hi i am neeraj wants to discuss with you in such a topic on minimum wages i wants to clear it that is it any notification about the bifrucating of minimum wage neeraj
From India, New Delhi
2From India, New Delhi
Dear Niraj,
As far as Minimum Wage Rate is concerned, Employer can't bifurcate the same. If it is to be done, It can be done by the Appropriate Govt Only.
Refer Sec-4(2), Minimum Wages Act ,1948.
Gajraj,
As far as Minimum Wage Rate is concerned, Employer can't bifurcate the same. If it is to be done, It can be done by the Appropriate Govt Only.
Refer Sec-4(2), Minimum Wages Act ,1948.
Gajraj,
In my understanding as a professional with limited dealing with Labour Laws, and various court rulings on the subject of bifurcation, some of the points worth noting are as under: -
1 Min Wage Notfn are issued by the Labour Dept of the States.
2 In some cases it is given as lumpsum, and in others bifurcated into Basic, DA, VDA etc.
3 Where the Min Wage is already bifurcated, statutarily the same can not be bifurcated further, and the PF Contribution shall be based on the whole, as per the PF Act/ Rules/ Scheme.
4 The states where the bifurcation has not been given, the aspect is hazy, as such inviting bifurcation, so as to make savings on the PF contribution. Doing the same for ESI is prohibitive.
5 A number of cases on the subject have been arbitrated in various courts, and in most that I have read, the courts have given a ruling, that the Min Wages can not be further bifurcated. The cases go to the court, where the interpretations are not clear. Not all states have such ruling. Consolidated data would be available with consultants and lawyers
6 Such rulings are subject to a state concerned since the cases are based on the Min Wage in particular states.
7 I have my doubts, whether the same is clear in all the states, to incl Delhi. :?:
Am not a lawyer, nor practising professional, and these points come from day to day experience and inputs from court rulings and consultants we relate with.
Pradeep Bajaj 8)
From India, Delhi
1 Min Wage Notfn are issued by the Labour Dept of the States.
2 In some cases it is given as lumpsum, and in others bifurcated into Basic, DA, VDA etc.
3 Where the Min Wage is already bifurcated, statutarily the same can not be bifurcated further, and the PF Contribution shall be based on the whole, as per the PF Act/ Rules/ Scheme.
4 The states where the bifurcation has not been given, the aspect is hazy, as such inviting bifurcation, so as to make savings on the PF contribution. Doing the same for ESI is prohibitive.
5 A number of cases on the subject have been arbitrated in various courts, and in most that I have read, the courts have given a ruling, that the Min Wages can not be further bifurcated. The cases go to the court, where the interpretations are not clear. Not all states have such ruling. Consolidated data would be available with consultants and lawyers
6 Such rulings are subject to a state concerned since the cases are based on the Min Wage in particular states.
7 I have my doubts, whether the same is clear in all the states, to incl Delhi. :?:
Am not a lawyer, nor practising professional, and these points come from day to day experience and inputs from court rulings and consultants we relate with.
Pradeep Bajaj 8)
From India, Delhi
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