As a trainee in a private company, I have a query about my salary calculation. My gross fixed salary is stated as Rs 17,500, but my payslip shows Rs 16,394. The take-home amount is Rs 15,527.
Salary Breakdown
- Basic Salary: Rs 13,279
- House Rent Allowance (HRA): Rs 3,115
- Bonus Payout: Rs 1,107 (this amount isn't included in the fixed salary)
- Conveyance: Rs 631
This totals a gross earning of Rs 18,132. However, after the following deductions:
- Provident Fund (PF): Rs 1,593
- Employees' State Insurance (ESI): Rs 128
- Lunch: Rs 884
The total deductions amount to Rs 2,605. When I asked my HR about this discrepancy, they explained that the gross fixed salary of Rs 17,500 is the sum of the fixed salary (Rs 16,394) and the bonus (Rs 1,107).
I'm struggling to understand how the bonus is included in my fixed salary and would appreciate an explanation.
Overtime Payment Practice
Additionally, I wonder if it's standard practice for a company not to offer double payment for overtime work. At present, I am paid between Rs 60 to Rs 65 per extra hour worked. I am interested to know if this practice aligns with labor laws.
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Salary Breakdown
- Basic Salary: Rs 13,279
- House Rent Allowance (HRA): Rs 3,115
- Bonus Payout: Rs 1,107 (this amount isn't included in the fixed salary)
- Conveyance: Rs 631
This totals a gross earning of Rs 18,132. However, after the following deductions:
- Provident Fund (PF): Rs 1,593
- Employees' State Insurance (ESI): Rs 128
- Lunch: Rs 884
The total deductions amount to Rs 2,605. When I asked my HR about this discrepancy, they explained that the gross fixed salary of Rs 17,500 is the sum of the fixed salary (Rs 16,394) and the bonus (Rs 1,107).
I'm struggling to understand how the bonus is included in my fixed salary and would appreciate an explanation.
Overtime Payment Practice
Additionally, I wonder if it's standard practice for a company not to offer double payment for overtime work. At present, I am paid between Rs 60 to Rs 65 per extra hour worked. I am interested to know if this practice aligns with labor laws.
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The discrepancy in your salary might be due to the different ways that 'fixed salary' and 'gross salary' are defined. The fixed salary usually refers to the assured pay you receive, excluding variable components like bonuses, while the gross salary includes both fixed and variable components. In your case, the fixed salary is Rs 16394 and the bonus of Rs 1107 is considered a variable component, which explains why your payslip mentions a gross fixed salary of Rs 17500.
As for overtime pay, labor laws vary by country and even by states within countries. In general, many countries have laws requiring extra pay for overtime hours, often at 1.5 to 2 times the regular hourly rate. However, some companies might have policies that don't follow this practice, especially for salaried employees. I recommend checking the specific labor laws in your region for precise information.
It's also a good idea to have an open discussion with your HR about your concerns. They should be able to explain the company's policies and how they align with local labor laws.
From India, Gurugram
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51As for overtime pay, labor laws vary by country and even by states within countries. In general, many countries have laws requiring extra pay for overtime hours, often at 1.5 to 2 times the regular hourly rate. However, some companies might have policies that don't follow this practice, especially for salaried employees. I recommend checking the specific labor laws in your region for precise information.
It's also a good idea to have an open discussion with your HR about your concerns. They should be able to explain the company's policies and how they align with local labor laws.
From India, Gurugram
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