Define your Salary Structure

Transcription

1 Define your Salary Structure Powered By Teams HR & Finance

2 Introduction We are pleased to inform you that you can now revise the BASIC component in your salary structure as per norms laid down by the Organization. This year based on Wage laws and Management decision, all employees are requested to change their Basic to ensure that it is at least 30% of their CTC. The maximum limit is as specified later in this presentation and is dependent on a person s grade. If this minimum level is not selected by the employee, the change will be implemented centrally via HR & Payroll systems and fresh salary annexures will be issued to all. The change will be effective 1st April Please note that a change in Basic will not have any impact on the Cost to Company (CTC). To facilitate these changes, you can use the existing module in MyAscent Payroll through which you can revise your Basic and even re-allocate your Personal Pay into the prescribed Basket of Allowances.

3 Important Communication IMPORTANT: Further you are requested to note that with effect from 1 st April, 2016, all future ex-gratia Variable pay/ Performance pay would include prospective/ retrospectively increased or additional Statutory payments liable to be paid by the Company because of changes in statues. Also the Company reserves the right to adjust/ recover such increased/ additional statutory payments from the Cost to Company (CTC). Further the Company will not be liable to pay any amount over and above CTC which includes all statutory payments applicable. Company reserves right to change your salary structure at any time by treating this as required notice, if any, under any Law & without any separate/further notice/ intimation. This is basis the fact that the CTC is inclusive of all liability/ compensation obligations of the Company [whether towards statutory payments as well as towards Basic pay and other components of pay] as mentioned in Annexure to Appointment Letter.

4 Process - How to access the Module You can log in to this module through HRIS>>Salary>>MyAscent>>Define salary structure

5 Process: Understanding the Module When you login, you will see all the components of your Existing salary structure, post Increments of April 2016, under the Column named Old The salary components under the Old column reflects your current salary structure post Apr 16 salary revision cycle. The salary components under the New Choice column need to be defined by you. All components here are Annual except for the Gross per month in Pay slip.

6 Process: Understanding the Module (contd..) Here are some facts about the Module * If you enter an amount not corresponding to the min. max. limits, the system will not allow you to save your details. Self Details Your E- Code, Name & Current CTC will be captured automatically Minimum This reflects the minimum amounts you can allocate based on your Grade & Salary structure Maximum - This reflects the maximum amounts you can allocate based on your Grade & Salary structure

7 Process Understanding the Module (contd..) Here are some more facts about the Module All Fields in Blue CANNOT be modified by you and are automatically calculated by the system * If you enter an amount not corresponding to the min. max. limits, the system will not allow you to save your details. *All fields in White CAN be modified by you as per the limits prescribed

8 Understanding your Salary Components Here are some facts about your Salary Structure *Level & Grade L1 B (Junior Executive) L1 A ( Executive) L1 A ( Senior Executive) L2 B ( Assistant Manager) L2 B ( Deputy Manager) L2 A (Manager) L3 B ( Senior Manager) L3 A (AVP) *Basic as a % of CTC 35% 40% L4 (Sr. VP & VP) 45% L5 (All President) 50% Your Basic component cannot be lower than 30% of your CTC. Your Basic component can not be lower than your current Basic and also cannot be greater than the %* of CTC as per Co. norms. Employees may increase their Basic component to have a healthy Basic to CTC ratio.

9 Understanding your Salary Components (contd..) Here are some facts about your Salary Structure PF, Gratuity & HRA will be auto calculated by the system based on the New Basic you opt for Medical Allowance, Transportation (Conveyance) Allowance will remain unchanged as it is not dependant on your Basic component

10 Understanding your Salary Components (contd..) Here are some facts about your Salary Structure Advanced Statutory Bonus is not applicable for those with Basic of INR or above per month & hence this component will not appear in their salary structure. For those with Basic lesser than INR per month, the computation is basis Minimum wages law and Basic component of your salary structure, as per computation vetted by our Legal team & Management. Please note change in Advances Statutory Bonus does not impact CTC but is adjusted from Personal Pay.

11 Understanding your Salary Components (contd..) Your Personal Pay amount can be re-allocated by you in the Basket of Allowance provided to you for the purpose of saving Tax. The Basket of Allowance (BoA) comprises of: Additional HRA LTA Education Allowance Food card You can allocate your entire Personal Pay in the BoA. But please note, the sum of all BoA components cannot be greater than your Personal Pay. Personal Pay gets automatically calculated by the system on the basis of the formula given below: Personal Pay = CTC-(Basic + HRA + Conveyance +Medical Allowance +Advance Statutory Bonus (where applicable) +Add HRA + Education allowance + LTA+ Food card + NPS + PF +Gratuity)

12 Understanding your Basket of Allowances (BoA) Additional HRA If you opt for Additional HRA, you are requested to please input your Annual rent amount online LTA - If you opt for LTA, you are requested to update the Annual amount online. As per norms, the amount allocated under LTA will be excluded from your monthly salary. It will be paid only after you produce LTA bills and claim for LTA. Education Allowance- This component too needs to be updated on the module if you chose to avail the benefit. The norms are Rs. 100 per month per child, maximum 2 children and Rs. 300 per month per child, maximum 2 children. If children are in hostel. Food Card- The employee can choose a pre-paid HDFC bank food plus card which can be used at the restaurants and eateries to purchase Food and Beverage. The food plus card amount selected by the employee gets deducted from the personal pay and the employee gets tax benefit based on the usage. Amount that can be declared is Rs per month. You can allocate your entire Personal Pay in the BoA. But please note, the sum of all BoA components cannot be greater than your Personal Pay.

13 Understanding Impact on your Gross Salary Please compare your Old Gross Salary and your New Gross Salary per month (as given in the pay slip). If you have increased you Basic or opted for NPS, it will lead to a reduction in your Gross salary. The component that gets reduced due to increase in Basic and opting for NPS is your Personal Pay. Please note that there will be NO change in you CTC due to this exercise. The new salary structure that you define through this exercise will be with effect from 1-Apr-16.

14 Important Guidelines Details presentation on Define salary structure and Tax calculation after Basic salary revision are available on you login page in MyAscent payroll This is a one time exercise for this Financial Year Once you make changes and save your new salary structure details, they will not be reversed The cut off date for defining your salary structure is 20 th May, The link will be closed on this date and salary for May 2016 wef April 2016 will be computed based on the changes extracted from the system. If you have any queries, request you to please contact your Zonal HR representative or drop a mail to the Payroll team. Their e mail id is payroll@bajajallianz.co.in Please note that no requests/ changes will be entertained post the cut off date for this FY.

15 THANK YOU Thank You