Part of your salary comes in cash? Employers likely to change pay structure
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.”--
HTD Model for Your Top-Notch in the Grand Prix
How can the HTD model help you? The objective of this HTD model for clients is to result in benefiting through cost-cutting on recruitment,...Read More
Drones will Reshape Mid-Mile Deliveries
What would it mean for delivery partners in the e-commerce industry? Despite the fact that drone delivery is still in its infancy, it is...Read More
The Flying Carpet- Leading you to a distribution channel revolution
A)) In these, Ghost Employee Elimination is associated with when companies find it tough to keep track of real versus ghost employees as they would...Read More
Automation is the key to the Future of People Management
Automation Tools to Improve HR: Application Tracking System (ATS): A Software that streamlines the entire recruiting process with the help of technology and automation to...Read More
The Bright Side of Dark Stores
Key takeaways from the dark-store growth story 1- Customers are loyal to the value they receive, not to the brand. 2- Business efficiency is accomplished...Read More