Part of your salary comes in cash? Employers likely to change pay structure

An article in Hindustan Times talks about how the demonetization of Rs.500 and Rs.1000/- will impact employees; along with inputs from Rituparna Chakraborty.
She says “The move would cause inconvenience to some employers immediately. However, soon, we shall see recalibration of transactions which will become forcibly legit and would be in compliance with the law of the land.”

Do you get part of your salary or reimbursements in cash? Then your employer may have to re-think the remuneration rollout.

The government on Wednesday suspended road toll across the country for two days

In one stroke, Prime Minister Narendra Modi turned the tide on black money as cash remunerations which feeds informality in the job market is set to end.

Rituparna Chakraborty, co-founder at staffing firm, Teamlease Services, said: “The move would cause inconvenience to some employers immediately. “However, soon, we shall see recalibration of transactions which will become forcibly legit and would be in compliance with the law of the land.”

Top sectors where salaries or part of salaries are paid in cash are real-estate and infrastructure.
However, headhunters expect that a massive shift will be witnessed as the undeclared economy will slowly move into the organised sector.

Also, with lesser cash transactions, more employees will now fall under the ambit of other necessary benefits such as provident fund.

Moorthy K Uppaluri, managing director, Randstad India, a headhunting firm, said: “This reform will benefit everyone as more employees can avail benefits provided in the formal job sector such as provident fund, medical claim, gratuity and additional benefits.”.

Industry echoed similar benefits. Ronesh Puri, managing director at Executive Access, an executive search firm, said, “The initiative will now force the companies to re-consider the salary structure.

Most professional organisation in any case doesn’t pay any component in cash and hence should not affect them at all.”

This article was published in Hindustan Times

Author

Rituparna Chakraborty

Co-Founder & EVP
TeamLease Services Ltd

Latest Blogs

Staffing Process: Definition, Key Steps, and Its Importance

Having the right talent in the right roles is crucial for business success. The staffing process plays a vital role in ensuring that organisations attract,...

Read More

What are the benefits of HR outsourcing services?

As the world of work evolves at lightning speed, one thing has become clear: agility and efficiency are no longer just nice-to-haves; they're essential for...

Read More

The Hidden Costs of Employee Attrition and How to Address Them

Every fiscal year, as businesses grow and evolve, employees naturally seek opportunities for advancement, whether through increased responsibilities, new titles, or career progression. How organisations...

Read More

No Women Left Behind: Why Female Workforce Participation in India Must Rise

The biggest challenges holding women back The report talks about the 19 key persistent challenges that hold women back. Here are the top 10: Socio-Cultural...

Read More

5 Benefits of Working with a Contingent Staffing Partner

Today's fast-paced job market demands flexibility, productivity, and the appropriate skill sets at the proper time for organisations. Temp staffing partners fill this gap by...

Read More
Business Enquiry