Hi all,
I am Samir working in BPO &
I just came across few problems ( five ) during Salary Structuring & I need your help for the same.
1. Do we have to show DA (dearness Allowance or Cost of leaving allowance) separately?
2. And is DA ( cost of living allowance) & HRA different?
3. As at present our mgmt does not intend to go for PF nor ESIC registration so I have prepare a structure with Basic+ DA greater than 7500.
But if later on mgmt intends to go for registration for PF ,
a. Is it possible to reduce the Basic & DA once given?
b. If we prepare a structure in which we do not show DA seperately how could PF be calculated?
4. Also I have seen few BPO's include monthly gratuity contribution (calculation) in employee's salary is it correct method?
As far I know that, it is company's responsibility & could be given after the employee completes 5 yrs or there is permanent disability to work or if the pt dies on the job. And employer cannot include that contribution or LIC premium ( gratuity policy) in employees salary from beginning it self.
5. I have also come across few structures in BPO in which the Basic, DA is less than the govt specified rates,
Is this not breach of Minimum Wages Act.
Please shed some light on how salary is calculated under Minimum Wages Act.
Waiting for your response,
thanks,
samir.
I am Samir working in BPO &
I just came across few problems ( five ) during Salary Structuring & I need your help for the same.
1. Do we have to show DA (dearness Allowance or Cost of leaving allowance) separately?
2. And is DA ( cost of living allowance) & HRA different?
3. As at present our mgmt does not intend to go for PF nor ESIC registration so I have prepare a structure with Basic+ DA greater than 7500.
But if later on mgmt intends to go for registration for PF ,
a. Is it possible to reduce the Basic & DA once given?
b. If we prepare a structure in which we do not show DA seperately how could PF be calculated?
4. Also I have seen few BPO's include monthly gratuity contribution (calculation) in employee's salary is it correct method?
As far I know that, it is company's responsibility & could be given after the employee completes 5 yrs or there is permanent disability to work or if the pt dies on the job. And employer cannot include that contribution or LIC premium ( gratuity policy) in employees salary from beginning it self.
5. I have also come across few structures in BPO in which the Basic, DA is less than the govt specified rates,
Is this not breach of Minimum Wages Act.
Please shed some light on how salary is calculated under Minimum Wages Act.
Waiting for your response,
thanks,
samir.