How Can You Implement Payroll Cuts Using Attendance Software in Dammam Khobar Jeddah Saudi Arabia

3 years ago

PeopleQlik #1 Attendance Software in Saudi Arabia Most companies are pursuing pay cuts. If you are also considering this, this article will help you to make an informed decision about the execution method that works best for your organization. There are at least three ways to implement pay cuts, each with its own pros and cons. The process of getting paid is complicated because you have to set a lot of rules and regulations when you pay your employees. You need to keep these concerns in mind when it comes to pay cuts.

PeopleQlik #1 Attendance Software in Saudi Arabia

How Can You Implement Payroll Cuts Using Attendance Software in Dammam Khobar Jeddah Saudi Arabia

Some of these concerns are:

There is a government order that has decided that salaries should not be reduced and employees should not be fired. Calculate PF, GREAT and ESI pay components using Attendance Software in Saudi Arabia. Doing so not only affects the employee’s retirement funds, but also guarantees a government audit due to a sudden reduction in retirement funds. It is very important to obey the law. Make sure employer participation in PF or ESI does not exceed the mandate. This is an additional burden on the employer.

If the pay cut method leads to a reduction in income tax, it will give employees a higher home pay. If the pay cut leads to additional tax cuts, employees may not like the result.

Salary details should be easy to communicate with employees. Employees need to make it clear how much is being deducted. Otherwise, you may be stuck in employee descriptions.

The cut should not be difficult for Attendance Software in Saudi Arabia to implement.

In the case of salary reinstatement, it should be easier for employees to pay the arrears in full or in installments.

Before proceeding, you’ll first need to address the # 1 concern, which is a Attendance Software in Saudi Arabia. It is advisable to consult your legal team or labor consultant before discussing any action. 25,000 say concern # 2 can be addressed by not lowering salaries for these employees below a certain threshold.

Assuming that the first 2 concerns have been addressed, let’s examine the three methods of the pay reduction process and how they are used to deal with different concerns in each way.

How to reduce cost

There is an easy way to implement Attendance System in Saudi Arabia. You reduce the overall CTC by adjusting the different components. Start with the “Special Allowance” component and avoid changing the legal / component component to avoid affecting the legal component.

There are many companies that do not follow the CTC-based compensation plan. In this case, this method cannot be used. For example, let employee X’s monthly TC be 100,000 CTC. The company has decided to reduce the salary by 20%, the CTC package will be restructured to reduce the total revenue by 20%. You can see in the peace slips below that almost every component changes in the process.

Method of deductible components

In this procedure, you add a new deductible element called covid deduction. Understanding the pay cut is straightforward for an employee but it has many flaws. For example, let employee X’s monthly TC be 100,000. This company has decided to reduce the salary by 20%, we reduce the monthly by 20%. Nothing has changed in terms of income. The incidence of taxes is high. Home pay is the least of these three methods.

The method of negative income

Attendance Software in Saudi Arabia enables you to calculate income. In this approach, we use the negative income component to enforce pay cuts, called “quad cuts”. This method is designed to address all possible concerns. Although there seems to be only one component to do this, the implementation is a bit involved and requires some expert help.

Our negative income is 20,000 which added to the CTC package. Except for the newly added component and the income tax component, nothing else has changed.

The salary at home is more than a deduction. The only problem with this method is that the concept of negative income is slightly distorted. If you are a Attendance Software in Saudi Arabia user, there is a small trick that can be seen in the picture below that can improve the pace slip reading. In addition, the issue of employee communication is taken care of.

Request For Demo

Now keep in mind, not every business is suitable for attendance Solutions In Saudi Arabia. If you are not sure whether you should use software, do in-house processing, or play other features in some other way? Or What can our best HR Payroll System do for your company? To see how PeopleQlik’s learing management system can smooth your payroll processing, request a demonstration now on www.peopleqlik.com .

Conclusion

PeopleQlik’s Attendance Software is an important tool for achieving business results by managers and employees and is as user-friendly, straightforward and easy to use as possible. PeopleQlik’s Attendance Software in Saudi Arabia is essential for ensuring all-round growth of your company over the period. You have to customize your Attendance Software now. Because as your enterprise grows and business expands beyond borders, you need it. Therefore, it’s better to integrate our Cloud-based system in your business.