The recent judgment on Airfreight states that for the definition of wages, it should refer Section 2 (h)
As per the Minimum Wages Act 1942, the wages is defined as followed under Section 2 (h)
"wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment 1[and includes house rent allowance], but does not include-
the value of
any house accommodation, supply of light, water, medical attendance, or
any other amenity or any service excluded by general or special order of the appropriate Government;
any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
any travelling allowance or the value of any travelling concession;
any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
any gratuity payable on discharge;
this means that HRA will very well form a part of wages as per Minimum wages act.
hope all of you will help me, below is thr scenario i have post the same long back but no one help me
* we are using around 700 contractual worker for our manufacturing process every month. Before may 2009 eveyone is getting paid for same rate but from may 09 onwars we seprate them in skilled & unskilled catagery and also we revised there wages, allownces & add some scheme to attract them.
And now from after revision in d.a aug 09 below is structure
Unskilled worker - Gross 4206.75 Daily wages 161.80
Skilled worker - Gross 5106 Daily wages 196.41
both have Basic 1200.00 & Da 1106.75
now problem is that when we pay ot on =(basic+da)/26/8*2 both will receive 22.18 rs for one hours
1. if Unskilled worker done ot for 8 hours he will get 8*22.18 = 177.44 which is higher than his daily wages which is 161.80. he will get 15.64 rs extra. in a month this catagery is having more than 3000 hours ot
2. if skilled worker done ot for 8 hours he will get 8*22.18 = 177.44 which is less than his daily wages which is 196.41. he will get 18.77 rs less. in a month this catagery is having more than 3000 hours ot
now problem is that i want to adjust basic, da & other allowance so he will get paid for OT as per his gross salary
my quetion is that
1. can i make basic less than da, if yes what is legal point (da will increase after certain period)
2. should i combine basic and da amount
3. can i pay ot on gross (but it will be one time only)
4. or is there any way out
i hope you undestand my problem; if you want some more information pl reply. i want to give this to our management within two days. i tried to put as much as possible, please help me out
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Topic Categories >> pension fund wages act basic salary provident fund minimum wages Location-India-Delhi
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