Dear all HR Professional
Can we bifurcate minimum wages into different components such as HRA, Conveyance Allowance, Medical Allowance etc.
What will be applicability of Maharashtra House Rent Act?
The above query is especially with respect to State of Maharashtra and recent notification on increase in Minimum rate of Wages in certain Schedules industries.
Regards.
From India, Nasik
8Can we bifurcate minimum wages into different components such as HRA, Conveyance Allowance, Medical Allowance etc.
What will be applicability of Maharashtra House Rent Act?
The above query is especially with respect to State of Maharashtra and recent notification on increase in Minimum rate of Wages in certain Schedules industries.
Regards.
From India, Nasik
Hello,
The answer to your query is YES!
If you kindly get hold ofs a Supreme Court judgement (1999 II CLR 537) Airfrieght Ltd. v State of Karnataka, the issue will be clear. Your labour advisor should have the judgement with him. In case he doesnot have, please communicate your fax number and I could fax it to you.
But remember, the judgement does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling Minimum Rate of Wages to be the "Basic Salary" and the Special Allowance to be the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity and Bonus on a higher quantum.
One has to be skillful in warding off such authorities if they happen to harass you.
In my line of work I have got many employers to implement their own structure of wages without many problems. But what is life without problems?
If you have more questions, ask!
Regards
samvedan
September 8, 2007
From India, Pune
The answer to your query is YES!
If you kindly get hold ofs a Supreme Court judgement (1999 II CLR 537) Airfrieght Ltd. v State of Karnataka, the issue will be clear. Your labour advisor should have the judgement with him. In case he doesnot have, please communicate your fax number and I could fax it to you.
But remember, the judgement does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling Minimum Rate of Wages to be the "Basic Salary" and the Special Allowance to be the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity and Bonus on a higher quantum.
One has to be skillful in warding off such authorities if they happen to harass you.
In my line of work I have got many employers to implement their own structure of wages without many problems. But what is life without problems?
If you have more questions, ask!
Regards
samvedan
September 8, 2007
From India, Pune
Hi Samvedan,
:) :)
i think you have deep knowledge in HR Field,i am also working in HR Dept, but i am fresher and daily i found one new query in my work, if you do not have any problem can i ask you my query by email, please tell me about yourself.
Regards
Vrusha
:P :P :P
:P :P
:P
From India, Chakan
:) :)
i think you have deep knowledge in HR Field,i am also working in HR Dept, but i am fresher and daily i found one new query in my work, if you do not have any problem can i ask you my query by email, please tell me about yourself.
Regards
Vrusha
:P :P :P
:P :P
:P
From India, Chakan
Dear samvedan
Thank you replying to my query so promtly. I am having copy of Judegement. I only disagree on pf, gratuity and bonus issue as all these components are governed by different acts. The definition of minimum wage also don't support the above component.
Regards
From India, Nasik
Thank you replying to my query so promtly. I am having copy of Judegement. I only disagree on pf, gratuity and bonus issue as all these components are governed by different acts. The definition of minimum wage also don't support the above component.
Regards
From India, Nasik
Hello Mr. Wankhede,
Your disagreement with what I said about PF, Gratuity and Bonus is NOT understood. I know since beginning that these are independent legislations
If the SMW (Min Rates of Wages+ Special Allowance) is given the status of (Basic salary+Dearness Allowance) then you would be using the base of (Min Rates of Wages+Special Allowance) for PF, GRatuity and Bonus purposes, BUT if you develop an independent structure of wages for your company where the (Basic +D.A.) component is lesser that the (Min Rates of Wages+Special Allowance), then you will be paying much less by way of PF and the allied dues.
I hope I am clear. I wish you had considered the matter before disagreeing as you would have landed the answer yourself!! And if you have the said judgement, the issue should have been clear at the out set. Or do you have any other queries that you have not raised?
Regards
samvedan
September 8, 2007
From India, Pune
Your disagreement with what I said about PF, Gratuity and Bonus is NOT understood. I know since beginning that these are independent legislations
If the SMW (Min Rates of Wages+ Special Allowance) is given the status of (Basic salary+Dearness Allowance) then you would be using the base of (Min Rates of Wages+Special Allowance) for PF, GRatuity and Bonus purposes, BUT if you develop an independent structure of wages for your company where the (Basic +D.A.) component is lesser that the (Min Rates of Wages+Special Allowance), then you will be paying much less by way of PF and the allied dues.
I hope I am clear. I wish you had considered the matter before disagreeing as you would have landed the answer yourself!! And if you have the said judgement, the issue should have been clear at the out set. Or do you have any other queries that you have not raised?
Regards
samvedan
September 8, 2007
From India, Pune
Hi samvedan,
I am in agrement with you. All labour laws have been independent. Your (basic +DA / Sp. All) should be at par with minimum wage applicable. If you are going to adopt your own structure then you have to prove that wage / salary you are paying to your employees is more then the minimum wage prevailing in your industry and area.
Regards,
Dharmendra
I am in agrement with you. All labour laws have been independent. Your (basic +DA / Sp. All) should be at par with minimum wage applicable. If you are going to adopt your own structure then you have to prove that wage / salary you are paying to your employees is more then the minimum wage prevailing in your industry and area.
Regards,
Dharmendra
Dear Samvedan,
I'l be obliged if you could email the Supreme Court judgement (1999 II CLR 537) Airfrieght Ltd. v State of Karnataka, to me. I need it to address an urgent issue. my email adress is
Regards,
Trupti
From India, Mumbai
I'l be obliged if you could email the Supreme Court judgement (1999 II CLR 537) Airfrieght Ltd. v State of Karnataka, to me. I need it to address an urgent issue. my email adress is
Regards,
Trupti
From India, Mumbai
Hello,
Regrettably, I do not have a soft copy of the said jusdgment, but I can mail a hard copy to whatever address you provide. Akternatively just check up with company advocate and he will be able to give you a hrad copy anyway!
Let me know what you desire!
Regards
samvedan
March 27, 2008
From India, Pune
Regrettably, I do not have a soft copy of the said jusdgment, but I can mail a hard copy to whatever address you provide. Akternatively just check up with company advocate and he will be able to give you a hrad copy anyway!
Let me know what you desire!
Regards
samvedan
March 27, 2008
From India, Pune
Dear Friends
If we read para 19 of the said judgement it iread as follows:
"The idea of fixing such wage in the light of the cost of living at a particular juncture of time and of neutralising the rising prices of essential [COLOR=blue! important][COLOR=blue! important]commodities[/COLOR] by linking up scales of minimum wages with the cost of living index is provided for in Section 4 but VDA is part and parcel of wages. Once rates of minimum wages are prescribed under the Act, whether as all-inclusive under Section 4(1)(iii) or by combining basic plus dearness allowance under Section 4(1)(i), are not amenable to split up. It is one pay package. Neither the scheme nor any provision of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same."[/COLOR]
It may pls be noted that the definition of Wages under the Act never say so that the Minimum wages can be bifurcated under various heads...
Regards
From India, Vadodara
If we read para 19 of the said judgement it iread as follows:
"The idea of fixing such wage in the light of the cost of living at a particular juncture of time and of neutralising the rising prices of essential [COLOR=blue! important][COLOR=blue! important]commodities[/COLOR] by linking up scales of minimum wages with the cost of living index is provided for in Section 4 but VDA is part and parcel of wages. Once rates of minimum wages are prescribed under the Act, whether as all-inclusive under Section 4(1)(iii) or by combining basic plus dearness allowance under Section 4(1)(i), are not amenable to split up. It is one pay package. Neither the scheme nor any provision of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same."[/COLOR]
It may pls be noted that the definition of Wages under the Act never say so that the Minimum wages can be bifurcated under various heads...
Regards
From India, Vadodara
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