So, in a startup based in Maharashtra, we are a 6-employee food e-commerce startup. Some employees have a payment of 8000 per month. What should be their breakdown as basic pay and other allowances? Is there anything more I should know? Thanks.
From India, Pune
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From India, Pune
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Salary Breakdown for Below Minimum Wages
Rs 8000 per month is a salary that is less than the minimum wages notified by the government. For such a small amount, what salary breakup do you expect? Why should there be a salary breakup when the salary is less than the minimum wages? What is the legality of breaking up a salary that is less than the statutory salary?
There is no need to break up a salary of, say, 8000 rupees; it should be paid as a consolidated amount. Even if you break it up for formality, for all legal requirements, the salary would still be considered as a whole. Most statutory coverages would only start when your number of employees reaches at least 10. Until then, you should continue with the present system. Once you start paying more than the statutory wages, the additional amount can be allocated under some allowances.
From India, Kannur
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4526Rs 8000 per month is a salary that is less than the minimum wages notified by the government. For such a small amount, what salary breakup do you expect? Why should there be a salary breakup when the salary is less than the minimum wages? What is the legality of breaking up a salary that is less than the statutory salary?
There is no need to break up a salary of, say, 8000 rupees; it should be paid as a consolidated amount. Even if you break it up for formality, for all legal requirements, the salary would still be considered as a whole. Most statutory coverages would only start when your number of employees reaches at least 10. Until then, you should continue with the present system. Once you start paying more than the statutory wages, the additional amount can be allocated under some allowances.
From India, Kannur
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Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf
Statutory Compliance.zip