Legal Question in Employment Law in India

Dear Sir/Madam,

I my company we have salary structure as per following.

Basic

HRA

Conveyance

Special Allowance (For all employee more than & below 15000)

But as per consultant they told me please remove the Special allowance & merge with Basic HRA & Conveyance. Please suggest to me this wrong or right.


Asked on 5/13/15, 12:37 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

13.05.2015

Dear Sir / Madam,

Special Allowance is provided in the salary structure by Companies so as to minimize the Company's statutory contributions like Provident Fund and Gratuity, which are based on the Basic Salary. If the Special Allowance is merged in the Basic, the Provident Fund and Gratuity entitlement will rise, which is beneficial if you are an employee. If you are the employer, it will increase your payroll cost as explained above.

Regards,

Read more
Answered on 5/13/15, 3:05 am


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