Cost To Company In India: A Façade Or A Myth
- IJLLR Journal
- Jun 5
- 2 min read
Muktha Bhat, BBA LLB, KLE Society`s Law College, Bengaluru
Archisha Kashyap, BBA LLB, KLE Society`s Law College, Bengaluru
ABSTRACT
The entire concept of labour remains dependent on the pay it ensues. The labour laws have been considered as welfare laws in India due to their interpretation, but behind the curtains, they consist of several loopholes which are covered by the concept such as ‘benefit’ and ‘welfare’. Employees often face the dangers of several concepts such as payroll fraud, a conflict between take-home, unpredictable salary deduction, unpaid overtime, unpaid gratuity and provident funds and so on, due to the fluctuating amounts and their illegal utility by organisations. The Indian salary structure is built on components like basic salary, allowances, social security contributors, and reimbursements. Cost to company is often predefined by companies in the form of total expenses of employees that an employer spends annually, which is a complete bundle of expenses in the form of a package with all forms of expenditure an organisation bears towards its employees. Employees often remain unaware of the viability of certain deductions made using the façade of compulsory deductibles. Companies use tactics such as non-cash components in the cost to companies in the form of health insurance, provident fund contributions and gratuity which are valuable but can lead to an inflation in the cost to company without changes in the cash in hand. This research paper would involve a detailed study of the concept of cost to company in the perspective of its role in a company and the impact it creates in the salary structure in India, and also on employees, whether positive or negative, following its utility for unfavourable purposes, leading to personal gains of employers. The research aims to create an understanding of the concept of cost to company and the controlling effect it perceives in terms of salaries of employees who are unaware of such utility.
Keywords: Cost, Company, Salary, Pay, Employer, Employee, Illegal, Benefits.
