In the above vase only IT rules are applicable the to the above components. There is no hard and fast rule to include all the components in the salary. The basic components are necessary to be included as per legal percentage of it's deduction from the total salary
Salary issues of private company employees
This question is about salary related issues of private company employees. It's a small manufacturing business from Odisha having nine employees. Please answer the following queries that I have in this regard. 1) Can the minimum wages calculation be based on hourly basis? (Ex: the minimum wage is 10,000 for unskilled worker and we pay 5000 for someone working 4 hours/day) 2) Whether monthly payment of 10k for 4 hours/day is fine for an accountant as per minimum wages act of Odisha? 3) Which is better mentioning In-hand salary/ CTC/ something else as remuneration in appointment letter? 4) Is it required to give HRA to private company employees in Odisha? If yes then how much percentage? 5) Whether HRA is included or excluded while calculating minimum wages in Odisha? 6) Whether DA required to be given for private company employees? 7) What are different components of salary that must be included in payslip for private company? 8) Is it necessary to mention different components of salary in appointment letter or single amount can be mentioned as remuneration? Looking forward to your reply. Thank you.
Asked 3 years ago in Labour
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4 Answers
You can go as per latest rules and regulations according to MCA. Below 9 employees you can suggest less than 20K income not require other facilities like PF, ESI etc.
So here you can go with according to Monthly fix salary and pay according to that to them.
HRA, DA, Basic salary comes when salary is more then 20K pm.
1) Dear client yes the minimum wages can be based on hourly basis in India be it be private company.
2) The minimum wage per day is Rs. 476 for highly skilled persons in Odisha so the salary of 10k for 4 hours per day is valid.
3) While CTC is the total salary package of an employee, the in-hand salary is what's left after all kinds of deductions. Thus, CTC reflects the total expenditure that an employer spends on an employee during a financial year. it’s important to know that the CTC is not the pay you take home. While the CTC is usually lucrative enough to put an employee on cloud nine, the in-hand salary sometimes tends to pop the bubble. But understanding that the CTC is the complete package and liable for deductions will save you any undue disappointment.
4) No HRA is not given to private sector company.
5) For private companies HRA is not included
1. Minimum wages act applies to any employment if it employs 1000 employees in the respective state. It does not apply to any employees in any undertaking owned by the Central government or of the federal railway, except with the consent of the central government.
Wages per month are calculated as 4.33 times if a weekly wage is defined.
2. Wages per month are calculated as 4.33 times if a weekly wage is defined. It is calculated as 4.33 times the standard hours per week if an hourly wage is given.
3. It depends on how the private company has framed its own rules
4. House Rent Allowance or HRA forms a salary component of most of the salaried individuals
- Actual rent paid minus 10% of the basic salary, or
- Actual HRA offered by the employer,
5. Salary refers to the sum of basic salary, dearness allowance (DA) and any other commissions, if applicable for the purpose of HRA calculation.
6. Dearness allowance is paid to only the employees of Central Government and public sector employees. HRA is available for both public and private sector employees. Dearness allowance is a fixed percentage of basic salary.
7. Basic Salary, Dearness Allowance, House Rent Allowance, Conveyance Allowance, Medical Allowance, Special Allowance, Professional tax, Tax Deducted at Source and Employee Provident Fund are the various components of a salary slip.
8. It depends on the company which is giving the offer letter to attract the employees.
