Hi,
What are the new compliance obligations for employer’s in new wage code?
Please share if available
Inshort, I would just say your CTC structure can have Allowances (HRA, Conveyance, Medical, SPA,etc) upto 50% of CTC only. Thus in short your Basic has to be 50% of CTC which in turn increase PF, Gratuity liabilities and reducing the overall Take-home Salary.
But at the same time, we can cap the PF deduction upto Rs. 1800 only (12% of Rs. 15000; 15000 is wage limit for PF), thus reducing the impacts on Net Salary.
But, before implementing anything in your respective organisation, please wait till respective State issues the Guidelines.
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agree ankit
it is always better to have simpler structure. even we can avoid conveyance, medical & SPA as there is no exemption for these now. so better to have the following as your CTC structure.
Basic
HRA
Special allowance
FBP (for tax exemption as reimbursement)
company PF
Gratuity
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Hi Ankit,
Is there any rules and regulations to follow on the PF deduction of Rs 1800 irrespective of the wage what we are paying to employee and restricting 15k wage limit for PF calculation.
Regards,
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As per the Compensation structure of most of the organization Apart from other allowances PF, Gratuity, Statutory Bonus, LTA, Variable PLI are the components shown in the CTC. However these components are not paid on monthly basis hence they are to be excluded while calculating 50% (Basic). 50 % of Gross salary is more appropriate.
Biggest challange is that overtime has been made part of wages. Overtime will be variable paid monthly and will make the entire calculation dynamic…
This dynamic working would be more rellavant to employees with lower salary… Be careful on this word OVERTIME…
THANKS
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Hi team,
Please help with formula to find out the employee’s absenteeism percentage rate on yearly bases.
Regards,
Shwetha
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