My company is paying extra to the employees who work on Sundays and other holidays. But the amount is calculated based on the basic salary and not on CTC (only for extra days). All such employees are earning a monthly salary of more than Rs. 50,000, and the company is paying PF and for medical insurance. I was wondering whether it is specifically against the law to do so?
From India, New Delhi
Acknowledge(0)
Amend(0)
2From India, New Delhi
Acknowledge(0)Amend(0)
Dear friend, I wish to congratulate you for doing good for your employees. Don't get confused with 'Take Home pay' and CTC. Many of the components of CTC are not payable as part of 'salary' month to month, like 'gratuity, bonus, leave salary contributions' which are deferred payments (accrued but not due), payable only when the employees become eligible for the same and become due. Therefore, there is nothing illegal in what you are currently paying.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
For work rendered on Sunday or a holiday, the remuneration has to be paid at par with any other working day. It should be based on the "Gross Salary" for the month. Neither should you pay according to the basic salary nor CTC.
As of now, how do you pay for the extra working day? Is it a cash payment, or do you route this payment through the monthly salary? If the latter, under what heading of the payslip do you show this payment?
For Mr. Kumar S: For the extra workday, why should an employee get paid as per the basic and not as per the gross salary? In many companies, the basic is typically between 30% and 50%. Therefore, if paid according to the basic, would it not result in a loss for the employee?
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
As of now, how do you pay for the extra working day? Is it a cash payment, or do you route this payment through the monthly salary? If the latter, under what heading of the payslip do you show this payment?
For Mr. Kumar S: For the extra workday, why should an employee get paid as per the basic and not as per the gross salary? In many companies, the basic is typically between 30% and 50%. Therefore, if paid according to the basic, would it not result in a loss for the employee?
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
If you are talking about annualleave under Factories Act, then you have to pay full wages including DA,but excluding OT and bonus.See sec 80.
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
I have to clarify this point, as per extant rules, OT wages are to be paid on the gross salary and not restricted to Basic pay alone. This would include Basic+DA+and other routine allowances. In various cases, courts have concluded it shall be 1 1/2 times of the salary, which is clearly Basic + DA + HRA + CCA and other allowances paid as a routine.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Creating a Competitive Salary Structure.doc
Salary Structure.zip