Respected All Readers
Greetings
Since last few years, the corporates are doing with C-2-C (Cost to Company) concept for fixing the salaries of their newly recruited employees and also existing for existing employees. The following are componets of Cost to Company -
1. Basic Salary (25% of C-2-C subject to a minimum of 6526/- per month for employees drawing C-2-C of 7000/- per month and for employees drawing less than 7000/- per month it is 4350/- (minimum wages prescribed under law for skilled person) +
2. Special Pay (Difference of C-2-C less out go on all accounts) +
3. House Rent Allowance @ 50% of Basic Salary +
4. Statutory Bonus @ 11% of Basic Salary +
5. Companies Contribution towards ESIC 4.75% of total emoluments less PF Contribution +
6. Companies Contribution towards PF 12% of Basic Salary +
7. Encashment of Earned Leave @ 1 leave for every 20 days worked +
8. Gratuity @ Basic Annual Salary / 26 X 15 days
Request all readers to give your valuable inputs regarding its validity and final out come in light of long term HR relationship with employees inlinght of reducing attrition.
Regards
Jawaharlal Moondra
From India, Jodhpur
32Greetings
Since last few years, the corporates are doing with C-2-C (Cost to Company) concept for fixing the salaries of their newly recruited employees and also existing for existing employees. The following are componets of Cost to Company -
1. Basic Salary (25% of C-2-C subject to a minimum of 6526/- per month for employees drawing C-2-C of 7000/- per month and for employees drawing less than 7000/- per month it is 4350/- (minimum wages prescribed under law for skilled person) +
2. Special Pay (Difference of C-2-C less out go on all accounts) +
3. House Rent Allowance @ 50% of Basic Salary +
4. Statutory Bonus @ 11% of Basic Salary +
5. Companies Contribution towards ESIC 4.75% of total emoluments less PF Contribution +
6. Companies Contribution towards PF 12% of Basic Salary +
7. Encashment of Earned Leave @ 1 leave for every 20 days worked +
8. Gratuity @ Basic Annual Salary / 26 X 15 days
Request all readers to give your valuable inputs regarding its validity and final out come in light of long term HR relationship with employees inlinght of reducing attrition.
Regards
Jawaharlal Moondra
From India, Jodhpur
Dear Mr Jawaharlal,
Whatever re-structuring your organization is doing can not be made applicable to old employees without giving notice for change under ID Act.Especially when they are put in dis advantageous position. Higher basic pay cannot be reduced to lower with the % to CTC as shown above. Also all those allowances cannot be reduced where ever they are linked to their basic %ges. This will affect adversely old employees for their gratuity and leave encashments also. All employees covered under \'Workmen\' under ID Act are to be given notice for change and written acceptance needs to be obtained before implemention.
Thanks,
Manish S Joshi
From India, New Delhi
Whatever re-structuring your organization is doing can not be made applicable to old employees without giving notice for change under ID Act.Especially when they are put in dis advantageous position. Higher basic pay cannot be reduced to lower with the % to CTC as shown above. Also all those allowances cannot be reduced where ever they are linked to their basic %ges. This will affect adversely old employees for their gratuity and leave encashments also. All employees covered under \'Workmen\' under ID Act are to be given notice for change and written acceptance needs to be obtained before implemention.
Thanks,
Manish S Joshi
From India, New Delhi
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