INCENTIVES AND RETIREMENT PLANS

The

term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis. It is the mimimum fixed salary.

 It

is a part of persons salary. It is calculated as a percentage of the basic salary. It is given on account of meeting high prices these days. Sometimes special dearness allowance is also given. This allowance is fully taxable. Da is equal to 100% of basic salary.

 Sometimes

DA is given under the terms of employment and sometimes without it. Dearness allowance is given as dearness pay which means it is being given under the terms of employment. When given under terms of employment it is included in the salary for purposes of determining the exemption limits of HRA,RPF,RFA,gratuity. It is also taken into account for the purposes of retirement benefits.

 Compensation

is a concept that is sometimes used to encompass the entire range of wages and benefits, both current and deferred, that employees receive from their employment. Total compensation includes all types of employee compensation combined:

wages and salary, non-wage cash payments (such as bonuses), and benefits.

Salary/Wage Advance salary Dearness pay Bonus Fees Commission Allowances Perquisites Profits in lieu of or addition to salary or wages Amount recd in respect of encashment of earned leave during service.

 Contribution

of employer in RPF (excess of

12% taxable) Interest on RPF(excess of 9.5%) On retirement of employee-add:

URPF Gratuity Encashment of earned leave If retrenched- retrenchment compensation If voluntary retirement-vr compensation Pension