Thursday, January 22, 2015

What Is Pay Slip Cost

Rajinder Wali explains what s Pay Slip Cost..!!

I feel there is utter confusion amongst the members about the Pay Slip cost as a result youngsters are not being guided properly about the amount of likely rise in the Salary. Many of the friends in the group wanted to know the concept so I have made an attempt to explain it.

I would like to share with friends that components of pay slip cost include (Basic Pay+ FPP (Fixed Personal Pay)+PQP (Professional Qualification Pay)+ Special Pay, DA (Dearness Allowan...ce)+HRA (House Rent Allowance)+CCA (City Compensatory Allowance).These are the regular payment made to employees and generally comprised of so called Pay Slip of Month.

There are also other costs which are not included on Payslip but paid to employees like cost of Superannuation i.e. Provident Funds, LFC, NPS, Gratuity, Medical reimbursement etc.

The wage load is calculated on the basis of the cost as on 31st Mach of the year of revision. In present case whatever increase being offered is on the of pay slip cost as on 31st March, 2012.
In 9th Settlement pay slip cost was 10.30% out of 17.50% in increase in Establishment cost.

I am sure this information may help friends to understand the concept..!!

Click Here To Read More About Wage Revision And Pay Slip Cost

1 comment:

  1. What will be the DA conversion factor
    it will not be 0.15 may be less around 0.10
    or 0.9
    The Revised DA will not be like 109.8 - 60.15
    around 49.65
    That is 49.65 over the new basic
    but it will be reduced accordingly

    If DA is taken at 0.10 pre slab
    the revised DA will be
    49.65 ÷ 0.15 × 0.10 = 33.1% on the new basic

    If DA is taken at 0.09 per slab
    the revised DA will be
    49.65 ÷ 0.15 × 0.09 = 29.79% on the new basic

    As per 12.5% increase on pay slip concept if the DA is converted for 0.10 the gross may be

    14500+60.15% da merger
    14500+8721.75 = 23221.75

    23221.75×12.5% increase so far = 2902.72
    23221.75+2902.72 = 26124.47

    Now comes the DA part
    if da is converted for 0.10 the revised DA will be
    49.65 ÷ 0.15 × 0.10 = 33.1% on the new basic

    New basic + revised DA
    26124 + 33.1%
    26124 + 8647 = 34771

    Instead of
    14500+109.8%
    14500+15921 = 30421

    An increase of 34771- 30421= 4350
    Around 14.30 increase on gross

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