1Why salary restructuring is too important for corporates?
Salary restructuring helps corporate employees to reduce their tax liabilities and increase their take-home without changing the total salary. More tax-free components with well-designed benefit packages play a vital role in employee recruitment and retention. At the same time, Corporate will keep the operational costs low & turn over high.
2Do you provide a tax-friendly salary structure as per the new wage code 2022?
Yes, Relativity’s salary restructuring is a go-to solution for a legally compliant, tax-friendly salary structure as per the new wage code 2022.
3Does Relativity help to reduce taxes by adding more tax-free salary components?
At Relativity, our experts understand the pay structure & heads, in line with all the acts and suggest necessary changes based on your objectives and help to reduce taxes efficiently.
4How does Relativity help to build a tax-friendly compensation & benefits package for your employees?
Relativity assesses all the options of not just salary but the whole gamut of Comp & Ben and what benefits it can provide to your employees. Following activities done by us to build a tax-friendly package for your employees.
- Detailed analysis of the existing salary structure. Which components could be dropped and which should be retained?
- Detail employees' salaries as per the new wages code industry, employee headcount, future growth, and various rules and regulations of India.
- Through personalized attention and advice, we then derive a salary structure specific for your company, in line with your company’s demographics.
5What are the new rules for salary breakup in India with the new labour codes?
After the new rules come into effect, one of the important rules is that the basic salary cannot be less than fifty per cent of the CTC.
6What are the 67 compensation & benefits to your employees?
Relativity offers 67 pay components to your employees for a tax-friendly compensation structure. Basic, Dearness Allowance, City compensatory Allowance, Special Allowance, Performance Bonus, Incentives of any kind, Commission of any kind, Shift Allowance, Other Allowances, House Rent Allowance, Leave Travel Allowance, Hostel Expenditure Allowance, Children’s Education Allowance, Food Coupons, Gift Card, Uniform Allowance, Transfer Allowance, Mobile / Data-card Reimbursement, Vehicle Operating Expenses for Car Leased Employees (Fuel / Maintenance), etc., For more details contact: email@example.com
7Do new wage codes affect your take-home salary?
Yes, Absolutely. Under the new wage codes,
- The take-home salary of employees may decrease.
- The allowances cannot be lesser than 50% of gross.
- The gratuity and monthly PF are deemed to alter.
8How does Relativity help you to increase your take-home pay by restructuring your salary components?
Relativity will analyse the salary components from your current salary structure and can help employees to reduce tax liability and increase in-hand pay. Here are the few components recommended by Relativity to reduce paying taxes. HRA, LTA, NPS, Bonus, Reimbursements, Salary Loans, ESOPs
9What are the four new labour codes under UPSC?
The four new labour are Code on Wages, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code.
10Should employers restructure their employees' salaries as per the new wages code?
Yes, Employers should restructure their employees’ CTC to align with the new wage code rules once the government enforces the Code on Wages.
11Does the code on wages act applicable to all the employees?
The Code on wages is applicable to all the employees, establishments & employers as defined in the code.
12When is the implementation of the four new labour codes in India?
The Government is working to implement these four new labour codes as soon as possible.
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