2. Welfare Allowance

Welfare Allowance is the value to be assigned to the Welfare. This value is a starting value and is used in computing the actual amount to be paid (or deducted) to the Employee.

To Manage Welfare Allowances:

Welfare Allowances are assigned based on the following parameters:

• By Cadre: All Employees belonging to a particular Cadre will have this Welfare assigned to them and during payroll the amount of the welfare will be calculated and paid (or deducted) to all Employees belonging to that Cadre.

• By Department: All Employees belonging to a Department will have the Welfare assigned to them and during payroll the amount of the welfare will be calculated and paid (or deducted) to all Employees belonging to that Department.

• By Designation: All Employees with a Designation will have the Welfare assigned to them and during payroll the amount of the welfare will be calculated and paid (or deducted) to all Employees with that Designation.

• By Employee: Welfares may also be assigned to specific Employees as well, in that case that Welfare will apply ONLY to that Employee.

Precedence:

In case a particular is applied to an Employee and to the Cadre & the Department that the Employee belongs to or to the Designation that the Employee has - a precedence rule applies to the Welfare.

For instance lets say for an Employee A that has the Cadre Officer, Department Projects and Designation Sr. Manager:

1. The Basic Welfare for A (BY Employee) is set to Rs. 10,000
2. The Basic Welfare for Officer (BY Cadre) is set to Rs. 8,000
3. The Basic Welfare for the Projects Department (BY Department) is set to Rs. 6,000
4. The Basic Welfare for the Designation Sr. Manager (By Department) is set to Rs. 12,000

The precedence rule says that:

1. Welfare Allowance BY Employee OVERWRITES
2. Welfare Allowance BY Cadre OVERWRITES
3. Welfare Allowance BY Department OVERWRITES
4. Welfare Allowance BY Designation

Thus in the above example the Basic Welfare BY Employee Rs. 12,000 would overwrite all other assignments.

Activation / De-Activation:

When a Welfare Allowance is added it is Activated - i.e. ready to use. If a Welfare Allowance needs to be stopped (i.e. not used in a subsequent Payroll Runs) permanently or temporarily the Allowance can be De-activated.

To Deactivate an Allowance, select the Allowance and click on teh De-Activate Button.