IndiaMART Moves To Weekly Salary Pay Policy in India, First in the Country!

On Sunday one of the biggest B2B eCommerce companies IndiaMart took a revolutionary decision by announcing its move of weekly salary pay disbursement regime. 

Amidst this flexible work culture and pandemic situation, IndiaMart has taken this decision in order to release their employees from the financial burden. According to IndiaMart, they are the first Indian company to take such a step and it will help to motivate their employees thus changing the dynamics of the global economy.

Also, this revolutionary step of IndiaMart triggered hustle and bustle on Twitter. Many people are in favor of the rule as it can provide them with financial balance and help them to manage their expenses properly. But on the other hand, there are people who are claiming that weekly payout will lead to more spending than saving. The cash flow will increase and rather than saving large amounts people will end up doing unnecessary expenses. 

Whereas, as per IndiaMart, this change will help them to retain talented employees for a longer period of time as it will ensure financial wellness. They also tweeted, 

“With an aim to build a flexible work culture and ensure the financial wellness of our employees, #IndiaMART becomes the first Indian organization to adopt a weekly payout of salaries!”

The employees will be given the paycheck at the end of every week, helping them to plan their bills and personal budget accordingly. Furthermore, most of the millennial coward who works in big companies almost live away from their families and this weekly payout will help them to manage their budget and they will not have to wait till the end of the month. 

Talking about IndiaMart InterMESH ltd., it is an eCommerce company that provides B2B solutions to customers. It was started in the year 1996 by Dinesh Agarwal and Brijesh Agrawal and works by customer-to-customer sales through their website. As of the 31st March 2021, IndiaMart has around 3560 employees and out of which 836 are on the contractual basis and2724 are permanent employees. 

Although, this system of weekly payout is being practiced in many developing countries including, New Zealand, Hong Kong, the United States, and Australia, mostly for the hourly employees and has been proven successful. Therefore, the same concept has been applied by IndiaMart and the COO Dinesh Gulati said: 

“Amidst the rapidly evolving flexiwork culture, instant gratification is what every employee expects. We believe weekly payouts will be appreciated by one and all across the organisation. We had started taking steps in this direction many years back when we migrated to weekly incentive payouts for many roles across the organisation.” 

Speaking about the new rule IndiaMart founder Dinesh Agrawal tweeted, 

“With an aim to build a flexible work culture and ensure the financial wellness of our employees,  IndiaMART becomes the first Indian organisation to adopt a weekly payout of salaries.”

Although the introduction of this rule will be great for balancing the financial needs of the employees but can also create hassle in their tax and other administrative work thus increasing the paperwork. According to G Sekar, Central Council Member, Institute of Chartered Accountants of India,

“the law requires an employer to deduct TDS every time a payment is made to an employee towards salary advance, salary arrears or salary earned. So if salary is paid every week, the incidence of TDS will happen four times in a month. And the entire TDS collected in a month needs to be remitted to the government in the subsequent month within the specified date.”