Calculating HRA and Basic Salary for Performance-Based Pay: How Do You Manage It?

Hello,

We are paying salary on a performance basis - like if anyone sells 20 kits, he will get 15,000/-. If he sells fewer, then he will get less, meaning if he sells 10 kits, he will get 7,500/-.

How can I calculate HRA Basic in this type of situation? Will the basic be variable each month?

Irrespective of the number of kits sold, if you pay a wage or salary, then in any case, it should not be less than the minimum wages prescribed by the appropriate government.

Dear Kaizanhr,

If you are recruiting anybody on wages/salary, then the above-mentioned structure cannot work for them. If you want to proceed with this, you have the option to have a service or sales contract with them, under which they will not be employees of your organization.