as of now, and I am unable to find it on the internet. If you could share a copy, I would really appreciate it.

For the second point, I have prepared a sample Excel sheet, which I am sharing here. I would be in debt if you could kindly advise about it and suggest if it is correct or if it needs some alterations! (Method & Format)

Once again, I really appreciate your guidance, awaiting your kind response.

Thanks,

Sagar Gulani