Hi,
Could you please help with how the salary calculation would change according to the new wage code? An example of the current structure is provided below:
Gross salary - 30000 (basic - 13500, HRA - 6600, conveyance - 9900)
Additional benefits:
Approximate sales incentive - 10000-15000
OT - 2000 (not applicable in all months)
Thank you.
From India, Malappuram
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Could you please help with how the salary calculation would change according to the new wage code? An example of the current structure is provided below:
Gross salary - 30000 (basic - 13500, HRA - 6600, conveyance - 9900)
Additional benefits:
Approximate sales incentive - 10000-15000
OT - 2000 (not applicable in all months)
Thank you.
From India, Malappuram
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Basic - 13,500/- per month, HRA - 6,600/- per month, Conveyance - 9,900/- per month, Sales incentive - 10,000/- per month, OT - 2,000/- per month (not regular), PF Employer - 12% of 13,500 = 1,620/- per month, Statutory Bonus - say 12,000/- minimum wages @ 8.33% - 1,000/- per month.
Now the total remuneration excluding OT is 42,620/- per month. 50% of 42,620/- = 21,310/- will be basic per month. 21,310/- will be other allowances including Employer's portion of PF & Statutory bonus - to be distributed accordingly minimizing other allowances.
In case of OT & Sales incentive (As both are variable) as and when they appear (Sales incentive more than 10,000/- per month), the same will be proportionately divided into 60:40. 60% may be added back to basic in the particular month & 40% to other allowances (OT, Sales incentive) to maintain a 50:50 condition of the total remuneration.
In the above calculation, Basic has crossed 21,000/- per month - may not be eligible for Statutory Bonus, and the calculation needs to be changed accordingly.
From India, New Delhi
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367Now the total remuneration excluding OT is 42,620/- per month. 50% of 42,620/- = 21,310/- will be basic per month. 21,310/- will be other allowances including Employer's portion of PF & Statutory bonus - to be distributed accordingly minimizing other allowances.
In case of OT & Sales incentive (As both are variable) as and when they appear (Sales incentive more than 10,000/- per month), the same will be proportionately divided into 60:40. 60% may be added back to basic in the particular month & 40% to other allowances (OT, Sales incentive) to maintain a 50:50 condition of the total remuneration.
In the above calculation, Basic has crossed 21,000/- per month - may not be eligible for Statutory Bonus, and the calculation needs to be changed accordingly.
From India, New Delhi
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We use an hr software for salary processing..so in that case,how would we be able to set this as fixed formula or % on components?
From India, Malappuram
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From India, Malappuram
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Please talk to your software provider and explain the need to them. If the laws of the land change, there is no alternative other than to redesign your software for salary processing. The most important thing is to restructure your salary system for all employees as soon as possible and then communicate with the software service provider. If the software is developed in-house, speak with the relevant IT personnel. This will be a significant project for all organizations and must be addressed properly.
From India, New Delhi
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From India, New Delhi
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SALARY SHEET CALCULATION.xls
152120-very-use ful-hr-manageme nt-software-bui lt-excel-psa-hr -manager-mainta in-payrrol-exce l-soft.zip