Statutory Employee

What is the meaning of statutory salary?

Statutory salary pertains to the remuneration that an employee is obligated to receive in accordance with the laws and regulations of the country or region in which they are employed. This encompasses the fundamental salary along with any obligatory allowances, bonuses, and benefits mandated by employment laws.

The statutory salary is established by legal provisions, ensuring that employees receive the minimum compensation mandated by the governing authorities.

What are the statutory deductions for employees?

Statutory deductions for employees are mandatory deductions from their salary or wages as per the laws and regulations of a particular country.

Common statutory deductions include:

• Deducted at source based on the employee's taxable income.
• Contributions towards social security programs, including retirement benefits and health insurance.
• Deductions for healthcare programs.
• Mandatory contributions to the employee's pension fund.
• Contributions to the unemployment insurance fund.

What is statutory and examples?

Statutory is a term associated with statutes, which are laws established by a legislative body. It finds application in diverse contexts, including statutory law, statutory requirements, or statutory obligations. Essentially, it refers to laws that have been formally drafted and officially ratified.

Here are some examples:

• Statutory Rape refers to sexual activity between an adult and a minor, where the minor is considered too young to provide legal consent. Laws regarding statutory rape vary by jurisdiction.
• The Clean Air Act in the United States is a statutory law that sets the regulations for air quality standards.
• A company might have statutory requirements to provide certain benefits to its employees as per labor laws.

What is statutory and non statutory?

Statutory refers to legal provisions established by a legislative body, creating binding regulations or obligations. Non-statutory denotes practices or rules not formally mandated by law. While statutory laws are legally enforceable, non-statutory elements are often discretionary or arise from customary practices, providing flexibility in their application.

What is statutory rights in India?

In the context of India, statutory rights denote the rights conferred and safeguarded by particular statutes or laws instituted by legislative bodies. These rights encompass a broad spectrum, incorporating fundamental rights ensured by the Constitution of India, as well as rights pertaining to employment, consumer protection, property, marriage, and various other domains. Illustratively, the Right to Information (RTI) Act, the Consumer Protection Act, and diverse labor laws delineate the statutory rights afforded to citizens in specific scenarios.

What is the difference between statutory and non statutory benefits?

Statutory benefits are those mandated by legal regulations or laws, encompassing requirements like government-prescribed social security contributions or minimum wage standards. In contrast, non-statutory benefits are discretionary and offered at the employer's choice, such as health insurance or retirement plans.

While statutory benefits are mandatory and universally applied, non-statutory benefits are frequently utilized as incentives for employee attraction and retention, exhibiting variability among employers.

What is company statutory documents?

Company statutory documents are essential legal records that businesses must maintain to comply with regulatory requirements. Instances include the Certificate of Incorporation, Memorandum and Articles of Association, Annual Returns, Financial Statements, Register of Members, and Minutes of Meetings. These records offer essential details regarding the company's organizational framework, activities, and financial standing.

What are statutory benefits in CTC?

Statutory benefits in the Cost to Company (CTC) encompass mandatory contributions and entitlements provided by employers as per legal requirements. These include contributions to Provident Fund (PF), Employees' State Insurance (ESI) for medical benefits, gratuity for long-term service recognition, and professional tax.

Employers factor in these statutory benefits when calculating the overall compensation package, reflecting the total cost incurred by the company for employing an individual. These benefits ensure compliance with labor laws and contribute to employees' financial well-being and social security.

Which of the following is not statutory?

The following examples are typically considered non-statutory, meaning they are not legally mandated by statutes or laws:

• Bonuses that employers have the discretion to provide but are not required by law.
• Work schedules that deviate from standard statutory working hours, based on employer policies.
• Programs initiated by employers to promote employee well-being, which are not mandated by law.
• Informal programs designed to acknowledge and reward employees, usually at the employer's discretion.
• Plans that allow employees to purchase company stock, often at a discount, but are not mandated by law.

Which is the best example for statutory right?

A prime example of a statutory right is the "Right to Education" as mandated by laws in various countries. This right ensures that every child has the legal entitlement to receive education up to a certain age or level. The details may differ depending on the jurisdiction, but the core principle is embedded in statutes to advocate and safeguard the right to access education as a fundamental and essential entitlement for all children.