As the labor codes are knocking at the door, instead of framing traditional wage structure, it will be better to frame wage structure close to as per guide line provided in the definition of wages under all labor codes as follows:-
1. Determine CTC considering all possible elements spent by the organization for any employee including point (b) of the exclusion list as per definition of wages. (x)
2. Identify gratuity amount, ESIC employer contribution if any, insurance premium if any and any other components not payable to employee but spent by the organization. (y)
3. Total remuneration payable to employee = x - y as per definition of wages,
4. As per definition of wages, Basic & DA should be 50% of (x-y). Labor codes are not yet implemented. Basic and DA may be at this moment 35 -40% of (x-y).
5. When labor codes will be implemented it may be enhanced to 50% at that time and the problem will be less.
6. To my opinion all organizations in India should start re-structuring the remuneration package as it is varying randomly from organization to organizations.
S K Bandyopadhyay ( WB, Howrah)