Managing Office Staff/Peons

Dear all,
We are a Travel company where the office boys play a key role.We have 10 office boys.Now i have faced an issue related to salary hike of these guys. Acc to them their salary has not been revised for more than a year now and they are not covered under medical or insurance benefits. They do outdoors trip to clients, banks , consulates etc and hence have requested for atleast the medical aid that they would need in time of accidents.
Their demands seems genuine but i may not be able to get it done at once.Their primary demand is salary hike.
Can anyone suggest me as to how we can manage them with minimum money outflow.
Regards
Jhuma

Hi, by looking at your request it looks they are working in your company payroll,and since the numbers are high first thing what you can do is put them on the third party Vendor contract and mention the hike you want them to get as per the Industry norms ... may be this will help you...

Your post doesnot say anything about the present salary paid. If it is less than the minimum wages fixed by the Govt (your state government) then you have to first give them minimum wages. Then if you are covered under the ESI Act, let these Office Boys be under the ESI Scheme which will be cheaper than any other medical insurance. Please narrate the details.
Regards,
Madhu.T.K

Dear Madhu,
We pay them in cash, between 2500 to 4000 rs.They paid one month's salary as bonus.The point is we being a small org we may not be able to match with big corporates. Also we do give them reimbursement on their conveyance and we pay them @ 150 for night shifts and holiday.
Regards
jhuma

Still your answer is incomplete. To know the actual minimum wages fixed, you have to visit either the website of the State Govt. or meet the concerned person in the Labour Dept. of your locality. First ensure that you are paying the minimum wages. A wages to Office Boy @ Rs 4000 is okay but at the bottom level, I don't feel it is fair one. To start with why can't you offer a hike like 20% or to make the wages at a level of Rs 3250 (roughly Rs 125 X 26 )

While negotiating, there is no scope for night shift allowance and overtime for holidays. But an allowance once paid cannot be withdrawn also. Therefore, you will have to continue with the practice. Therefore, you should project your wage bill with an imagination to that end also.

I presume that you have at least 20 employees in your travel agency and if so you have to be covered under the ESI Act and following that your office boys will be under the fold of ESI. You have to pay @ 6.5 % of the salary paid to those employees drawing not more than Rs 10000/- to the ESI Corporation every month. Of this 6.5%, you can deduct 1.75% from the salary of the respective employee. Employees drawing upto Rs 70 per day shall not pay employees' share of contribution. Once covered, the medical treatment etc of the employees will become the responsibility of the Corporation.

When they are covered under the ESI schemes, they will also become covered under the Employees Provident Fund Act. Under the EPF, the employer's responsibility is much high and his contribution alone will go to 13.61 of the salary.

The above act will be a motivator for the employees.

Regards,