Are Probationary Employee Benefits Included in the $10,000 Salary Offer? Let's Discuss!

Hello Moderators, I just wanted to ask whether the benefits provided in the offer letter to a new employee who is on a two-month probation period, with a monthly remuneration/salary of $10,000, are inclusive or exclusive of the remuneration/salary amount? Thank you.

What do you mean by benefits, remuneration, and salary?

There cannot be any difference in salary for a probationer or during probation. If there is a mention of salary, and it is Rs 10,000, then that will be paid during the probation period. After two months, sometimes, the salary may be re-fixed based on performance and as per company policy.

Benefits such as Traveling Allowance and House Rent Allowance

Are these benefits inclusive or exclusive of salary for the probation period?

The following is the mentioned point in the offer letter:

Designation: HR Manager

Date of joining: ..........

Remuneration: Rs. 10,000/-

Working Hours: 9 am to 6 pm

Leaves Allowed: Sick Leaves, number of leaves paid at Training

Allowances: House Rent Allowance, Automobile, Traveling Allowance, etc., if applicable.

Benefits: Gratuity, medical insurance, PF (in process), bonus, lifetime job security, etc., which are not included in the salary.

Kindly confirm your acceptance as early as possible by signing this letter. Once the letter is duly signed, it means that you have accepted the terms and conditions along with the offer. We have enclosed a copy of this letter for your records.

Since there is no mention that during probation the employee is not entitled to allowances, he should be paid all allowances and benefits as they may accrue (gratuity will accrue only after five years of service, bonus will become payable the next financial year on the condition that in the current financial year the employee would work for at least 30 days—which he would achieve anyway).

Employee Benefits and Probation

The employee benefit of lifetime job security is a new concept for me, but it is not a direct benefit measurable in terms of money. Still, it should be available from day one of joining. In short, as there is no mention that only 'remuneration' will be payable during probation, he should be paid allowances as well. Only then would the salary become an acceptable amount as per industry standards because Rs 10,000 is the minimum statutory wage of an unskilled worker in many states.