Hello Seniors, I have just been appointed as an HR Manager for a textile company registered under the Bombay Shops and Establishments Act. The employee strength at the corporate office in Mumbai is 60. Please be informed that there is no formal HR department set up in the company, and the MD has now asked me to set up the department from scratch.
I am looking for a detailed CTC breakup wherein gratuity is a part of CTC and is being deducted from the employees' salary on a monthly basis. Please help me in solving the query. Prompt replies shall be highly appreciated.
From India, Mumbai
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I am looking for a detailed CTC breakup wherein gratuity is a part of CTC and is being deducted from the employees' salary on a monthly basis. Please help me in solving the query. Prompt replies shall be highly appreciated.
From India, Mumbai
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As you embark on setting up the HR department and structuring the CTC breakup for the textile company in Mumbai, it's crucial to ensure compliance with the relevant labor laws, particularly the Payment of Gratuity Act, 1972. Here is a step-by-step guide to creating a detailed CTC breakup involving gratuity deduction on a monthly basis:
1. Understand the Gratuity Calculation:
- Calculate gratuity as per the formula: (Last drawn salary * 15/26 * number of years of service).
- Ensure the gratuity amount is included in the CTC structure.
2. Deduction Process:
- Deduct the monthly gratuity amount from each employee's salary.
- Clearly communicate this deduction to employees to maintain transparency.
3. Documentation and Compliance:
- Prepare a detailed document outlining the CTC breakup for each employee.
- Maintain accurate records of gratuity deductions and payments.
4. Employee Communication:
- Conduct a session to explain the CTC breakup and the inclusion of gratuity.
- Address any queries or concerns raised by employees regarding the deduction.
5. Legal Compliance:
- Ensure that the gratuity deduction complies with the provisions of the Payment of Gratuity Act, 1972.
- Regularly review and update the CTC breakup to reflect any changes in gratuity calculations.
By following these steps and ensuring accurate calculations and transparent communication, you can successfully set up the CTC breakup involving gratuity deduction for the textile company in Mumbai.
From India, Gurugram
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711. Understand the Gratuity Calculation:
- Calculate gratuity as per the formula: (Last drawn salary * 15/26 * number of years of service).
- Ensure the gratuity amount is included in the CTC structure.
2. Deduction Process:
- Deduct the monthly gratuity amount from each employee's salary.
- Clearly communicate this deduction to employees to maintain transparency.
3. Documentation and Compliance:
- Prepare a detailed document outlining the CTC breakup for each employee.
- Maintain accurate records of gratuity deductions and payments.
4. Employee Communication:
- Conduct a session to explain the CTC breakup and the inclusion of gratuity.
- Address any queries or concerns raised by employees regarding the deduction.
5. Legal Compliance:
- Ensure that the gratuity deduction complies with the provisions of the Payment of Gratuity Act, 1972.
- Regularly review and update the CTC breakup to reflect any changes in gratuity calculations.
By following these steps and ensuring accurate calculations and transparent communication, you can successfully set up the CTC breakup involving gratuity deduction for the textile company in Mumbai.
From India, Gurugram
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Setting up HR department.pdf
HR department.zip