Sir,
There is one employee in our organization who retired yesterday, and our company would like to retain him for a period of one year.
Kindly advise on the percentage of salary on which we can retain him. Is there a specific rule that our company follows for retaining an ex-employee for a specified period? I am particularly interested in understanding the basis of salary/retainership fee.
Your prompt response is greatly appreciated as this is urgent for me.
Thank you,
Rekha
From India, Delhi
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14There is one employee in our organization who retired yesterday, and our company would like to retain him for a period of one year.
Kindly advise on the percentage of salary on which we can retain him. Is there a specific rule that our company follows for retaining an ex-employee for a specified period? I am particularly interested in understanding the basis of salary/retainership fee.
Your prompt response is greatly appreciated as this is urgent for me.
Thank you,
Rekha
From India, Delhi
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Well advised by RPK.
There are no rules behind this. You may hire him on a retainer at the prevailing market rates or based on his last drawn salary and job criticalness.
Regards,
Amit Seth.
From India, Ahmadabad
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There are no rules behind this. You may hire him on a retainer at the prevailing market rates or based on his last drawn salary and job criticalness.
Regards,
Amit Seth.
From India, Ahmadabad
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You can offer him an amount not less than his last take-home salary because he was worth it until his retirement, and he is a valuable resource. That's why the Management wants to keep him.
Hope I make sense.
Prashant
From India, Delhi
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Hope I make sense.
Prashant
From India, Delhi
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Hi rekha, Pay him as per the market rate but whatever you give should be on a consolidated basis. Regards
From India, New Delhi
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From India, New Delhi
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An employee can be taken into retainer after retirement with the same pay, but there will be a difference in the benefits afforded to him as an employee and as a retainer. He can be continued with a new agreement or appointment letter by settling his dues F&F of his employment. As far as pay is concerned, a lump sum amount can be paid directly with no breakups in salary.
From India, Hyderabad
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From India, Hyderabad
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I think all have made it fairly clear that it has nothing to do with any percentage. It all depends upon the organization's discretion based on the salary last drawn, market standard, criticality of the job, and the efficiency of the person.
Rekha, please share with us if you have another view regarding this matter.
Regards,
From India, Mumbai
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Rekha, please share with us if you have another view regarding this matter.
Regards,
From India, Mumbai
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Thanks to all of you. Even i am also of the same belief. But since the question arose by my mgmt team, thus wanted to take the experienced opinions of all of you. thanks rekha
From India, Delhi
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From India, Delhi
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Dear All,
Does retainer consultancy attract any tax regarding taxation? If yes, what percentage? I have also heard that if the income exceeds a certain amount, the retainer is also subject to service tax, if I am not mistaken.
Thanks,
Trushit Acharya
From India, Ahmadabad
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Does retainer consultancy attract any tax regarding taxation? If yes, what percentage? I have also heard that if the income exceeds a certain amount, the retainer is also subject to service tax, if I am not mistaken.
Thanks,
Trushit Acharya
From India, Ahmadabad
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Yes, retainers need to be deducted with TDS (Tax Deduction at Source), which I think is in tune with 10-12% of the total retainership fee.
Retainer, from a finance and accounts angle, is like a vendor to your company. He needs to submit the bill, and the company needs to pay him the fee.
Regards,
Amit
From India, New Delhi
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Retainer, from a finance and accounts angle, is like a vendor to your company. He needs to submit the bill, and the company needs to pay him the fee.
Regards,
Amit
From India, New Delhi
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Salary-Note.doc
SALARY SHEET CALCULATION.xls