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HR Forum topics Started by Debora Debora M

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1. Involve employees in your business planning process
2. Create a knowledge sharing system
3. Encourage knowledge sharing in a creative way
4. Show them the money
5. Encourage and provide learning opportunities
6. Have a hack night
7. Create excitement about upcoming opportunities
8. Let them create their own on-boarding experience
9. Make on-boarding fun
10. Create your own internal magazine







Understand from below how do we exactly calculate the In-hand or Take home salary. Please note that our salary calculator is calculating this for FY 2019-20 (Current Financial Year). For previous years the values would change.

Step 1. Start with calculating the Gross Salary:
Gross salary is not your basic salary nor your CTC. It is obtained by subtracting the Employer's contribution to Provident Fund (EPF) and Gratuity from Cost to Company(CTC).

Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity.

Gratuity calculation:
Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service
We can assume dearness allowance to be zero as it is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU)and pensioners in Pakistan, Bangladesh and India. Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people.

The gratuity that is subtracted every year is = 15/26 x Basic Salary (Monthly) X 1

Step 2. Then calculate the Taxable Income: Taxable income is obtained by subtracting Tax free Allowance, House Rent Allowance(HRA), Leave Travel Allowance(LTA) Professional Tax, Medical Insurance, Tax Saving Investments .

Taxable Income = Gross Salary - Employee's PF Contribution(PF)/PPF investment - Tax free Allowance - HRA - LTA - Medical Insurance - Tax. Saving Investments - Other Deductions.

HRA that can be exempted is calculated as the minimum of three values:
• The amount received as the HRA from the employer.
• Actual rent paid minus 10% of the basic salary.
• 50% of the basic salary if staying in a metro city and 40% in a non-metro city

Step 3. Calculate Income Tax: Calculate Income tax by applying the below Income Tax Slabs and rates. This is the new income slab proposed by Arun Jaitley in Budget 2018.
Step 4. Now, calculate the Take Home Salary; Use the below formula for the same. Professional tax varies state to state. It is not very significant. And hence we approximate it to 200 per month. The maximum Professional tax possible in a year is 2500.

Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax.

How is the Take Home Salary calculated?
Understand from below how do we exactly calculate the In-hand or Take home salary. Please note that our salary calculator is calculating this for FY 2019-20 (Current Financial Year). For previous years the values would change.

Step 1. Start with calculating the Gross Salary:
Gross salary is not your basic salary nor your CTC. It is obtained by subtracting the Employer's contribution to Provident Fund (EPF) and Gratuity from Cost to Company(CTC).

Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity.

Gratuity calculation:
Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service
We can assume dearness allowance to be zero as it is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU)and pensioners in Pakistan, Bangladesh and India. Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people.

The gratuity that is subtracted every year is = 15/26 x Basic Salary (Monthly) X 1

Step 2. Then calculate the Taxable Income: Taxable income is obtained by subtracting Tax free Allowance, House Rent Allowance(HRA), Leave Travel Allowance(LTA) Professional Tax, Medical Insurance, Tax Saving Investments .

Taxable Income = Gross Salary - Employee's PF Contribution(PF)/PPF investment - Tax free Allowance - HRA - LTA - Medical Insurance - Tax. Saving Investments - Other Deductions.

HRA that can be exempted is calculated as the minimum of three values:
• The amount received as the HRA from the employer.
• Actual rent paid minus 10% of the basic salary.
• 50% of the basic salary if staying in a metro city and 40% in a non-metro city

Step 3. Calculate Income Tax: Calculate Income tax by applying the below Income Tax Slabs and rates. This is the new income slab proposed by Arun Jaitley in Budget 2018.
Step 4. Now, calculate the Take Home Salary; Use the below formula for the same. Professional tax varies state to state. It is not very significant. And hence we approximate it to 200 per month. The maximum Professional tax possible in a year is 2500.

Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax.

Your company’s attrition rate is the rate at which employees voluntarily leave your firm. The attrition rate is also referred to as the employee turnover rate or the “churn” rate. If your company has a high attrition rate, it may cost you a significant amount of money to continually replace employees. Furthermore, customers may perceive a drop in the value of your product or service due to a diminished work force or lack of morale or motivation in remaining employees. This damage to your brand may further impact your bottom line.
1. Monthly attrition rate= {No. of separations for the month/(Opening headcount for the month + Closing headcount for the month)/2}*12*100.
2. Attrition rate has to be calculated only for the year or has to be annualized; The formula is = (No. of employees Left during the year)/((Opening Balance)+(addition during the year) ) * 100
Gratuity refers to an amount of money which an employer pays to his employee in return for services offered by him to the company. However, only those employees who have been employed in the company for five years or more than five years are given gratuity. You may perceive gratuity like gratitude expressed by the company towards their employees for their services. It is governed by the Payment of Gratuity Act 1972.
Gratuity Calculation:
The amount of gratuity can be calculated using the following formula
Gratuity = n*b*15/26
Where n = tenure of service completed in the company
b = last drawn basic salary + dearness allowance
Imagine that you worked with XYZ company for a period of 15 years. Your last drawn basic salary along with dearness allowance was Rs 30000. Hence,
The amount of gratuity = 15*30000*15/26 = Rs 2,59,615
Two points need to be noted here:
As per the Gratuity Act, the amount of gratuity cannot be more than Rs 10 lakh. Any excesses would be treated as ex-gratia
If the last few months in the last year of employment are more than 6 months, then it will be rounded to next number. Suppose your tenure of service is 16 years 7 months, then you receive gratuity for 17 years. Otherwise for 16 years if it happens to be 16 years 4 months

Conflict in the workplace could be the result of
• unfair treatment
• Poor Management
• unclear job roles
• inadequate training
• poor communication
• poor work environment
• lack of equal opportunities
• bullying and harassment
• significant changes to products, organizational charts, appraisals or pay systems

Major causes of workplace conflict
• Unrealistic needs and expectations
• Personality clashes
• Business values
• Unresolved workplace issues
• Increase in workload

Establish the root cause of workplace conflict
It is important to understand the root cause of an individual's or group's unhappiness. For example, a person in a team may seem to be struggling with an unmanageable workload, but they may be resentful of another employee who appears to have less work to do. It may also be a result of organisational changes, restructuring, or promotions given to other staff.
To help you manage workplace conflict, look at the previous relationship between the employee and their manager, and their peers for signs of past conflict and feelings which may influence them.
Prevent workplace conflict
You can put policies and procedures in place to help prevent and manage workplace conflict.



Replied to "online esic" in Jaipur!!
19-06-2019.
The ESI Scheme aims to provide hassle free services to both employers and employees through its information portal and services portal. As part of this effort, all compliance and payments are covered through internet. Employers can remit monthly contributions through portal. Presently, the online payment is enabled for SBI account holders having net banking facility.
Two important aspects for making online payment:
1. SBI internet banking user id and Password
2. ESIC user id and password (this can be generated online through ESIC service portal)
3. Now Login with ESIC user Id and Password which is provided during Registration
4. After successful login the above page as shown in screen shot is displayed with hyperlinks under each modules which again redirects to specific sections.
Monthly contribution filing
1.User can file the monthly contribution via “Online Monthly contribution Screen”.
2.On submission “preview” page will be displayed
3.To submit the monthly contribution details to ESIC click “Submit” button (refer screen shot)
4.The user can manually type the contribution against each employee or can upload an excel file as an attachment for bulk upload. This is quite user-friendly for bulk data
5.After submission user can make the online payment via SBI net banking by clicking on Pay online.
6.Click on “ok” to proceed further with the online payment.
7.For future reference please note down the Challan number. Click on continue to proceed for the payment this will redirect to SBI online payment page.
As soon as you proceed for payment, it will direct the user to the banking site where online payment can be done through net banking. The user need to provide net banking credentials and then will be able to pay the amount.
To target passive job seekers, HR professionals should take the following steps:

Identify and strengthen the organization's employment brand.
Assess current and projected staffing needs.
Source passive job seekers.
Engage passive job seekers.
Make the application process easy and tailored to passive job seekers.
In the corporate departments, the number of women employees is going up. This is a significant scenario that reveals the improved status of women in the 21st century. It signifies the actual meaning of ‘women empowerment’. We can observe their existence in every department be it sales, finance or marketing. However, HR (Human Resource) is one function in which women dominate. According to a research, women hold over 60% of the HR jobs across various industry segments. It means they are ahead of men in the HR field.
1. People Management Skills
2. Comprehending Skills
3. Multitasking Skills
The reason is – Visibility. They believe HR profession would provide them more visibility than other sectors such as marketing, finance etc. The reason why they feel HR as the right industry as far as visibility is concerned – the role they play in attracting and retaining people, communicating with them and creating policies. These activities keep them in front of people all the time. Also, women feel HR is a more meaningful profession as decisions here impacts lives of many people.
In large organizations, mid-level unit leaders regularly vacate their positions for a variety of reasons, including promotions, transfers, quits, and terminations. Certainly there are reasons to expect that these departures have residual effects – both positive and negative – on the units involved.

The immediate effect of a leader exit on core member voluntary turnover rates depends on the exiting leader’s performance: turnover rates will increase in the month after a high performer exits and decrease when a low performer leaves. This hypothesis was strongly supported. Across the company there was a strong positive relationship between the performance ratings of departing leaders and the voluntary turnover rates of core (as well as other) employees. In general, when high performing unit leaders departed, some of the remaining employees in their units began leaving almost immediately, but when low performing unit leaders exited there was a downward spike in voluntary turnover rates among the remaining employees. The firm’s performance rating assessed both operational concerns (meeting sales targets and the like) and people concerns (e.g., team morale). A high rating indicates the ability to both manage the business effectively and establish positive relationships with and among subordinates. Thus, it is to be expected that in units where high performing leaders leave, employees are likely to begin harboring concerns about deteriorating working conditions and worsening interpersonal relationships.
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Debora Debora M

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Debora
Content Writer
Sumopayroll
(Consulting)
Visakhapatnam, AP

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