Reading Time: 3 minutes

Are you waiting for a salary hike and trying to figure out how much you will earn post-hike? It is something you need. You will be able to determine the financial impact of an appraisal. Or transferring jobs to another one. You can track your salary negotiations, compare job offers. Or simply measure your maturity when using a salary hike calculator. An effective and fast way to do this surreptitious work. They also help you with performance tracking with much ease. For aligning compensation with the contributions.

This blog includes everything related to salary hike calculators, including usage. Benefits and how advanced HR tools like Savvy HRMS further simplify it.

What is a Salary Hike Calculator?

The salary hike calculator is a digital tool. It calculates the amount of money you’ll be paid in your new salary. That basis itself on your current salary and the new salary offered.

It just takes away the guesswork and gives the sort of transparency that is needed. In salary negotiation and HR planning.

Why Use a Salary Hike Calculator?

1. Enlightenment on Growth

You get a clear picture of what your monetary value looks like in professional rates.

2. Strong Support

Negotiation Indications pertaining to your appraisals. Or during interviews, about the exact hike percentage. It will help to really strengthen your case.

3. Comparison of Jobs Made Easy

This will simply allow you to compare your current package with the new job offers. And make some final decisions.

4. Helps Employers Too

The HR professional uses these tools to maintain a fair & transparent salary structure. Within the organization.

Working Simplified with a salary hike calculator

You can calculate salary hikes in just two ways:

1. When You Know the Percentage

If you earn a salary of ₹40,000 and get a hike of 15%:

Hike Amount = 15% of ₹40,000 = ₹6,000

New Salary = ₹46,000 

1. When You Know the New Salary

Current Salary: ₹40,000

New Salary: ₹48,000

Hike Percentage = {(48,000 – 40,000) / 40,000} × 100 = 20%

Salary Management in Savvy HRMS

Its Payroll and Salary Management module is well-regarded. For its embedded salary hike calculators.

With Savvy HRMS, the following dual advantages accrue to employees and HR managers:

• Automated hike calculation

• Customization of the salary structure

• Appraisal management

• Issuance of payslips and tax calculations

• Real-time payroll analytics

Advantages of Savvy HRMS Salary Tools

• Facilitates uniformity and equity in salary structures

• Minimization of miscalculations in manual hike calculation
• Promotes transparency and clarity to boost employee satisfaction

Conclusion

A salary hike calculator is, in fact, a necessity for modern professionals & HRs. This is made all the more seamless through platforms like Savvy HRMS. Giving you access to accurate hike calculations coupled with robust payroll management features. And real-time analytics on salary.

Understanding salary hikes for employees charting their next move. HR managers wrapping their minds around appraisal periods have never been this easy.

FAQs

Q1. Is a salary increase calculator free of charge? 

Yes, most of the salary increase calculators available for use online are free to use.

Q2. Does HR software like Savvy HRMS support automatic salary increase calculations? 

Yes, Savvy HRMS provides a salary increase calculator within its payroll module. That works in an automated fashion.

Q3. How do we determine the hike percentage? 

The formula is: Hike (%) = {(New Salary – Current Salary) / Current Salary} × 100

Q4. Are hike calculators meant only for employees? 

No. These calculators serve the purpose of providing a reference for both employees & HR. 

Q5. Does Savvy HRMS also help in the making of payslips? 

Yes, Savvy HRMS has the option of generating payslips, tax management & full payroll processing.

Reading Time: 3 minutes

Aligning HR strategies to organisational goals is a necessity. In today’s highly competitive environment. This scorecard is the most effective instrument for the hr leaders. To show how direct the contribution of hr practices is. To achieve success for the organisation.

The HR Scorecard tracks some of the most critical HR metrics driving performance. Linking the metrics to business outcomes. It can thus assist HR professionals in advancing how they report work impacts. Beyond the traditional role-tracking approach.

What exactly is an HR Scorecard?

Aligning the strategy to the business objectives under which it operates. Unlike the standard HR measuring. The HR Scorecard presents a perspective on how HR activities would link. To the organization’s overall success.

It connects HR activities to measurable results. That ensures HR does not merely support business goals. But is measured for actively achieving them.

Key Components of the HR Scorecard

In order to appreciate the application of an HR Scorecard.

1. HR Deliverables Outcomes Required of HR 

It has talent acquisition, retention, and enhancement of leadership.

2. High-Performance Work Systems (HPWS)

HPWS includes training, performance management, and reward systems. And thus optimizes employee performance and builds a good-quality workforce.

Strategic Alignment

This means bringing HR practices to the goals of the business as a whole. It ensures that HR engages in actions that contribute to long-term success. 

HR Efficiency Metrics

Cost-per-hire, training ROI, and employee turnover rates. These are a few metrics that define how efficient an HR department is. Analysis of such metrics flags businesses with areas for improvement.

Importance of the HR Scorecard

Bridges HR and Business Objectives

It would ensure that HR strategies are cohesively embedded. Within the business’s strategic scope.

Measures the worth of HR

This would also demonstrate the measurable contributions made by HR. To organisational success and enable the HR leader to sell their Department.

Data-driven insights

The scorecard provides numbers and metrics leading the way. To real and meaningful insights regarding HR practice and performance.

It helps organizations to narrow down their attention. On those areas that accord higher concern. As well as set up priorities for their HR strategies. Thereby initiating action exactly where improvement is desired.

How to Create a Proper HR Scorecard

Good HR Scorecards are built up by following the steps outlined below:

• Define the strategic goals of the organization

Know the larger business objectives, and then develop HR strategies for alignment.

• Clarify the HR outputs

Find out the HR results required to sustain those business goals.

• Design performance Processes

Design the programs, policies, and processes that lead to the desired outcomes.

• Measure Progress

Continuously take efficiency metrics; regularly take performance indicators.

• Review and Adjustment

Review Results and modify strategies considering insights.

Real-World Application

Take an example of a firm trying to decrease employee turnover. For instance, improving the onboarding process or expanding employee development programs. Based on results tracked, they can gauge the effect of these interventions. On turnover rates. Assisting the company in achieving its ultimate goal of attrition reduction.

Conclusion

The HR Scorecard connects the right-hand activity of the HR department. With organizational objectives as a means of arranging the value. What HR brings to the business. When operationalized effectively, the HR Scorecard enables companies to direct HR strategies. Of business success. Future business environments will demand careful sifting of HR data and insights. Through this transition.

FAQs

Q1. What is the importance of the HR Scorecard?

It gauges business achievement, bearing proof that HR has strategic value.

Q2. What is the HR Scorecard, by contrast I conventional HR metrics? 

Conventional HR metrics have been more focused on operations. 

Q3. Are HR Scorecards applicable to small businesses?

Absolutely! Small businesses can begin utilizing the HR Scorecard for tracking HR outcomes. That relates to the business strategy.

Q4. Who should be involved in developing the HR Scorecard? 

A collaborative effort involving HR leaders, managers, and business executives is recommended in Hr management Software. 

Reading Time: 3 minutes

In a fast-paced world, employees demand timely and accurate payment for their services. However, there are times for salary adjustments or delays. This is where salary arrears come into play.

But what are salary arrears? It is time we get this important payroll term on record.

What Are Salary Arrears?

Arrears of salary are due to an increase in the late payment period for a full or revised salary. It is paid later due to the change in pay or due to an error in its processing.

Any change of pay or benefit applied retroactively by the employer to an employee. Would entail a back payment of arrears for unpaid amounts for the preceding months.

Example:

If you have been promoted from a salary of ₹30,000 to a higher salary of ₹35,000 in April. The promotion is effective from January. You will also have to receive from your company an amount of ₹15,000 as arrears. For the months of January to March, in addition to the salary for April, that is, ₹5,000 x 3 months’ arrears, ₹15,000.

Common Reasons for Salary Arrears

Some of the reasons that could give rise to this are:

• Salary revision with retrospective effect

• Payroll errors or delayed processing

• Late joining formalities or documentation

• Missed bonus, overtime, or allowance calculations

How Are Arrears Calculated?

The calculation of arrears is quite simple. It involves:

• See what amount should have been paid.

• Subtracting from it the amount actually disbursed.

That is:

Old Salary: ₹40,000

 New Salary: ₹45,000

 With effect from January

 As revised in April

Arrears = ₹5,000 x 3 months

Arrears = ₹21,000

Hence, the above amount will be added to your April salary.

Do Salary Arrears Have an Effect on Taxable Income?

Yes, they are taxable. Since they are added to the current year’s income, it may even increase the taxable income to an extent. Such burdens arose due to the lump-sum payment of arrears. You may find assistance from your employer or a tax advisor in filing Form 10E to claim this benefit.

Look for These in Salary Arrears Payslip

When it’s credited. They usually reflect as a different component on your payslip for that month. You should check for:

• Arrears breakdown

• Covered period

• Calculations checked
• Being aware of this helps with financial planning. Making the entire process transparent.

Advantages of Receiving Arrears

• Fair compensation for the work done.

• Set aside delays in allowances or bonus adjustments.

• And it shows the company’s effort at rectifying payroll anomalies.

Most of the time, people feel that arrears are just delayed payments. 

Understanding Arrears Salary – A Real-Life Example

Probably the company revises its salary structure mid-year. The employees, from this month onward, are paid revised salaries. For the previous months, they are given the difference as arrears. 

Conclusion

Salary arrears may seem complicated. Simply put, it’s a company’s way of ensuring you are paid fairly for what you should have done in the past. This understanding provides you with the ability to track your salary arrears. So always check your payslip and reach out to the HR team if anything is unclear.

FAQ

Q1: Salary arrears in simple words?

It simply means those amounts that have been paid for prior months. Either as compensation for underpayment or for delay in implementing the new salary.

Q2: Are these bonuses?

No, these are not bonuses; they are dues from previous months, unlike bonuses, which are rewards.

Q3: Are these taxable?

Yes, that’s true. They form part of your total income. 

Q4: How can I check if I received arrears?

You can check your payslip; arrears are usually listed as a separate line item.

Q5: Can small companies pay salary arrears?

Absolutely. Any company, regardless of size, can initiate the processing of arrears in payroll. 

Reading Time: 2 minutes

Creating a safe and inclusive workplace is no longer a choice. It has become a necessity. The POSH Act (Prevention of Sexual Harassment Act) aims to address this very issue. And it exists in India, so that every employee, no matter what gender, can work freely. From harassment, fear, or discrimination. The human resource management software safeguards this policy in each organization

What is the POSH Act?

The Sexual Harassment of Women at the Workplace. Prevention, Prohibition, and Redressal Act, 2013. This historic legislation was one of the first milestones for India. Thus, providing them protection and dignity.

 

Vishaka Guidelines are the guide under which this act falls in. Issued by the Supreme Court in 1997 and became a full-fledged law in the year 2013.

Objectives of the POSH Act

The POSH Act was designed to eradicate sexual exploitation with a goal of having in place:

• Sufficient and safe working environment
• Process of complaint, preferably reporting, and redressal
• Creating awareness among the general public with regard to workplace conduct.

What Qualifies as Sexual Harassment? 

• Unwanted physical contact or advances
• A demand or request for sexual favours
• Sexually colored remarks
• Showing pornography

These actions create actual or perceived intimidation, a hostile work environment. Or an offensive environment within the workplace.

Scope of the POSH Act

The POSH Act covers the following population: 

Any woman working for an organization. Or working for various organizations. Namely, contractors, interns, daily-wagers, part-timers, and so on. 

All workplaces- private offices, government, NGOs, schools, colleges, hospitals, etc. 

Both the organized sector and the unorganized sector. 

It should be noted that though the Act is specifically for women. Many organizations apply similar policies for the benefit of all genders. Voluntarily towards an inclusive and equal society. 

Internal Committee (IC)-The Heart of Redressal

As mandated under the law. 

• Senior woman employee
• Two committed employees, female or jurists.
• There would be one external from an NGO. Or an association on women’s rights.

The IC hears complaints, looks into cases with confidentiality, and makes recommendations for action based on its findings.

Importance of Awareness and Training

Awareness is a key factor in making the POSH Act work in actual life. Employees should receive regular workshops, seminars, and training sessions to imbibe acceptable behaviours, reporting mechanisms, and recognize their rights and responsibilities. A culture of employee safety, open communication, and gender equality will boost morale and productivity in the workplace.

Conclusion

The POSH Act plays an important role. Only if the organizations follow the law seriously and build a culture of respect. And accountability, they will avoid legal problems. And have workplaces where all feels valued and safe. 

FAQs

Q1: Under whom does the POSH Act apply? 

The Act applies to all working women, including interns and employees on a part-time or contract basis.

Q2: What is the work of the IC? 

The IC has multiple roles. It examines complaints. Also provides recommendations for action against sexual harassment. 

Q3: Is there any way for men in the POSH Act? 

Many companies have gender-neutral policies in hr management. You need to clarify it first.  

Q4: List the consequences of what happens when an organization goes against the provisions of the POSH Act. 

Here is the list. Penalties, cancellations of licenses, and branding fallouts arise out of non-compliance.