Do I need to show Perdiem in Salary Calulation(Tier 1)

[spanig]

Hi ,
I am planning to apply for Tier 1 (from Delhi) in another 1 week. I have a question on salary. Here is my case

A) I am an employee of Indian Company and for last 1 year, I am in Sweden on WP from my Indian company.
B) My Indian company pays me full Indian salary in India ( as I used to get before when I was in India) . I am getting my regular Indian payslip as before. Salary is credited to my Savings account in India
C) They are also paying me daily allowance (Per diem) in Sweden. I get separate salary statement for this in SEK (Swedish Currency) every month. This is credited to another Indian Account in SEK.
D) I also got HRA in Sweden which I reimbursed. This does not reflect in my SEK salary statement . But reimbursed money gets credited to my Indian savings account

My Indian Salary (Point B above) that I have received in last 12 months is sufficient for me get the required points in salary section(India Band).

My Question
1. Since I lived outside India for more than 12 months on WP , Which Band (India Band or Sweden Band) will they consider for salary calculation ? Will they check my entry and exit from India through the immigration Stamp to know where I have worked last 12 months and apply the band accordingly.

2. Do I need to show my SEK salary statement at all ? (Assuming my case salary falls in India Band and I don’t need this because my Indian salary is sufficient)

3. If I have to show my Perdiem in Sweden , then whether this will go into annexure as information or I need to include this to calculate points.

4. Do I need to show my HRA that I received as reimbursement in India? If I need to show, how will I do and what explanation I give?


Please advice

Thanks
Spanig

[spanig]

Hi

Would really appreciate valuable inputs from senior members. This is the biggest confusion I have now

Thanks
spanig

[mulderpf]

You use the band of the country where you performed the work, not the currency was paid to you. So if you were working in Sweden, you should use the Swedish uplift ratio (if there is any) for all your earnings while you were there, regardless of the currency it was paid in.

Here's some guidance for you.

The country in which you have been working, rather than your nationality, determines the income bands against which we will assess the earnings.

[rizwan567]

Mulderpf is right

[spanig]

Hi ,

Thank you very much your reply. In my case ,
My Indian company paid me GROSS INR 12,50,000 Lakhs (GBP 17,626) In india and paid perdiem 1,68,000 SEK ( GBP 15,593) in sweden in last 12 months.

So shall I calculate my uplift ratio below

a) In India ( Uplift ratio 5.3) = GBP 17,626 x 5.3 = GBP 93,417
b) In Sweden ( Uplift ratio 1) = GBP 15,593 x 1 = GBP 15,593

So total = GBP 93417 +GBP 15,593 = GBP 109010 ( this means I will get 45 points and hence I am qualified)

If I have to put same sweden uplift in my indian salary , then Total will be GBP 17,626 + GBP 15,593 = GBP 32855 ( this means I will get 15 points and hence I am NOT qualified)

Please help in clarifying the correct calculation.

I also got HRA in Sweden as re-imbursement . AS per the guidelined I cant use in my salary points calculations, hence I didnt include that in my calculations

Thanks
spanig

You use the band of the country where you performed the work, not the currency was paid to you. So if you were working in Sweden, you should use the Swedish uplift ratio (if there is any) for all your earnings while you were there, regardless of the currency it was paid in.

Here's some guidance for you.

The country in which you have been working, rather than your nationality, determines the income bands against which we will assess the earnings.

[mulderpf]

Hi ,

Thank you very much your reply. In my case ,
My Indian company paid me GROSS INR 12,50,000 Lakhs (GBP 17,626) In india and paid perdiem 1,68,000 SEK ( GBP 15,593) in sweden in last 12 months.

So shall I calculate my uplift ratio below

a) In India ( Uplift ratio 5.3) = GBP 17,626 x 5.3 = GBP 93,417
b) In Sweden ( Uplift ratio 1) = GBP 15,593 x 1 = GBP 15,593

So total = GBP 93417 +GBP 15,593 = GBP 109010 ( this means I will get 45 points and hence I am qualified)

If I have to put same sweden uplift in my indian salary , then Total will be GBP 17,626 + GBP 15,593 = GBP 32855 ( this means I will get 15 points and hence I am NOT qualified)

Please help in clarifying the correct calculation.

I also got HRA in Sweden as re-imbursement . AS per the guidelined I cant use in my salary points calculations, hence I didnt include that in my calculations

Thanks
spanig

You use the band of the country where you performed the work, not the currency was paid to you. So if you were working in Sweden, you should use the Swedish uplift ratio (if there is any) for all your earnings while you were there, regardless of the currency it was paid in.

Here's some guidance for you.

The country in which you have been working, rather than your nationality, determines the income bands against which we will assess the earnings.

I'm getting very confused. Where were you working when you earned the INR, Sweden or India? If you were working in India then you can apply the uplift ratio, if you were working in Sweden, you can't. It doesn't matter where the money was paid, it matters where you worked (e.g. earned) it. You'll need to make your situation very clear when you apply, because you have even me confused here!

[spanig]

Hi ,

Sorry if i was not very clear. Just to make it clear , I was working in Sweden for last 12 months on Work Permit. I am now back in India and wants to apply Tier 1.

During this period , my Indian company paid me GROSS INR 12,50,000 Lakhs (GBP 17,626) In india and paid perdiem 1,68,000 SEK ( GBP 15,593) in sweden in last 12 months.

If I understood correctly,

Since I have worked in Sweden , hence I cant get any uplift (Sweden uplift ration is 1) in any of my payments irrespective of where the payment was made .

I need 40 points from my salary to get the required points..but my total salary is coming GBP 17,626 + GBP 15,593 = GBP 32855 . Which is just 15 points.

Pls confirm.


Thanks
spanig[/list]

[geriatrix]

If I understood correctly,

Since I have worked in Sweden , hence I cant get any uplift (Sweden uplift ration is 1) in any of my payments irrespective of where the payment was made .

Correct!

Also, if your payslips mention "per diem", it may not be considered as earnings! Because, technically, per diem is not an income but payment by your employer to cover your expenses (accommodation, travel, food, etc.) in the country you are working.


regards

[spanig]

Hi sushdmehta ,

Thanks for picking my queries. Here is the twist.

During my stay in Sweden ,

a) I got my regular indian pay slip which does not mention anything about perdiem and my salary goes to my saving account.

b) I got a separate perdiem statement from the company and the perdiem money goes into another bank account .

So effectively neither in my India payslip nor my savings account has any track of perdiem.

I am not sure whether not mentioning sweden work permit will help my case

any suggestion ??

If I understood correctly,

Since I have worked in Sweden , hence I cant get any uplift (Sweden uplift ration is 1) in any of my payments irrespective of where the payment was made .

Correct!

Also, if your payslips mention "per diem", it may not be considered as earnings! Because, technically, per diem is not an income but payment by your employer to cover your expenses (accommodation, travel, food, etc.) in the country you are working.


regards

[geriatrix]

No twist but a lack of understanding I guess!

In my response above, replace "payslip" with "Swedish perdiem statement" and then read the response.


regards

[mulderpf]

I am not sure whether not mentioning sweden work permit will help my case

Okay, so reading back on this, you are saying that you want to apply in India and use Indian uplift ratio and not mention anything about Sweden?

You might get away with it, but since you are submitting your passport, I very much doubt it. If this is detected (and based on the documentation you will be submitting, will be very likely that they'll pick it up), it will constitute deception in which case you will get a 10 year ban from entering the UK (you are not mentioning a fact which will materially alter the outcome of your application - that is deception). And as with other deception cases, it will very likely count against you when you apply to any other country as well. Not worth it if you ask me.

[rizwan567]

I completely endorse the comments of mulderpf.