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: https://goo.gl/SNw1Af

Author

Rituparna Chakraborty

Co-Founder & EVP
TeamLease Services Ltd

Latest Blogs

D2C business emerging growth opportunity in omnichannel strategy

D2C comes in 2 flavours: Existing manufacturers who diversify their target audience through D2C as part of their omnichannel strategy The second being true D2C...

Read More

Employers’ Intent To Hire in the Manufacturing Sector for Q3 Surges – 57% Keen to Hire

Intent to hire trend by manufacturing sectors Despite short-term setbacks due to the pandemic, the manufacturing sector has had many positive and robust outcomes. In...

Read More

National Logistics Policy of India: Shaping Logistics of tomorrow

Why was the National Logistics Policy Launched? What are the challenges faced by the businesses? One could reasonably speculate that India's logistics have advanced greatly...

Read More

Revamping Business with Workforce Formalization

Outcomes  As per the report on Workforce Formalisation, nearly half, 43% of all employers treat formalisation as a priority, and employers across sectors are split...

Read More

What is ONDC in India & how is it going to transform the job market

How will ONDC work and how will it ensure a democratized and decentralized network? Any ONDC-compatible app can be used by buyers to contact merchants...

Read More