I am the100% shareholder, and only employee ( as director ) of company. I have attached salary slip format. Please see if the format is correct, respected sir and madam.
Salary would be variable -- i have kept DA at 0, and plan to vary basic salary month after month -- is that ok ?
Thanks all :)
I have attached salary slip with this msg , again . Thanks :)
| Originally posted by : Sourav | ||
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Yes its ok |  |
Thanks sourav sir. How about changing basic salary every month ? This month i plan to have 50k director salary . Next month, it could be 2 lakhs. Is it allowed to change basic salary every month ? If i have to make salary variable, what should i do ? Thanks sir :)
You may have a fixed component comprising basic pay & other allowances and a variable component like incentive etc.
It's unusual to have a variable basic component I think (not sure whether it is legally acceptable).
| Originally posted by : CA Altamush Zafar | ||
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Don't make salary variable. Keep it constant. Otherwise it won't classify as salary.Either mention it in the employment agreement but since it is not known now it will be difficult. Keep it constant. | |
I guess i will keep basic salary fixed, and give larger incentive to the director ( myself ) . I am only shareholder of the OPC. Can incentive be larger than basic salary ? Thanks sir and madam :)
This month, basic salary might be 10,000 and incentive 40,000. Next month, basic salary 10,000 (keeping it constant ) and incentive might be 3,40,000 .
Make sure to cover it under terms of employment
| Originally posted by : CA Altamush Zafar | ||
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Make sure to cover it under terms of employment | |
Thanks Altamush sir :) You have helped me so much past few days. Can the incentive be larger than basic salary every month ? What should i call the incentive ? My OPC deals with websites. It sells online advertising on my websites.
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