Dear Seniors,
Is salary break-up necessary legally. Can we pay say a consolidated amount say Rs. 15000/- to an employee without any breakups like Basic, HRA, Allow etc and pay PF, ESIC, PT on Rs. 15000/-
If salary break-up is necessary can you guide me regarding which law or rule states this
From India, Bharuch
16Is salary break-up necessary legally. Can we pay say a consolidated amount say Rs. 15000/- to an employee without any breakups like Basic, HRA, Allow etc and pay PF, ESIC, PT on Rs. 15000/-
If salary break-up is necessary can you guide me regarding which law or rule states this
From India, Bharuch
Determination of wage or salary is ordinarily an issue of demand and supply prevailing in the employment market. However, in organised sectors it is a matter of collective bargaining between the labour and management.Of course legal restrictions are there as to the periodicity, mode of payment of wages and deductions, if any to be effected, equality of fixation and payment of remuneration for equal work irrespective of sex and fixation and payment of wages not below certain rates statutorily fixed and revised periodically in respect of certain employments. So far as my knowledge goes, there is no law prescribing wage structure, if any. Again it is a matter of accounting as well as administrative convenience and discussion between the employer and the employed. Only the indirect monetary commitments of the employer such as contributions to PF, ESI, Bonus, Gratuity etc., normally results in breaking up of the total wages into various components like basic, dearness allowance, HRA and the like.
From India, Salem
From India, Salem
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