So far my knowledge goes there is no IT guideline regarding compensation structure. If there is any, requesting to put it in this forum.
As per Wage Codes rather in all Labor Codes, the definition of wages is same.
In the first part of the definition it is inclusion list - all remuneration whether by way salaries, allowances or otherwise , expressed in money, payable to a person and includes Basic, DA & RA.
2nd part is exclusion list ( a to k) all payable items except one item no. (b) The value of any house accommodation, or of supply of light, water, medical attendance ................ which are not a payable items but included in the exclusion list.
3rd part is restriction/condition on exclusion items ( a to i ) which should be 50% of the payable
amount.
To restructure the existing remuneration structure, it will be required to start from CTC of each individual employee ( now a days available with most of the organizations) and judiciously to determine the payable items. 50% of the payable items will be Basic & DA. Rest 50% will be other monthly and annualize items including Employer's contribution to PF, Pension Fund if any etc. etc.
Some examples of non-payable items ---- Employer's ESIC contribution, Canteen Subsidy, Company providing transport to bring employees office and back, Insurance premium etc. etc.etc.
The above will vary randomly from organization to organization and employee to employee. But till date no Labor Codes have been implemented. Let us wait till the Government announces the implementation date.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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