Karma Management Global Consulting Solutions has been steadfast and growing in its in-house payroll delivery model for nearly 2 decades , having a huge set of dedicated staff on its rolls, to deliver payroll consistently and efficiently to all its clients.
What can be the reasons and what can be the important things to know about Karma’s payroll optimization at the end of 2021 and beginning of 2022 :
As we all know, payroll is based on salary calculations and if the calculations are perfect, many of the challenges get reduced , leading to development of a satisfied workforce.
How do challenges arise and what is the main cause of it ?
If the inputs done by service providers are not correct, this is the primary cause of a challenge to arise, leading to multiple rows of queries on calculations and this is what creates significant dissatisfaction, re-work, stress and disruptions.
So it is of primary importance to be as careful as possible with salary “inputs” . If the service provider has taken the charge to deliver end-to-end payroll, then it becomes their job to keep track of the ever changing minimum wages which is periodic and which varies from state to state and is announced at different intervals over a period of time. Now this factor will not be told to the service provider by the clients and this becomes the foremost obligation of the payroll service provider to be vigilant and keep track of the ever changing announcements by States on minimum wages. It becomes the responsibility of the service provider to not only keep a track and monitor, but to also implement the same quickly in that month’s payroll with the consent and approval of the clients.
Failure to implement the minimum wages as a part of the inputs, into the salary processing, can have huge implications for the clients. Take the recent example of the 12th November 2021 announcement of Private Security company violating minimum wages act. The J&K Bank ATM guards protested against the slashing down of the minimum wages of these security guards from Rs 7000 to Rs 5500. The company asked the security guards to make an agreement as per their plan and proposal which is completely illegal and unethical. In fact paying Rs 7000 per month by previous company was itself a violation of Minimum Wages Act as security guards are considered to be skilled workers and can’t be paid less than Rs 350 per day as per the notification of J&K Govt issued by Labour & Employment department vide SRO 460 dated 26th October 2017.
It is therefore in this kind of a scenario that Karma Management Global Tech Firm, plays a perfect and conscientious role in providing the right “inputs” to the salary processing of each individual to any type of Organisation. It has a vastly experienced and dedicated resource, well versed in all the nuances of the payroll process and is fully knowledgeable to handle the wholistic automated payroll system with a huge set of advanced features and single window display system for chat bot queries instantly answered in seconds together with self employee service window.
Now with the changes happening on labour codes and the much awaited labour rules, where some States have announced their rules while some States, the working of the rules are in progress, the payroll inputs perhaps will be faced with the new enactment on minimum wages in the future, where the :
· State wages have to be higher than the national floor rates
The Bill says that the federal government will set the national floor rates for wages, as well as minimum wage in certain sectors (such as railways and mining). The state government will fix the minimum wages for their regions, which cannot be lower than the national floor wage set by the federal government. However, the federal government may set different national minimum wages for different parts of the country.
The Bill also specifies that the minimum wages must be revised every five years, and the overtime rate must be set at twice the standard wage rate across the country.
Karma Management Global Tech Firm, a foremost leader in labour laws compliances , has already set in motion, a lot of new practices , to continue and evolve, and to keep in readiness for established businesses that are engaged with them and on their elite list, to monitor the new enactments and to implement them as per the notification dates. So all these global clients of Karma have not to worry about all such changes taking place as Karma is fully seized of all such matters.
Meanwhile, the Minimum Wages in India remained unchanged at 178 INR/Day in 2021 from 178 INR/Day in 2020
Coming back to perfect payroll inputs optimization, is the Employee Time and Attendance.
It is a common practice that if employees are working in some form or the other , then they need to be taken up for salary processing. They need to be compensated on daily wage basis or consolidated monthly basis as the case may be. For this purpose, the Employee Time and Attendance has to be in sync with salary processing and data has to be accurate. Here in karma, our dedicated payroll executives are well versed in how the clocking in and out happens and how the clocking of the “in and out of the shifts “happens. It then becomes important to define the HR policies around intervals, hours of work, shift timings, lunch and other breaks, rest periods, etc. as all these factors lead to maintenance of a proper Employee Time and Attendance which is so crucial for payroll inputs.
The third high risk factor are the statutory deductions. Now it is upto the service providers to carry out perfect statutory deductions and for this purpose, they need not depend on clients approval and clearances. These are lawful deductions and one is duty bound to follow them to the topmost level of adherence for being fully compliant. There is always a tendency on the part of some enterprises to illegally deduct some expenses from the employees salary like uniform expenses, and other unknown deductions which can become an issue as any unrecognized deductions are not allowed as per the minimum wages act.
A well-defined and streamlined payroll process with a suitable payroll software can help completely avoid disruptions, cut costs and increase employee satisfaction.
So on this important note, Karma Management Global Tech Firm is very stead fast on payroll processing and draws it strength from its ability to keep on maturing the process on a periodic basis so that payroll itself becomes the end result of a perfectly timed delivery. At Karma Management , we totally lean and appreciate the strength of maturity which gives rise to two factors : One is we seriously take in the customer complaints as and when received and secondly is the customer review which keeps on happening on a ,monthly basis and some of the pointers of the review are as follows :
1) Understand Customers & Improve Customer Service
2) Credibility and Relationship Building
3) Potentially gain a positive niche in clients estimation and expectations
4) Allow clients to have a voice and create customer loyalty
5) Improve internal rankings in relationship to quality deliverables
6) review to generate more reviews leading to perfection
Thus, the 4 things explained above viz. (a) minimum wages (b) Employee Time and Attendance (c) statutory deductions and (d) being receptive to customer reviews are the distinctive edges that makes Karma’s payroll processing a delight , which is in perfect harmony with the clients mind set of meeting satisfactorily all its expectations in a timely manner.