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Salary Revisions

When you promote an employee, give a raise, or adjust compensation, Omnivoo handles the salary revision and recalculates all tax and statutory components automatically.

How to Revise Salary​

For Employers​

  1. Navigate to Employees on your dashboard.
  2. Select the employee whose salary you want to revise.
  3. Click Revise Salary.
  4. Enter the new annual CTC in INR.
  5. Set the effective date -- when the new salary takes effect.
  6. Review the updated salary breakdown (Basic, HRA, Special Allowance, PF, gratuity).
  7. Click Confirm Revision.
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Omnivoo automatically recalculates all components based on the new CTC. You only need to enter the new CTC amount -- we handle the rest.

Effective Dates​

Salary revisions can be:

  • Prospective (future date): Takes effect from the specified month. No arrears calculation needed.
  • Retroactive (past date): Omnivoo calculates arrears for the months between the effective date and the current month. Arrears are paid in the next payroll cycle.

Arrears Calculation Example​

If an employee's CTC is revised from ₹12,00,000 to ₹15,00,000 effective April 1, but the revision is processed in June:

  • April and May were paid at the old CTC.
  • Omnivoo calculates the difference for April and May.
  • Arrears are added to the June payslip as a separate line item.
  • TDS is recalculated for the entire financial year to account for the higher salary.

Impact on Components​

When CTC changes, all components are recalculated:

ComponentImpact
Basic SalaryRecalculated as 50% of new CTC
HRARecalculated based on new Basic
Special AllowanceAdjusted as the balancing component
Employer PFRecalculated (12% of new Basic, capped at ₹15,000)
Employee PFRecalculated (12% of new Basic, capped at ₹15,000)
GratuityRecalculated (4.81% of new Basic)
ESIRe-evaluated -- employee may become ineligible if gross exceeds ₹21,000/month
TDSRecalculated for the remainder of the financial year
warning

If a salary revision pushes gross salary above ₹21,000/month, the employee exits ESI coverage. They will no longer receive ESI benefits from the effective month.

Impact on Tax​

Omnivoo recalculates TDS for the rest of the financial year:

  1. Projected annual income is updated based on the new salary.
  2. TDS already deducted in previous months is accounted for.
  3. Remaining TDS is spread evenly across the remaining months.
  4. Employee's investment declarations continue to apply.

This means monthly TDS may increase (or decrease) after a revision. Employees will see the updated deduction on their next payslip.

For Employees: What to Expect​

When your salary is revised:

  1. You will receive an email notification with the new CTC and effective date.
  2. Your next payslip will reflect the updated salary structure.
  3. If the revision is retroactive, you will see an Arrears line item on your payslip.
  4. Your TDS deduction may change -- check your tax computation statement for details.
  5. Update your investment declarations if needed to optimize TDS under the new salary.

Revision History​

Both employers and employees can view the complete salary revision history:

  • Employers: Go to the employee profile > Compensation tab.
  • Employees: Go to My Profile > Salary History.

Each revision shows the old CTC, new CTC, effective date, and who approved the change.

tip

Plan salary revisions to align with the start of a month. Mid-month revisions are possible but create prorated calculations that can be confusing on payslips.