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Rahul Kumar - CM Assignment - 1

Okay, let's solve this step-by-step: 1) Calculate the LTMA of CPI for 2005: (526 + 527 + 528 + 529 + 530 + 532 + 535 + 540 + 542 + 546 + 548 + 550)/12 = 535.33 2) Calculate the current DA: DA = (LTMA of CPI for 2005 - CPI of base year 1982)/CPI of base year 1982 * 100 = (535.33 - 100)/100 * 100 = 435.33% 3) Last DA increase was 7% Current DA = Last DA + Increase = 435.33 + 7 = 442.33

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91 views12 pages

Rahul Kumar - CM Assignment - 1

Okay, let's solve this step-by-step: 1) Calculate the LTMA of CPI for 2005: (526 + 527 + 528 + 529 + 530 + 532 + 535 + 540 + 542 + 546 + 548 + 550)/12 = 535.33 2) Calculate the current DA: DA = (LTMA of CPI for 2005 - CPI of base year 1982)/CPI of base year 1982 * 100 = (535.33 - 100)/100 * 100 = 435.33% 3) Last DA increase was 7% Current DA = Last DA + Increase = 435.33 + 7 = 442.33

Uploaded by

Rahul Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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In an untoward happening in a factory, two employees got severely injured and later on one succumbing to

injuries while the other employee’s lost four fingers of his right hand in operation. Applying Employees
Compensation Act 2010 and with the help of following supporting information calculate both employees’
compensation (death & disablement).

a. Age of the deceased employee was 20 years and gross salary was Rs.10000/- p.m.
b. Age of the injured employee was 25 years and gross salary was Rs.9000/- p.m.
c. Due to the injury the disability causing loss of earning capacity was ascertained as 50%.
d. Relevant Factors details are as under;

Completed Age in 16 17 18 19 20 21 22 23
yrs.

Relevant Factors 228.54 227.49 226.38 225.22 224 222.71 221.37 219.95

A. Deceased Employee's compensation 50% of wages*Relevant Factors


Gross salary 10000
Age 20 At the age of 20, the deceased employee's cpompendation stands at Rs. 1
Relevant factors 224
Employee's Comp. 112000000

B. Injured Employee's Compensation 60% of wages*Relevant Factor*50%


Gross Salary 9000
Age 25 At the age of 25, the injured employee's compensation stands at Rs.
Relevant Factor 216.91
Employee's Comp. 585657
succumbing to
Employees
h employees’

24 25

218.47 216.91

dation stands at Rs. 1 112000000

on stands at Rs. 585657


Mr. Ravi resigned from XYZ ltd. (a PSU) after serving for 6 years and 8 months wherein at the time of full and final
settlement, HR dept. calculated that his service tenure had a gap of one months of LWP (Leave without Pay). Calculate
Mr. Ravi’s gratuity entitlements from his following salary information who resigned from the post of Sr. Manager - PR.
a. Basic Salary = 50,000/- p.m.
b. DA Salary = 1,32,000/- p.m.
c. HRA = 18,000/- p.m.

1 year continous service 15 days of Basic + DA salary


Minimum years to serve for gratutity = 5 years
No.of gratuity days = 15*6 = 90 (we wouldn’t be considering his gratuity in 7th year as he resigned before the co

Basic salary 50,000


DA Salary 132,000
Mr. Ravi's Basic + DA 182,000

Considerting 4 sundays in a month, we will take rest of remaining days for the calculation of One daY'S Basic + DA =

One day's Basic + DA 7000


Gratuity (Total of 6 years) 630000
of full and final
hout Pay). Calculate
f Sr. Manager - PR.

s he resigned before the completion of 240 days)

aY'S Basic + DA = 26
Calculate PF, ESIC & Bonus of the following employees whose salaries are mentioned in the below table:
Sl. No. Basic+DA Sal. PF* ESIC Bonus Total
1 30000 1800 NA NA 31800
2 21000 1800 840 1749.3 25389.3
3 20000 1800 800 1666 24266
4 18000 1800 720 1499.4 22019.4
5 15000 1800 600 1249.5 18649.5
6 14000 1680 560 1166.2 17406.2
7 18000 1800 720 1499.4 22019.4
8 25000 1800 NA NA 26800
9 24000 1800 NA NA 25800
10 17000 1800 680 1416.1 20896.1
* As per Employer Cap

PF
For PF, the general calcuation is 12% of Basic Salary + DA. But since we have to as per Employer Cap, so in this if

ESIC
ESIC is calculated as 4% of Basic + DA, out of which 0.75 is a part of Employee's deduction and 3.25% is a part of

BONUS
If Basic + DA is below Rs.7000 then bonus will be calculated on the actual amount, if it exceeds 7000, then the b
below table:

per Employer Cap, so in this if the Basic + DA exceeds the amount of 15000, then in that case PF is calculated on the 15000 itself and n

duction and 3.25% is a part of Employer's deduction. No ESIC is there if the Basic + DA exceeds Rs.21000.

if it exceeds 7000, then the bonus will be calculated on 7000 only. If the Basic + DA exceeds 21000, No Bonu is granted.
d on the 15000 itself and not on the actual Basic + DA. That’s for alll the 9 employees The PF is calculated on 15000, but only the emplo

u is granted.
15000, but only the employee having 14000 as a sum of his/her Basic + DA will get his PF on his/her actual Basic + DA.
The market comparison salaries for a Retail Manager are given below. The midpoint of the salaries is half the am
salary and the highest.

Comparison Salary 1 Rs.80,500


Comparison Salary 2 Rs.82,500
Comparison Salary 3 Rs.85,400
Comparison Salary 4 Rs.95,700
Comparison Salary 5 Rs.1,20,300

From the above salary data, calculate Compa Ratio for the post of Retail Manager who is drawing a salary of Rs.1,10,000. F
advantage and disadvantage of the calculated COMPA Ratio to Dept. HR Head. What action should be taken in order to ma
employee who is an HR Manager working with the organization for the last 3 years?

Minimum Salary 80500 Compa Ratio is 109.56, which is mo


Maximum Salary 120300 ADVANTAGE OF COMPA RATIO-
Employee's salary (given) 110000 Setting base pay levels for roles
Salary Mid-point 100400 Salary negotiations
Negotiations in performance reviews and pay
Salary guidelines around seniority, experienc
Compa Ratio 109.56175299 Adjustments for inflation year-over-year.

DISADVANTAGE OF COMPA RATIO-


JOB TITLES VARY FOR DIFFERENT PROFILES.
DIFFICULT TO IDENTIFY.
e salaries is half the amount between the lowest

a salary of Rs.1,10,000. Further, suggest the


d be taken in order to maintain and retain the

109.56, which is more than 100, which indicates it is more than market rate.
MPA RATIO-

ormance reviews and pay raises


und seniority, experience levels, etc.
ation year-over-year.

COMPA RATIO-
R DIFFERENT PROFILES.
All India Consumer Price Index (General) for Industrial Workers (Base 1982 = 100) for Year 2005 from Jan-
Dec. are give below. The last DA increase was 7%. Calculate new DA rate for the year 2006 w.e.f. January
and commensurate increase % in the new DA.
Jan 526
Feb 527 DA = (LTMA of CPI of base year)/(CPI of base year)
Mar 528
Apr 529 545.33
May 530
Jun 532
Jul 535 DA= (LTMA of CPI -CPI of base year )/ CPI base year *100
Aug 540
Sep 542 331.67
Oct 546
Nov 548
Dec 550 DA= (Current DA increase - Last DA increase )

324.67
CPI of base year)

ar )/ CPI base year *100

A increase )

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