Respected all,
In my company, we were paying Rs. 20,000 per month as basic salary to an employee. The same has already been paid for the period April to October. Now, the employee wants the salary restructured so that he can take advantage of Medical Reimbursement, Leave Travel Concession, etc., which are exempted under the salary head.
Can we reduce the basic to Rs. 15,000 per month for the remaining period of November to March and pay the balance of Rs. (5,000 * 5) i.e. Rs. 25,000 for the remaining five months as medical reimbursement and leave travel concession?
Please help.
Regards,
Jyoti
From India, Calcutta
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In my company, we were paying Rs. 20,000 per month as basic salary to an employee. The same has already been paid for the period April to October. Now, the employee wants the salary restructured so that he can take advantage of Medical Reimbursement, Leave Travel Concession, etc., which are exempted under the salary head.
Can we reduce the basic to Rs. 15,000 per month for the remaining period of November to March and pay the balance of Rs. (5,000 * 5) i.e. Rs. 25,000 for the remaining five months as medical reimbursement and leave travel concession?
Please help.
Regards,
Jyoti
From India, Calcutta
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Dear Jyoti, Good Afternoon!!! kindly confirm that you are giving Rs. 20000/- as Basic or gross with any bifurcation..??
From India, New Delhi
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68From India, New Delhi
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Yes, you can restructure the salary. For more information in this regard or reference on salary administration info, you may visit this payroll resources page.
From India, Bangalore
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From India, Bangalore
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Absolutely right, Bhoopender. If an employee is a member of EPF, then PF contribution cannot be reduced in any case, which is directly related to Basic Salary. If not, then it can be reduced.
Regards,
Pradeep
From India, Gurgaon
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Regards,
Pradeep
From India, Gurgaon
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Thank you for the replies.
Please note:
The employee is not a member of EPF.
Rs. 20,000 is given as gross salary without any bifurcation.
Professional Tax of Rs. 130/- is deducted since it comes in the slab of 15000-25000.
No TDS has been deducted till now.
Bonus is separately paid @ 12.5% of (20000*12)
So can I restructure the salary as:
Basic Salary: 16000 p.m.
Transport Allowance: 1000 p.m.
Medical Reimbursement: 15,000 p.a.
Leave Travel Concession: 20,000 p.a.
Regards,
Jyoti
From India, Calcutta
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Please note:
The employee is not a member of EPF.
Rs. 20,000 is given as gross salary without any bifurcation.
Professional Tax of Rs. 130/- is deducted since it comes in the slab of 15000-25000.
No TDS has been deducted till now.
Bonus is separately paid @ 12.5% of (20000*12)
So can I restructure the salary as:
Basic Salary: 16000 p.m.
Transport Allowance: 1000 p.m.
Medical Reimbursement: 15,000 p.a.
Leave Travel Concession: 20,000 p.a.
Regards,
Jyoti
From India, Calcutta
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Dear Jyoti,
Hi,
This is not possible, dear, because it will affect his/her compensation structure. Although some organizations are giving LTC as per their norms and even paying it every two years after the confirmation of the said employee. Kindly check with your HR Head and the employee's Appointment letter, then only you can make the right decision.
Regards,
Bhagwan Tolani
Sr. HR
TM Group
From India, Mumbai
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Hi,
This is not possible, dear, because it will affect his/her compensation structure. Although some organizations are giving LTC as per their norms and even paying it every two years after the confirmation of the said employee. Kindly check with your HR Head and the employee's Appointment letter, then only you can make the right decision.
Regards,
Bhagwan Tolani
Sr. HR
TM Group
From India, Mumbai
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Hi, I have attached the best compensation structure. Rgds, Arul D.
From India, Madras
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From India, Madras
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The employee has no problem as he is doing so only for taxation benefit. So can I reduce the basic salary as given above in the middle of the year. Regards,
From India, Calcutta
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From India, Calcutta
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Hi Arul The CTC breakup is perfect except Max. exemption of Conveyance Allowance shown as Rs. 800/- which is pm ie Rs. 9600/- pa Chandrakant
From India, Mumbai
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From India, Mumbai
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