Dear All, I am Sidharth Kumar Srivastava,I am very to new HRM and want you all to help and guide me to be a master in HRM. Especially in payroll and appraisal. I have some technical issues while making payroll and appraisal sheet because i just started as a HR professional. Looking forward to listen positive replies asap to be perfect HR.
From India, Varanasi
From India, Varanasi
4249
Dear Sir,
While making salary breakups, I get some problems in bifurcations and percentage of BASIC,DA,HRA,Other Allowance. How will my company be in benefits in contribution of PF and ESI? when to remove someone from PF and ESI ? Other deductions? Gratuity ? I was told to work on appraisal with Goal Sheet based on the Balanced Scorecard method as a framework for evaluating staff performance.
These are some problems i am facing being a new in this.
From India, Varanasi
While making salary breakups, I get some problems in bifurcations and percentage of BASIC,DA,HRA,Other Allowance. How will my company be in benefits in contribution of PF and ESI? when to remove someone from PF and ESI ? Other deductions? Gratuity ? I was told to work on appraisal with Goal Sheet based on the Balanced Scorecard method as a framework for evaluating staff performance.
These are some problems i am facing being a new in this.
From India, Varanasi
If your objective is to reduce the statutory burden on your company by way of PF, ESI etc, I am sorry to say that there is no law which states that your salary should have bifurcation other than a Basic pay and dearness allowance. Unfortunately, these two will form part of all statutory payments. There cannot be a salary structure which has elements like Basic and Variable Dearness allowance less than what is as per the Minimum Wages notification of the state.
Like price of any product is fixed considering the demand and supply, Salary is also decided on the basis of the demand and supply. Based on that the employer and the employee agree on an amount, ie, the salary. It will change depending upon two factors, ie, one should be compensated for the increase in the cost of living and rewarded for his performance. The former will be reflected in the increase in DA and the latter should be made available in the basic pay itself. Any other allowance that the employer decides to pay or the employee demands may be put in allowances other than DA.
Regarding contributions to ESI and PF, what the law says is that it should be on total emoluments and not just on basic pay and DA alone. There are court verdicts and departmental circulars also. But the practice is to pay it on Basic and DA. It will end up in disputes, litigation etc.
Gratuity is payable only when an employee leaves the company after rendering some five years' service. Though for death cases, the qualifying service of five years shall not apply, we provide for the same every year in the balance sheet. The Payment of Gratuity Act is very clear about the definition of wages and it is expected to have all allowance in its fold. But in practice it is paid on Basic pay and DA only.
Therefore, pay structuring, though an art, is a science which should be aligned with law in force,
Regarding performance appraisal based on Balanced Score Card, I would ask Mr. Dinesh Divekar to give some inputs because I am not an authority to talk about BSC. Dinesh Sir please advise.
From India, Kannur
Like price of any product is fixed considering the demand and supply, Salary is also decided on the basis of the demand and supply. Based on that the employer and the employee agree on an amount, ie, the salary. It will change depending upon two factors, ie, one should be compensated for the increase in the cost of living and rewarded for his performance. The former will be reflected in the increase in DA and the latter should be made available in the basic pay itself. Any other allowance that the employer decides to pay or the employee demands may be put in allowances other than DA.
Regarding contributions to ESI and PF, what the law says is that it should be on total emoluments and not just on basic pay and DA alone. There are court verdicts and departmental circulars also. But the practice is to pay it on Basic and DA. It will end up in disputes, litigation etc.
Gratuity is payable only when an employee leaves the company after rendering some five years' service. Though for death cases, the qualifying service of five years shall not apply, we provide for the same every year in the balance sheet. The Payment of Gratuity Act is very clear about the definition of wages and it is expected to have all allowance in its fold. But in practice it is paid on Basic pay and DA only.
Therefore, pay structuring, though an art, is a science which should be aligned with law in force,
Regarding performance appraisal based on Balanced Score Card, I would ask Mr. Dinesh Divekar to give some inputs because I am not an authority to talk about BSC. Dinesh Sir please advise.
From India, Kannur
Dear Siddharth,
To know how to design KPIs and KRAs, one requires to work under an experienced person. Anyway, I have given many replies on this subject. The links to the few replies are as below:
https://www.citehr.com/609486-guidan...ml#post2419083
https://www.citehr.com/551865-perfor...ml#post2284289
https://www.citehr.com/375151-involv...ml#post1724770
Thanks,
Dinesh Divekar
For Mr Madhu TK: - Thanks for your recommending name. Regards.
From India, Bangalore
To know how to design KPIs and KRAs, one requires to work under an experienced person. Anyway, I have given many replies on this subject. The links to the few replies are as below:
https://www.citehr.com/609486-guidan...ml#post2419083
https://www.citehr.com/551865-perfor...ml#post2284289
https://www.citehr.com/375151-involv...ml#post1724770
Thanks,
Dinesh Divekar
For Mr Madhu TK: - Thanks for your recommending name. Regards.
From India, Bangalore
Payroll management and performance appraisal management are two distinct areas.
Pay roll management deals with compensation and considerations given to employees.Which includes calculating emoluments and statutory compliance as per the legal structures.
Performance appraisal is best explained by Dinesh Divekar sir.
From India, Vadodara
Pay roll management deals with compensation and considerations given to employees.Which includes calculating emoluments and statutory compliance as per the legal structures.
Performance appraisal is best explained by Dinesh Divekar sir.
From India, Vadodara
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Payroll Process .doc
Payroll process.ppt
Payroll Process Dashboard sample.xls