Dear Fellow HR Practitioners,
Would like to seek your input on the break-up of salary structure followed by your organization, i.e. is it a lumpsum amount considered as salary or do you provide a break-up for Basic, Housing, Food, Transport Allowance.
If a break-up is provided, what is the ratio of the same and at the time of encashment of benefits, e.g. leave, AWS, etc. do you consider the full amount or only the basic salary component.
Would sincerely appreciate your inputs.
1. Salary refers to remuneration, including allowances, paid for work done under a contract of service.
It does not include:
- The value of accommodation, utilities or other amenities.
- Pension or Provident Fund Contribution paid by the Employer.
- Traveling allowance
- Payments for expenses incurred during work
- Gratuity payable on discharge or retirement
- Retrenchment benefits