Monday, February 07, 2005

Those compensation packages - HR proposes; FM disposes

The B-School placement season is on. Its a mutual selection process. Companies make a sales pitch in their presentation to attract 'the right kind of people' while candidates put in a fight for the companies they want to get in. One parameter that every company which makes a presentation on campus gets evaluated on is compensation package. It would definitely figure into Top 5 (I am more tempted to right 3) for every individual. The Buzz this year (or maybe every year for all I know) is flexible compensation packages or cafeteria benifits. Most companies seem to provide compensation packages where in you can structure the package (apart from certain specified components) so as to suit your life style. The idea you can minimize your tax liabilities the way you want. Companies also offer perks, which if paid in terms of cash would be subject to IT deductions.

But for all you know - The company HR/salaried executive proposes - FM disposes.

Just read this article. The gist is this. It seems the Fin Min is planning to bring all those perks (specifically credit cards, club memberships, tranport - company owned car & chaffueurs, Health clubs etc) under the tax scanner. So a friend of mine who works in this world's most dominant software company whose products run more tha 90% of PCs and claims he enjoys perks above 50% of his salary, might be in for a shock after the budget.

So could we. Most of will be getting our first salaries in June/July. The rule sof the game might have changed by then.
The article is here

8 comments:

Darth Midnightmare said...

Thanks for dropping by.

As for these rules, the silly thing is all this is being done because of their refusal to disinvest or pursue further economic reforms (Gawd! I hate the Commies). This is a very disturbing trend and so is their other measure of forcing all PSUs to declare extraordinary dividends (200%). These measures they say are being taken to reduce the impact of an increased fiscal deficit. The point is it's all illogical and will backfire massively sometime soon.....

Anand said...

No, that's been a buzz about that for quite some time now.
While it may be the Top 3 criteria, I can safely say that it is the Top One as far as others around the individual go.
Again, as far as Taxes go, there is a rarefied pecuniary atmosphere prevailing and hence beyond a point, one can get no benefits at all--whatever one does.So it will boil down to what view the firm takes on the QOL of the employee.

Govar said...

Top 3 or top 5? You gotta be kidding! Reality stinks. :)

And abt the perks being taxec, I have mixed feelings. One, in a country of poor, we deserve to be taxed. The other: Govt tries to capitalize, and even exhaust, from salaried employees while lotta people get away with it quite easily. The right thing to do would be to try and bring everyone into the tax net. But then, if only things are so simple...

yell said...

Neat blog, I like the the general style and content.
Be back often...

Anonymous said...

Hi Sona...

How r u doing? Nice to read ur postings..today only came to know abt ur blog from ymcamob...!!

But even before I was so sure that u must be posting somewhere...i know...U cannot keep ur .. shut..:))just joking...

Keep writing baby ...!!

N We ll keep following...Have nice time dear..stay in touch..!!
--Deepika

Unknown said...

We are awaiting a new post sonia....!!!

Anonymous said...
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P3 said...

You have a very good writing style.