Dear Seniors, please assist me with this topic. I'm working in a security agency and need to quote rates to clients, including a breakdown of salary payable and statutory compliance. The mandatory components include EPF, ESI, Bonus, Leave with wages, and Gratuity. Additionally, there are other charges for weekly off (reliever charges).
Some agencies are quoting rates for 12 hours, with an extra charge for an additional 4 hours at normal rates, not as per overtime rules.
I am unsure about what percentage to charge for Leave with wages and Gratuity, which are typically 4.17% and 4.81%, respectively. I do not know the calculation behind these percentages.
I have attached the calculation for your reference. Please confirm the salary pattern as well. In a month, there are 30 days. Can any employee work 30 days straight in the attendance sheet or muster roll? I have seen cases where they mark 30 days of full attendance with no weekly off but have charged reliever charges, claiming to have paid extra salary to the guard.
Please confirm the ethical way for both sides, on the employer's part as well as the employee's part. I am waiting for your reply.
From India, Patiala
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3Some agencies are quoting rates for 12 hours, with an extra charge for an additional 4 hours at normal rates, not as per overtime rules.
I am unsure about what percentage to charge for Leave with wages and Gratuity, which are typically 4.17% and 4.81%, respectively. I do not know the calculation behind these percentages.
I have attached the calculation for your reference. Please confirm the salary pattern as well. In a month, there are 30 days. Can any employee work 30 days straight in the attendance sheet or muster roll? I have seen cases where they mark 30 days of full attendance with no weekly off but have charged reliever charges, claiming to have paid extra salary to the guard.
Please confirm the ethical way for both sides, on the employer's part as well as the employee's part. I am waiting for your reply.
From India, Patiala
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In the context of determining the charges for Leave with Wages and Gratuity for security guards, it's essential to adhere to the statutory requirements and ethical practices. Here are some practical steps to consider:
1. Understanding Statutory Requirements:
- Leave with wages and Gratuity percentages are typically set by labor laws or company policies. Verify the specific percentages mandated by the relevant labor laws in India, particularly for the state of Tamil Nadu.
2. Calculation of Leave with Wages and Gratuity:
- The percentages for Leave with Wages (4.17%) and Gratuity (4.81%) are usually calculated based on the employee's basic salary. Ensure the correct base salary is used for these calculations.
3. Ethical Considerations:
- It's crucial to ensure that employees are compensated fairly and in compliance with labor laws. Avoid practices that exploit loopholes or compromise on statutory benefits.
4. Employee Work Schedule:
- Verify the work schedule and ensure that employees are not overworked or deprived of mandatory rest periods such as weekly offs. Adherence to work-hour regulations is essential for both employee well-being and legal compliance.
5. Transparency and Documentation:
- Maintain transparent records of employee attendance, salary components, and statutory deductions. This documentation helps in ensuring compliance and resolving any disputes that may arise.
6. Consultation and Compliance:
- Consider consulting with HR experts or legal advisors to ensure that the salary structure, including Leave with Wages and Gratuity, complies with the law and industry standards.
By following these steps and ensuring transparency and compliance, you can establish a fair and ethical salary structure for security guards while meeting statutory obligations and fostering a positive employer-employee relationship.
From India, Gurugram
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1. Understanding Statutory Requirements:
- Leave with wages and Gratuity percentages are typically set by labor laws or company policies. Verify the specific percentages mandated by the relevant labor laws in India, particularly for the state of Tamil Nadu.
2. Calculation of Leave with Wages and Gratuity:
- The percentages for Leave with Wages (4.17%) and Gratuity (4.81%) are usually calculated based on the employee's basic salary. Ensure the correct base salary is used for these calculations.
3. Ethical Considerations:
- It's crucial to ensure that employees are compensated fairly and in compliance with labor laws. Avoid practices that exploit loopholes or compromise on statutory benefits.
4. Employee Work Schedule:
- Verify the work schedule and ensure that employees are not overworked or deprived of mandatory rest periods such as weekly offs. Adherence to work-hour regulations is essential for both employee well-being and legal compliance.
5. Transparency and Documentation:
- Maintain transparent records of employee attendance, salary components, and statutory deductions. This documentation helps in ensuring compliance and resolving any disputes that may arise.
6. Consultation and Compliance:
- Consider consulting with HR experts or legal advisors to ensure that the salary structure, including Leave with Wages and Gratuity, complies with the law and industry standards.
By following these steps and ensuring transparency and compliance, you can establish a fair and ethical salary structure for security guards while meeting statutory obligations and fostering a positive employer-employee relationship.
From India, Gurugram
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Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf