Employee Benefits & Rights in India: Indian Private & Government Employees Salary Structure, Every Employee have Rights to avail
India, is such a place where most of the people are depends on big companies, seeking for a job.Most of the employees have little or no knowledge about the Employee Benefits & Rights in India including salary structure even though it is one of the most important things to learn before you join a company. in this article we will cover various components related to the salary structure which will help you to understand as employee of a company what are the rights every employer should provide to their employees.
Employee Basic Salary & Dearness Allowance
Employee Benefits & Rights in India; As per government law the basic salary of an employee should be morethan Rs. 10,000/-. The basic salary is considered as the core of salary structure and plays an important role as various components like Provident Fund, Gratuity, and ESIC are dependent on it. The basic salary includes 40 to 45 percent of total salary package of an employee which is also called CTC package.
The other benefits like provident fund(PF), Employees’ State Insurance (ESI) & Dearness Allowance is given to the employees in order to reduce the burden of inflation. The amount of Dearness allowance is about 5 percent of the basic salary and this allowance also has an effect on PF, ESIC etc. If both the allowances are high in amount then it increases the tax liability of an employee and if the allowances are low then the employee may not be able to reach minimum wage norms set by the respective state government.
If an employee is living in rented accommodations, then this allowance is provided. The amount of House Rent Allowance cannot be more than 50 percent of the basic salary of an employee in metropolitan areas and no more than 40 percent in non-metro areas. According to the location of your workplace, the House Rent Allowance is decided.
This allowance is provided to the employees for their travel within the country. The Leave travel allowance has tax benefits linked with it. An employee can claim tax benefit for the fare expenses. But, there are some terms and conditions associated with it like only fare expenses can be claimed but food and staying expenses are not covered in this allowance.
This allowance includes the tuition fees of employee’s children but the amount is not more than 2,400 rupees a year for an employee. If you want the benefit of this allowance then the employee has to give the information related to the number of children to avail the tax benefit on Education Allowance.
In a company, an employee is also eligible for the Provident Fund. In this fund, both the employer and employee have to contribute the same amount of money. It is mandatory for the company to be the part of the provident fund if the number of employees is more than 20. The employee has to contribute either 12 percent of basic allowance or 12 percent of the dearness allowance.
The employees present in the states of Karnataka, West Bengal, Maharashtra, Andhra Pradesh, Kerala, Goa, Delhi, Punjab, and Haryana & Madhya Pradesh have to contribute in a fund called as Labour Welfare Fund for the benefit of the labour class.
As a employee of an organization should know all the basic facilities & services that the employer should provide.
Want to Know all about
Salary Structure in India
Leave travel allowance
Labour Welfare Fund
Employee Benefits & Rights in India
list of employee benefits
types of employee benefits
top 10 employee benefits
employee benefits package
most important benefits to employees
types of employee benefits in hrm
employee benefits package example
importance of employee benefits
stay update with our latest posts