Res Mr. Kamesh, Can you pl. let me know the section or notification as you said (one off is to be given after working 3 days for contract labor). Regards, Hem Dev Thapar
From India, Pune
From India, Pune
Hello Seniors,
Pl reply is it compulsory to have one standard salary structure for all the Employees across the board (% wise breakup under different heads)? Is it possible to have different salary structure/break up for different class of employees in the same company/establishment? Expecting feedback with pointers to the enforcing legal acts upon the same.
From India, Delhi
Pl reply is it compulsory to have one standard salary structure for all the Employees across the board (% wise breakup under different heads)? Is it possible to have different salary structure/break up for different class of employees in the same company/establishment? Expecting feedback with pointers to the enforcing legal acts upon the same.
From India, Delhi
Hi Ruby sharma
an organisation is itself is a structure of various roles which are not identical but vary with the degree of powers, responsibilities and discretions and vary with the value of contributions to the organisations and then how the salary structure can be uniform.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
54an organisation is itself is a structure of various roles which are not identical but vary with the degree of powers, responsibilities and discretions and vary with the value of contributions to the organisations and then how the salary structure can be uniform.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
Dear Mr. Saikumar
Thanks for the reply and detailed. Actually I want to confirm whether we can biffuricate salary in different percentage like in case basic salary can be 60% of gross and for low class employee basic salary can be 80% or different. Pl confirm as some of our old employee doesnot want to pay the PF contribution and if we fix their basic above 6500/- (gross is approx 10 K)we can get the exemption from the same. I will highly obliged your answer. If I am not mistaken bifurication salary is depends on company norms and every employees salary should be bifuricated in the same ratio. Pl confirm and give me the solution.
Thanks & Regards
Ruby Sharma
From India, Delhi
Thanks for the reply and detailed. Actually I want to confirm whether we can biffuricate salary in different percentage like in case basic salary can be 60% of gross and for low class employee basic salary can be 80% or different. Pl confirm as some of our old employee doesnot want to pay the PF contribution and if we fix their basic above 6500/- (gross is approx 10 K)we can get the exemption from the same. I will highly obliged your answer. If I am not mistaken bifurication salary is depends on company norms and every employees salary should be bifuricated in the same ratio. Pl confirm and give me the solution.
Thanks & Regards
Ruby Sharma
From India, Delhi
Dear Hem Dev,
1.It i snot required to have same structure/breakup for all the employees. It's totally depends on the company policy.
2.Being a H.R Person we should explore the the possibilities of equal treatment for all the employees. Differentiation should not be there.
3. If employees fall under Minimum wage category, basic should not be less then the Minimum wage ideally, however it is not vital.
Regards,
Kamesh Khatana
From India, Gurgaon
1.It i snot required to have same structure/breakup for all the employees. It's totally depends on the company policy.
2.Being a H.R Person we should explore the the possibilities of equal treatment for all the employees. Differentiation should not be there.
3. If employees fall under Minimum wage category, basic should not be less then the Minimum wage ideally, however it is not vital.
Regards,
Kamesh Khatana
From India, Gurgaon
Hi Ruby sharma
You need to classify the employees depending up on the nature of work , their responsibilities, knowledge levels, skill levels and qualifications. Iam talking of employees in general but not of merely workmen cadre. You can thereafter frame a wage scale that is proportionate to their knowledge, skills and qualifications. Please ensure that the wage or salary scale is uniform for the employees falling under the same class. For example, you classify ceratian employees possessing gradution qualifications and knowledge of English and skills of writing or updating records as "Clerks" or "Assistants", then all those employees so designated, shall have the same uniform scale whether they are working in Admin or Accounts Dept. It is also prudent to ensure that the wage scale framed by you shall also be in tune with those in similar industries located in your region. This will also give an idea about how to bifurcate the components of salary for any class of employees.Similarly, so far as the employees in manual unskilled, skilled and clerical cadre is concerned, you have also the minimum wages notified by the State Government for these classes of employees as the basis for bifurcating the salary components.
as regards payment of P.F contribution on pay beyond Rs.6500/- p.m, I say that what is mandatory under the P.F Act is payment of contribution on pay upto Rs.6500/- which is complied by the company and the employee. Therefore if some senior employers who are already covered under the P.F Act, are not willing to pay contribution beyond Rs.6500/-p.m, there is no non-compliance.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
You need to classify the employees depending up on the nature of work , their responsibilities, knowledge levels, skill levels and qualifications. Iam talking of employees in general but not of merely workmen cadre. You can thereafter frame a wage scale that is proportionate to their knowledge, skills and qualifications. Please ensure that the wage or salary scale is uniform for the employees falling under the same class. For example, you classify ceratian employees possessing gradution qualifications and knowledge of English and skills of writing or updating records as "Clerks" or "Assistants", then all those employees so designated, shall have the same uniform scale whether they are working in Admin or Accounts Dept. It is also prudent to ensure that the wage scale framed by you shall also be in tune with those in similar industries located in your region. This will also give an idea about how to bifurcate the components of salary for any class of employees.Similarly, so far as the employees in manual unskilled, skilled and clerical cadre is concerned, you have also the minimum wages notified by the State Government for these classes of employees as the basis for bifurcating the salary components.
as regards payment of P.F contribution on pay beyond Rs.6500/- p.m, I say that what is mandatory under the P.F Act is payment of contribution on pay upto Rs.6500/- which is complied by the company and the employee. Therefore if some senior employers who are already covered under the P.F Act, are not willing to pay contribution beyond Rs.6500/-p.m, there is no non-compliance.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
Hello Saikumar,
Thanks for the detailed reply, actually i just joined this company and here earlier there was no bifurication in salary therefore gross is the same as basic and therefore very few employees are coming under the criteria of PF (Rs. 6500/-) but now as per Industry norms or standard we would like to bifuricate (basic+conveyance+ HRA+ Mis etc.) the salary and therefore want to know, Can we give salary bifurication to some of the employees of basic as 60% of gross and other employees 80% basic of gross, as now previous employees does not want to deduct their PF contribution so we want to make their basic above 6500/-.
Pl clarify as I came to know some of the companies are making the salary bifurication employee to employee basis just to give the better facility in tax benefit.
Really highly appreciate if you give me reply so that we can safe guard from legal aspects.
Thanks in advance
Ruby Sharma
From India, Delhi
Thanks for the detailed reply, actually i just joined this company and here earlier there was no bifurication in salary therefore gross is the same as basic and therefore very few employees are coming under the criteria of PF (Rs. 6500/-) but now as per Industry norms or standard we would like to bifuricate (basic+conveyance+ HRA+ Mis etc.) the salary and therefore want to know, Can we give salary bifurication to some of the employees of basic as 60% of gross and other employees 80% basic of gross, as now previous employees does not want to deduct their PF contribution so we want to make their basic above 6500/-.
Pl clarify as I came to know some of the companies are making the salary bifurication employee to employee basis just to give the better facility in tax benefit.
Really highly appreciate if you give me reply so that we can safe guard from legal aspects.
Thanks in advance
Ruby Sharma
From India, Delhi
tHANKS vERY mUCH. Will youplease advise more in this regard . The popsition is as under:
We engage the workers through labopur supply contractors. And due to the urgency some of the workers are asked to perform continius duty for 30 days in a month or even some of tthem are asked also perform Night duty, Such as Drivers, Plant operators etc and in a month they earnes Duty about 40 to 45 days ( Eight Hour per day) We pay them as under spouse the monthly wages is Rs 6000/- and a person performed 45X8hours 360 hourws i.e 45 mandays duty in a month then he is paid as under
6000/26 * 45
Total Rs 10385
Is there any problum from any of the Labour law or act
Please Guide us
From India, Chandigarh
We engage the workers through labopur supply contractors. And due to the urgency some of the workers are asked to perform continius duty for 30 days in a month or even some of tthem are asked also perform Night duty, Such as Drivers, Plant operators etc and in a month they earnes Duty about 40 to 45 days ( Eight Hour per day) We pay them as under spouse the monthly wages is Rs 6000/- and a person performed 45X8hours 360 hourws i.e 45 mandays duty in a month then he is paid as under
6000/26 * 45
Total Rs 10385
Is there any problum from any of the Labour law or act
Please Guide us
From India, Chandigarh
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