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MS - 27
Wage and Salary Administration
MS-27/TMA/SEM - II/2016
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KIAN PUBLICATION
Whatsapp- 9580039150
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1. Explain the concept and structure of compensation. Describe the functions and responsibilities of
compensation programme of an organization you are familiar with.
Role and Concept of Compensation
Workers have a right to adequate compensation for their labor. On the other hand, benefits are provided by the
employer, as a ------------------------------------------------------------------------------------------------- organizations health.
Compensation can be in the form of wages or tips ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- determines the value of
variable pay. A balanced mix of both forms of pay results in an efficient and a motivated workforce.
The current competitive conditions in the business world make it ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ personnel
budget under the control and to manage the jobs in the right salary (pay) brackets.
The compensation strategy is not important just for the competitive advantage, but it supports the other HR Processes and
helps them to become highly efficient HR Processes and being on the top in the industry .
The compensation strategy has a strong influence on ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------as they do not feel the
need to find a new job opportunity elsewhere.
Structure of compensationEvery company, business, or organization that pays workers has some form of compensation structure. These documents,
usually produced and maintained by human resource -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and pay variations on the scale often take skill level and experience into account.
A companys compensation structure reveals its pay -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------pay is taken into consideration with each position and pay on the structure increases with the level of experience and
responsibility.
A compensation structure is influenced by a -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------company may make
significantly more than an account specialist with a small start-up company or mom and pop business.
In most cases, a compensation structure is -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------employment with companies that pay more unless other attractive benefits or perks are offered.
The compensation structure may include an employees base pay as well as any incentive and merit pay programs. Base pay
can be derived from a set salary or hourly amount. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Incentive compensation is often used to motivate employees to perform better at work. This type of compensation is
common in sales environments. Employees who successfully sell more make more.
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2. Explain the purpose and application of the payment of wages Act, 1936. Describe the concept of deduction
from wages and limits on the total amount of deduction, can the fine be deducted from wages of an employed
persons? If so, subject to what conditions.
The Payment of Wages Act 1936
Section 2(vi) of The Payment of Wages Act defined "wages" to mean:
(A)l1 remuneration (whether by ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------, express or implied, were fulfilled, be payable to a person
employed in respect of his employment or of work done in such employment, and includes :
Any suns which by --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- provide for the time within which the payment is to be made;
Any sum to which the person employed is entitled under any scheme framed under any law for the time being in
force;
Persons employed (otherwise than in factory) upon any railway by a railway administration, either directly or,
through a subcontractor, by a person fulfilling a contract with a railway administration, and
The Act empowers the State Government to extend the application of the whole or part of the Act to any class of persons
employed in the establishment or class of establishments specified by the Central/ State Government under Section 2(h)(ii).
However, before doing so the State -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to establishment owned by the
Central Government, no such notification shall be issued except with the concurrence of that Government.
i.
ii. Any loss of wages resulting -------------------------------------------------------------------------------------------------------------------------------------------------, upon a person employed, of any of the following penalties :
The withholding of increment or promotion (including the stoppage of increment at an efficiency bar) ;
The reduction ------------------------------------------------------------------------ in a time scale ; or
-------------------------------------------------------------------------------------;
deduction for house-accommodation ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------which may be specified in this behalf by the State Government by notification in the Official Gazette;
deductions for such amenities ----------------------------------------------------------------------------------- officer specified
by it in this behalf may, by general or special order, authorise;
deductions for recovery of -------------------------------------------------------------------------------------- or conveyance
allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages;
deductions for recovery of loans ----------------------------------------------------------------------------------------- with the
rules approved by the State Government, and the interest due in respect thereof;
deductions for ------------------------------------------------------------------------------------------------------------------------------ Government, and the interest due in respect thereof,
deductions of ----------------------------------------------------------------------------------------- employed person ;
deductions required ------------------------------------------------------------------------------------ make such order ;
deductions for subscriptions to, and for ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------58a of the Indian Income-tax Act, or any provident fund approved in this
behalf by the State Government, during the continuance of such approval;
deductions for payment to co-operative societies approved by the State Government or any officer specified by it in
this behalf or to a scheme of insurance maintained by the Indian Post Office;
deductions made with the written -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Office Savings Banks in furtherance of any savings scheme of any such Government;
Deductions made, with the written authorisation of --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the State. Government or any officer specified by it in this behalf, during the continuance of such approval;
Deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for
the membership of any trade union registered under the Trade Unions Act, 1926.
deductions for recovery of losses sustained by a ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------sale of food in catering establishments or in respect of sale of
commodities in grain shops or otherwise;
deductions for recovery of losses --------------------------------------------------------------------------------------------------------------------------------------------------------------------- loss is directly attributable to his neglect or default;
deductions made with the written ------------------------------------------------------------------------------------------------------------------------------------------------------------ may, by notification in the Official Gazette, specify;
3. What do you understand by the concept of wages, explain the concept of basic wage through examples.
Why dearness is allowance an integral part of pay packet, explain how is it administered?
Concept of wagesWages are the most common -------------------------------------------------------------------------------------------------------------------------- income for the majority of active people. Similarly, many pension schemes are based on wage levels and dynamics.
A wage is monetary compensation-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- as a fixed amount for each task completed (a task
wage or piece rate), or at an hourly or daily rate, or based on an easily measured quantity of work done.
Wages are an example of expenses that are involved in running a business.
Payment by wage contrasts with salaried work, in ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------forms (or all monetary forms) of employee compensation.
Statutory ----------------------------------------wage
Bare --------------------------------------------- wage
-------------------------------------------------wage
------------------------------------------ wage
----------------------------------------- wage
-------------------------------------------- wage.
The statutory minimum wage is determined ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the Resolution of the 15th Session of the Indian Labour Conference but has been modified by the Courts. Let us now
discuss each of these in some detailThe ----------------------------------- Wage- The Statutory Minimum Wage, which is prescribed under the Minimum Wages Act,
1948 is higher ---------------------------------------------------------------------------------------------------------------------------------requirements and amenities.(See Crown Aluminium Works v. Their Workmen, AIR 1958 SC 30).
The Bare Subsistence or Minimum Wage- The ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Newspapers Pvt. Ltd. v. Union of India, (1961) 1 L.L.J. 339 (SC).
Living Wage- Justice Higgins of the Australian Commonwealth ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, provision for evil days, etc. as well as regard for the special skill of an artisan if he is one."
Fair Wage- The Committee Fair Wages said that the fair wages lies between a minimum wage and a living wage. The
Committee envisaged that while the lower limit of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the place of the industry in the economy of the country. (Government of India, Report on National Commission
on Labour p. 11).
The Hindustan Times Ltd. v. Their Workmen, (1963) 1 L.L.J. 108, the Supreme Court defined fair wage as something above
the minimum wage, "which may roughly be said to approximate to the need based minimum wage, in the sense of a wage
which is adequate to cover the normal needs of the average employee, regarded as a human being in a civilized society".
In Kamani Metals and Alloys Ltd. v. -------------------------------------------------------------------------------------------------------------------------- the minimum wage which must be paid in any event, and the living wage which is the goal.
Minimum Wage- The Committee on Fair Wages stated that the minimum wage must provide not merely for the subsistence
of life,' but for the preservation of the worker. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------his family, (Government. of India, Report of the Committee on Fair Wages, p. 15 cited in the Report of the National
Commission on Labour).
Need-based Minimum Wage- The fifteenth Indian. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------wage boards, adjudicators, etc.
In calculating the minimum wage, the standard working-class family should be taken to consist of three consumption
-------------------------------------------------------------------------------------------------- should be disregarded.
Minimum food requirements should be calculation the basis of a ---------------------------------------------------------------------------------------------------------------------------------------------- adult of moderate activity.
Clothing requirements -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- for low-income groups; and
Fuel, lighting -------------------------------------------------------------------------------------- minimum wage.
However, the Committee recognised the existence --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the recommendations, it would be incumbent on the authorities concerned to justify the circumstances which
prevented them from adherence to the norms laid down.
Concept of basic wageSection 2(b) defines "Basic Wages" to mean : all emoluments which are earned by an employee while on duty or on leave with
wages in accordance with the terms of the contract of employment and which are paid or payable in cash to him. It, however,
does not include
any dearness allowance (that is to say, all cash payment by whatever ---------------------------------------------------------------------------------------------------------------------------------------------------- bonus, commission or any other similar
allowance payable to the employee in respect of his employment or of work done in such employment;
Section 2(g) defines "Remuneration" mean to: the basic wage or salary and any additional emoluments whatsoever payable,
either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the
contract of employment, express r implied, were fulfilled.
The basic wage provides and stable base to the wage structure. It is the price to be paid to get a given job done. This could be
on monthly, weekly or daily basis. Basic wages is ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of efficiency of workers by providing some measure of education, medical requirements and amenities.
It was after the end of the Second World War that the --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------known as Need Based Minimum Wage. The underlying assumptions behind the basic wage legislation are
that the industry does not have the right to exist unless the minimum needs of workers are met.
The Committee on Fair-Wages (1948) and 15th session of I.L.C. (1954) propounded certain wage concepts such as minimum
wages, fair wages, living wages, and need based minimum wages.
Minimum wages - not merely for bare ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- some measure of education; medical etc.
Fair-wage - while the lower level of fair wage is the minimum wage the upper-limit is the capacity of the industry to pay.
Between these two limits, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ rate (iii) National income (iv) the place of industry in national economy.
Living-wages - It represents and inclinds decency, protection against ill health, requirements of essential social heads and ------------------------------------------------------------------------------------------------- and state will make all efforts to attain it.
Need-based ------------------------------------------------------------------------------------------------- explained above.
The concepts of Nominal/Money wage and Real Wage also require explain in brief.
ExampleThe above observations about basic wage have been corroborated by industrial adjudications, particularly by the Supreme
Court. In Workmen of Orient Paper Mills Ltd v. Orient Paper Mills, -------------------------------------------------------------------------------------------------------------------------------------------------------------------- industry to pay is irrelevant, the industrial
adjudication has to bear in mind the minimum wage paid by the similarly situated industries in the region.
In Hindustan Times Ltd. v. Their Workmen, (1963) ------------------------------------------------------------------------------------------------------------------------------- or minimum wage and observed.
At the bottom of the ladder, there is the basic wage which the employer of any industrial labour must pay in order to be
allowed to continue an industry. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------things which are needed for their health and physical well being, enough to enable him to qualify to discharge his duties as a
citizen.
DEARNESS --------------------------------------------------------- OF PAY PACKET
The words dearness allowance primarily suggests and refer to allowance paid to employees in order to enable them to face the
increasing dearness of essential commodities. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the rise in prices. The assumption behind DA rise is that if the prices go back to the earlier level, the DA can be
reduced or withdrawn.
In other countries, where --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Wages Act, refers to it as cost of Living Allowance.
DA forms a variable component of Pay-Packet, since rate of dearness increases more than once every year, whereas the basic
pay scales are revised after longer spells of time.
The scheme of DA is having usually three parameters - ---------------------------------------------------------------------------------------------------------------------------------------------------- for Industrial Workers (Base 1960 = 100 AICPI).
The allowance may go up with the revision in the index based on average for a selected period to off-set the temporary
fluctuations in the index. Also, a doze of DA is related to certain prescribed increase in the number of the Index points.
There are different patterns of calculating DA, using the above parameters
The Central DA - Applicable to ------------------------------------------------------------------------------------------------------------------ central PSUs. In these pattern incidents of neutralisation goes upto 100% for lower slabs.
The Industrial Pattern - Applicable ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- at the the rate certain rupees (say Rs.3) for per point increase in the Price Index.
DA system in Banks and LIC is yet ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- benefits than IDA pattern.
4. Define incentives. Bring out their advantages and limitations. Explain the various individual and group
incentive plans and their respective merits and demerits.
The term incentive is not peculiar to economics -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------what comes out
clearly is the fact that incentives are truly central to the study of economics.
Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. An incentive scheme is a
plan or programme to motivate individual or group performance. An incentive programme is most frequently built on
monetary rewards (incentive pay or monetary bonus), but may also include a variety of non-monetary rewards or prizes.
The International Labour Organisation (ILO) refers ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ are relatively fixed,
incentives generally vary from individual to individual, and from period to period for the same individual.
Employee incentive system is an increasingly popular way ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------way of compensating workers. They provide employees with an actual stake in the corporation.
----------------------------------------------------- unit Cost of production per --------------------------------------------------------------------------------------------- to decrease in labor cost and overheads per unit.
Reduction of -------------------- turnover Workers is -------------------------------------------------------------------------------------------------------------------------------------------- results in reduction of labor turnover.
Reduction of idle time Since the payment of ------------------------------------------------------------------------------------------------------------------------------------------ to the minimum.
Benefit to consumers Reduction -------------------------------------------------------------- by reducing the selling price.
Limitations:In spite of the above advantages, the incentive plans are not free from disadvantages. The following are some of the important
disadvantages:
Difficulty --------------------------- time Fixation of standard -------------------------------------------------------------------------------------------------------------------------------------------- to get set a higher standard time.
More -------------------------------- required As the workers want ----------------------------------------------------------------------------------------------------------------------------------------------------- wastage of raw materials.
Union opposition Labor unions may ------------------------------------------------------------------------------------------------------------------------------------------- and greed among workers. This may lead to strikes and lock-outs.
Individual and ------------------------------------------------------ merits and demeritsWage incentive plans may be discussed as -------------------------------------------------------------------------------------------------------------- and distinct needs and hence specific tailor-made incentive plans have to be devised to meet their requirements.
Therefore, correct measurement ------------------------------------------------------------------------------------------------------------------------ the incentive index. Various wage incentive schemes are formulated on the basis of these indices.
1. Incentive Plans for Blue Collar Workers: Short-term incentive plans for blue collar ----------------------------------------------------------------------------------------------------------------------- into three categories:
(a) Plans under ------------------------------------------------------------------------------------------- output;
(b) Plans under which the ------------------------------------------------------------------------------------- in output; and
(c) Plans under ------------------------------------------------------------------------------------------------- in output.
Every employer wants his workman to do the maximum work they are capable of doing. On the other hand, there is a feeling
among the workers that an increasing effort ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------for outstanding performance.
All bonus or premium plans relate to two factors: one------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------dissatisfaction and dissension among the workers in a plant.
The payment of bonus to indirect workers, however poses a serious problem because the output of many of them cannot be
accurately measured. For example, it is ------------------------------------------------------------------------------------------------------------------------------------------------ of inspectors, sweepers and packers. Many managements, therefore, prefer to apply a merit
rating system to indirect workers, which rewards these workers for other qualities, in addition to their output.
2. Incentive Plans for White Collar Employees/Salesmen: The salesmen are usually given incentives in the form of sales
commissions. One study reported that --------------------------------------------------------------------------------------------------------------- of most sales work; (ii) tradition in the market; and (iii) the assumption that incentives are needed to motivate salesmen.
There are several incentive plans for sales staff each appropriate for different markets, products, but all plans are basically
variations of three types of plans: straight salary, straight commission, and combination plans.
The straight salary method is not an ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is not related to results. This lack of relationship reduces salesmens performance.
Under the straight commission, the salesmen are paid on the basis of sales ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and the company has less control over them; (iii) salesmens income generally
fluctuates widely.
Under the combination method of salary and commission, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------related to performance; only incentive value of money is being traded off for its security value.
3. Incentives for Management Employees: In many organisations, the managers are paid bonus. There are two types of
bonus plans: one determined by formula ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------tied to overall corporate
results. The size of bonus is much higher for top level executives and lower for the lower level executives.
At the top management level, incentive payments are mostly ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ incentive for good work and represent a form of saving.
In the manufacturing and retailing fields, where year-to-year ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------plan that is poorly conceived or administered can have a negative motivational impact. If a bonus plan
seems appropriate, careful attention should be paid to what kind of plan would be most effective.
On the other hand, systems of payment by results may have disadvantages. There is a tendency for the quality of products to
deteriorate unless steps are taken to ensure maintenance of quality through checking and inspection. This involves added
expenses:
Difficulties may arise over the ------------------------------------------------------------------------------------------------------------------------------------------------- machines or methods are introduced, they may slacken their rate of work.
Another disadvantage is that jealousies ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------may slacken their efforts at times and employers may not take recourse to revision of rates because the earnings are too
high.
Difficulty also arises in determining standard performance. Many organisations follow a safe route to fix the standards - which
is usually the average of past years performance. Past performance may not be the ideal basis for fixing production norms.
Most of the problems of financial incentives ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------should be placed on non-economic factors. Many empirical researchers have shown that monetary incentives alone do
not bring about the desired motivation.
5. Describe the tax planning for employee compensation in any organization you are familiar with. Explain
the tax implications of employee compensation package to the employer and employees.
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Tax Planning --------------------------------- CompensationThe basic purpose of tax ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- should meet the following objectives.
(i)
All constituent parts of employee remuneration are deductible as business expense to the extent possible. If this
requirement is not met, the ------------------------------------------------------------------------------------------------------------------------------------ on the employer and will thereby reduce the profitability of his business.
(ii)
Remuneration received by ---------------------------------------------------------------------------------------------------------------------------------------------------- post tax income is perceived as the real income by the employee and therefore has
significant implications for his morale, motivation and commitment to the organisation.
When employment comes to an end, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------salary or wages. What is important is the nature of benefits given and the name given to a particular payment is not
conclusive.
Apart from complying with the requirement of the above provisions, employer has to ensure that tax is deducted at source.
KIAN PUBLICATION
Whatsapp- 9580039150
ignousolvedassignmentsmba@gmail.com
kianpublication1@gmail.com
ignou4you@gmail.com