Higher Base Salary and Bonus

Ask the Community HR
1

Hi,

Is giving a high base salary to employees better than giving bonus?

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2

hi Ann, this is a high type of employee welfare activity and ultimately employee will satisfy this activity. If we provide a bonus, the tax will be deducted on a one-time basis and if salary gets increase tax will be prorated basis. ultimately employ will comfort on this.

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3

Hi @Anisha

Paying a higher Basic Salary means it increases the Statutory contributions like PF, ESI, Gratuity.
If the company is willing to give more benefit to the employees then it is a good way to proceed.

By this employee can also claim more HRA exemptions as well if they are paying rent.

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