What is the process of Increment with Arrear in HRXpert Software ?

In simple way, Increment means an increase in the salary structure of an employee. The increment can be done on quarterly basis or on yearly basis and it also depends on the overall performance of an employee working in an organization.

When such increment is given then it amounts to calculation and payment of arrears and further employees use them as a benchmark to either negotiate a pay increase or a starting salary with a new employer.

Example: If there are 400 employees in an organization and to manage the increment of 400 employees manually is a tedious task.

NEED OF INCREMENT IN AN ORGANIZATION

In every organization, there is a need of increment in the salary of employees which will help:

To boost the morale of the employees

To gain more confidence in the employees to increase & enhance their skills

To improve the Employee Satisfaction resulting in delivering better results & increase in their productivity and further growth of the company.

FEATURES/ADVANTAGES OF INCREMENT IN AN ORGANIZATION

Helps to motivate employees to work harder.

Increase in Salary leads in reducing the costs of hiring and training new employees i.e. Reduce Recruitment costs.

Enhance the quality in the employee’s performance.

Improve company productivity & Increase in profits (Business Growth).

Greater Job Satisfaction & Employee Retention.

OVERVIEW OF INCREMENT PROCESS IN MARG HRXPERT PAYROLL SOFTWARE

In Marg HRXpert Payroll Software, the employer can revised the salary of the employees in a simple, easy and in an automated manner.

In HRXpert Payroll Software, Increment can be done in two ways:

Percentage Wise

Amount Wise

PROCESS OF INCREMENT IN MARG HRXPERT PAYROLL SOFTWARE

Firstly, go to HRD Module >> Increment Entry.

The user will select Grade, Branch, Department and Designation. Then click “Show”.

Select “Employee” and then the user can either press “Enter” key, F10 function key or double click in order to change the increment.

Fill the increment entry details. The user can view “Income Head” on left side and “Deduction Head” on right side.

Case: If the user needs to fix any Income Head then go to Admin Tools>>CTC Breakup Setup

Enter “Show”.

Then click on “Edit” and fix the head/heads as per the requirement.

Suppose the user fix Medical & Transport heads and then click on “Save”.

Enter the “Increment Date” i.e. the date from which increment needs to be done.

With the help of HRXpert Payroll Software, there are two ways in which Increment can be done i.e. Percentage Wise & Amount Wise

Firstly, select “Amount”.

Suppose the user needs to increase the salary with amount Rs. 5000 then the user will enter the Amount as “5000” in the increment.

Also, the user will specify on which the amount needs to be added i.e. Basic, Gross or CTC. The user has selected “Basic” here so the amount will be added in “Basic Pay”. It means that earlier Basic Pay was 10,000 and after increment of 5000 the basic pay is 15,000.

So, let’s understand the different ways/methods to do increment in HRXpert Payroll Software in detail.

DIFFERENT WAYS/METHODS TO DO INCREMENT IN HRXPERT PAYROLL SOFTWARE

In Marg HRXpert Payroll Software, the user can do increment in 7 ways/methods:

Percentage + Basic

If the user needs to do the increment on the basis of “Percentage + Basic” i.e. if 20% increment needs to be done then the software will first calculate 20% of Basic Pay (20% of 10,000) and the amount which will be calculated gets added in CTC and then further gets bifurcated in other heads.

Percentage + Gross

If the user needs to do the increment on the basis of “Percentage + Gross” i.e. if 20% increment needs to be done then the software will first calculate 20% of Gross Salary (20% of 17,300) and the amount which will be calculated gets added in CTC and then further gets bifurcated in other heads.

Percentage + CTC

If the user needs to do the increment on the basis of “Percentage + CTC” i.e. if 20% increment needs to be done then the software will calculate 20% of CTC (20% of 19,322) and the amount which will be calculated gets added in CTC and then further gets bifurcated in other heads.

Amount + Basic

If the user needs to do the increment on the basis of “Amount + Basic” i.e. if the employer needs to do increment in the employee salary with amount 5000 then the software will simply add the 5000 amount in the Basic Pay.

The user can view that the earlier Basic Pay was 10,000 and after increment of 5000 the basic pay is 15,000.

Amount + Gross

If the user needs to do the increment on the basis of “Amount + Gross” i.e. if the employer needs to do increment in the employee salary with amount 5000 then the software will simply add the 5000 amount in the Gross Salary and also bifurcates it in the Income Head.

Amount + CTC

If the user needs to do the increment on the basis of “Amount + CTC” i.e. if the employer needs to do increment in the employee salary with amount 5000 then the software will simply add the 5000 amount in the Monthly CTC and also bifurcates it in the Other Heads.

Amount + Basic + Effect Other Amount

If the user needs to do the increment on the basis of “Amount + Basic + Effect Other Amount” i.e. the ratio in which the basic salary would increase then in the same ratio all the other income heads would also get increase.

Case: How to add the Balance Amount (if any) in the Income Head

In order to add the balance amount in income head; the user will press F2 function key and the Balance Amount will get added automatically in the Income Head (as shown below)

Fig. 1 Process to Add Balance Amount in Income Head in HRXpert Payroll Software

INTRODUCTION TO ARREARS/SALARY ADJUSTMENT

Basically, when the company is required to pay the outstanding amount of an employee i.e. the unpaid amount is known as Arrears (Salary Adjustment).For E.g. the Company has declared that the salary increment of employee by 15% must be from the month of April but got implemented from the month of September then in this case the unpaid amount from April to September is known as Arrears or salary adjustment.

Arrears always refers to the previous month’s payment or recovery and not for the current month.

REASONS TO GIVE ARREARS TO EMPLOYEES IN AN ORGANIZATION

Arrears can be given for various reasons i.e.

Due to delay in taking decision from the management on increment issue which leads to compensation at a later date.

Company may had financial crunch and decided to revise the salary from an earlier month at a later date.

Company may announce the incentive in terms of increment from an earlier date.

PROCESS OF ARREARS IN MARG HRXPERT PAYROLL SOFTWARE

If the employer needs to give the salary to an employee with Arrear then it can be easily given with the help of Marg HRXpert Payroll Software.

If an employee joins the organization in the middle of the month and the employer needs to give the arrear from the mid of the month then the employer needs to first create the attendance for that particular month with the help of Muster Roll.

In order to create Attendance through Muster Roll, go to Data Entry>>Attendance Entry>>Muster Roll Attendance

Select the month (April 2017) and click on “Show”.

Save the Attendance.

Fig. 1.1 Process to Save Muster Roll Attendance in HRXpert Payroll Software

Fig. 1.2 Process to Save Muster Roll Attendance in HRXpert Payroll Software

Now, the employer will lock the salary of that particular month of which Arrear needs to be given.

For that go to Data Entry >> Lock Monthly Salary.

Select the Month of which the Salary needs to be fixed/locked. Then Click on “Show”.

Enter the Date of Payment and Save it.

A message will get displayed that if the employer has locked the salary of a particular month then it can’t be further modified (as shown below).

Again the user will go to the increment detail window and specify from which date the Arrear needs to be applicable and also mention the Arrear Payment date.

Also, the Arrear amount will get displayed in the Income & Deduction heads along with the Arrear Summary.

If the user/employer needs to view the details of Previous and Next Employee then simply click on “Next” & Previous” options. (as shown below)

If the employer needs to do the increment of all the employees together then click on “Apply To”.

Then select All and click on “Apply”.

Fig. 1.3 Process to do Increment of all Employees in HRXpert Payroll Software

Now, click on “Processed”.

Fig. 1.4 Process to do Increment of all Employees in HRXpert Payroll Software

Process of Arrears Entry in Marg HRXpert Payroll Software

Go to Data Entry>>Arrear Entry

Fig. 3.1 Menu View to Arrear Entry in HRXpert Payroll Software

Click on “Show”.

Process to View Arrear Entry in HRXpert Payroll Software

Process to View Arrear Entry in HRXpert Payroll Software

The user can view all the Arrear Entries here (as shown below).

Fig. 3.3 View of All Arrear Entries in HRXpert Payroll Software

Fig. 3.4 View of All Arrear Entries in HRXpert Payroll Software

Process to View Arrear Report in HRXpert Payroll Software

Go to Reports>>Monthly Reports>>Arrear Report

Fig. 4.1 Menu View to Arrear Report in HRXpert Payroll Software

Click on “Display”.

Fig. 4.2 Process to View Arrear Report in HRXpert Payroll Software

The user can view that an Arrear Report has been displayed with the details of Arrears only. (as shown below)

Fig. 4.3 Snapshot of Arrear Report in HRXpert Payroll Software

Process to View Salary Slip in HRXpert Payroll Software

In order to view Salary Slip along with the Arrear, go to Reports>>Monthly Reports>>Salary Slip-View

Fig. 5.1 Menu View to Salary Slip in HRXpert Payroll Software

If the user needs to view the Salary Slip along with the Employer part then click on “Employer Part”>>Click on Arrear. Then click on “Show”.

Fig. 5.2 Process to View Salary Slip with Arrears in HRXpert Payroll Software

If the employer needs to view the Salary Slip along with the Arrears of all the employees of an organization then click on “Select All” or for a particular employee then select that particular employee and click on “Display”.