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p_sanjay12
Subject - Regarding merge of HRA & other allowances to Salary
Dear Seniors,
You all are requested to kindly guide me the benefit of merging the HRA, Special Allowances, bonus, Leave Pay & Medical in the BAsic Salary.
Our Esteemed Organisation provides the following benefits to the employees along with Basic Salary:
1) Special Allowance as per Grading of Staff
2) HRA
3) Bonus of 20% (released Yearly)
4) Medical equivalent to 1 month Basic Salary (Released yearly)
5) Leave Encashment equivalent to 1 month BAsic Salary (released yearly)
6) PF
7) ESIC
GSLI
Now the management is deciding to merge the Benefits from Sl. No. 1 to 5 in the BAsic Salary wef next FY.
Is is beneficial to the staff or not.
Pls reply.
Thanks

From India, Allahabad
pon1965
604

Yes, it is beneficial to staff as it will increase the retiral benefits as well as PF contribution. Pon
From India, Lucknow
saiseven
54

One obvious benefit is an employee stands to gain more D.A and more gratuity since both are linked to basic pay and also P.F if it is manned under your company's Trust and also in case of VRs since the VRS compensation is linked to basic pay..
B.Saikumar
Hr & Labour Law advisor
Mumbai

From India, Mumbai
rajusiachen
22

I agreed with the views given by Pon and Saikumar. The disadvantages (for the Management) is that a graded pay structure will not be implementable. For example,a new joinee with no experience wont know the perks of higher positions - salary will be on an individual, sans an hierarchy where a employee fits in. A Manager may get lesser Gross to his subordinate!
Rajusiachen

From India, Coimbatore
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