@ PKAssociates
Please correct me if I am wrong. My observations and suggestions are as follows:-
1. The Xls sheet which has been enclosed appears to me different in respect to similar remuneration to other organizations in India. Usually in today's context employees at medium/higher level are also receiving LTA, Car facility, variable pay etc. which are absent in your structure.
2. The organization is restricting PF contribution up to 15000/- per month statutory cap.
3. Usually in any offer / appointment letter it is not mentioned the employee portion of PF contribution. What about PTAX then if applicable in your State and to be deducted from the employees' earning.
4. There is no relation between PF contribution vs Special allowance ( other allowance ) .The concept is PF gross as per verdict of Apex court on which PF to be deducted subject to Statutory cap 15,000/- per month or with no upper limit as per policy of the organization.
5. As you have already rolled out the offer letter then to my opinion you need not to change any thing.
6. Your Pay slip should be earning side only the the earning components and no employer or employee contribution to PF. The deduction side should be Employees' portion of PF, PTAX if any, ITAX and any deduction if applicable against loan/advance, Net Salary should be Earning - Deduction.
7. Your Pay roll should look like above which in case of any visit from any statutory body will check and satisfy.
8. My personal suggestion to restructure your existing remuneration structure as you have mentioned in your Xls. sheet with some yearly components at least with one variable pay based on performance of the organization as well as individual.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
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