Hi all,
Good morning!
We are a growing software company and currently in the process of restructuring our salaries. I am looking for additional salary components beyond the standard ones such as basic pay, dearness allowance (DA), house rent allowance (HRA), special allowance, medical benefits, transportation allowance, etc.
Is there a possibility to structure the employee's salary package to appear higher overall while keeping the monthly amount lower, with payments made quarterly or semi-annually under a specific category?
Regards,
Rajashree
From India, Pune
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Good morning!
We are a growing software company and currently in the process of restructuring our salaries. I am looking for additional salary components beyond the standard ones such as basic pay, dearness allowance (DA), house rent allowance (HRA), special allowance, medical benefits, transportation allowance, etc.
Is there a possibility to structure the employee's salary package to appear higher overall while keeping the monthly amount lower, with payments made quarterly or semi-annually under a specific category?
Regards,
Rajashree
From India, Pune
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Dear Rajshree,
The medical you have mentioned can be paid on a quarterly or half-yearly basis instead of a monthly basis. You can also pay the Reimbursement of Uniform Expenses on a half-yearly or annual basis (it cannot be paid on a monthly or quarterly basis as you generally do not give more than two uniforms in a year).
The LTA should be paid once every two years to save tax. If you do not want your employees to save on tax, you can pay it annually. In that case, they will be able to save on tax every alternate year (or to be precise, only twice in a block of four years).
Employees who are outside the purview of the Bonus Act can be paid a fixed amount or a fixed percentage of the basic as a bonus every year.
Additionally, you can pay annual incentives (also known as variable pay) which are either linked to the profitability of the company, the employee's profit center, or certain performance parameters of the employee.
Now, you have a wide range of options to choose from.
KKT
From India, Delhi
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13The medical you have mentioned can be paid on a quarterly or half-yearly basis instead of a monthly basis. You can also pay the Reimbursement of Uniform Expenses on a half-yearly or annual basis (it cannot be paid on a monthly or quarterly basis as you generally do not give more than two uniforms in a year).
The LTA should be paid once every two years to save tax. If you do not want your employees to save on tax, you can pay it annually. In that case, they will be able to save on tax every alternate year (or to be precise, only twice in a block of four years).
Employees who are outside the purview of the Bonus Act can be paid a fixed amount or a fixed percentage of the basic as a bonus every year.
Additionally, you can pay annual incentives (also known as variable pay) which are either linked to the profitability of the company, the employee's profit center, or certain performance parameters of the employee.
Now, you have a wide range of options to choose from.
KKT
From India, Delhi
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Hi,
Thank you for your input. Could you please advise me on how to handle the payment of our employees working outside of India? I am seeking guidance on how to calculate their salary packages according to our standards or the UK or USA salary system.
Thank you,
Sanika
From India, Thana
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Thank you for your input. Could you please advise me on how to handle the payment of our employees working outside of India? I am seeking guidance on how to calculate their salary packages according to our standards or the UK or USA salary system.
Thank you,
Sanika
From India, Thana
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Hi,
Thank you for your inputs. Could you please provide suggestions on how to calculate the salary package for our employees working outside of India? We are looking to align their compensation with either our standards, the UK, or the USA salary system.
Thank you,
Sanika
From India, Thana
Acknowledge(0)Amend(0)
Thank you for your inputs. Could you please provide suggestions on how to calculate the salary package for our employees working outside of India? We are looking to align their compensation with either our standards, the UK, or the USA salary system.
Thank you,
Sanika
From India, Thana
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx