REMUNERATION/WAGES COST

 

REMUNERATION/WAGE COST

Remuneration = Wages + Bonus + Payments under Welfare Schemes

followings are generally deducted from the payroll:

Type of deductions	Description
Statutory Deductions
1 . Provident fund	Employee's contribution to the Provident fund is deducted from the salary/ wages of the concerned employee.
2. Employee State Insurance Scheme	Employee's contribution to the ESI is deducted from the salary/ wages.
3. Tax Deduction at Source (TDS)	Employer is obliged to deduct tax at source if it will be paying to the employee net salary exceeding maximum exemption limit, in equal monthly installments to the income tax department.
4. Professional Tax	Professional tax is a state level tax imposed for carrying on business, profession or service.
Other Deductions
1 . Voluntary contribution to Provident fund	If any employee so desires may contribute over and above the contribution payable by the employer.
2. Contribution to any benevolent fund.	An employee may contribute to any benevolent fund voluntarily by put •n a request to the payroll department.
3. Loan deductions	Installments  can taken by the employee.
4. Other advances and dues	like festival advance and unadjusted advanc