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Hr Professional
Personal Relationship Management
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Hi All,

I had asked the same earlier bt still i m in doubt..

My Company gives the unskiled labor a gross wage of 3594 (punjab). which is exactly the minimum wage according to the new minimum wage. This 3594 has basic 1400, HRA some 700, also has Conveyance, Special Allowance.

Then on basic we deduct the PF and ESI and give the eployee a net salary of 3363.. Is it ok or less or worng..???

Please help...

If u cdnt get th equestion, then please give ur no too, i would call..
Its very urgent...

Thanx all...

you have asked this query earlier also and earlier also we have replied.
you have to decduct ESI and PF on 3594 ie minimum wages you can not bifurcate minimum wages for PF point of view.
ESI is deducted on gross salary not on basic.
j s malik

The gross salary figures shoud meet the minimum wages. Also ESI is no the gross salary not on basic. regards Amit
Dear Rohit,
Unskilled labor comes under the informal sector. Now if your organization has hired them on contractual basis than the deduction of PF is must and also they will have equal previlige to that of the regular employees. (for e.g. leave structure,% allowances etc.)
So the first question we should ask is are they on contractual or no period basis...??
Zalak Dave,
Human Resource,
Adani Power Ltd.,
Ph No.:- +91-9725933139
Mail Me on:-

If you are paying the same amount equal to the minimum wages then you cannot bifurcate that amount for PF purposes. PF has to be paid on minimum wages at least not less than that. It is on your part whether you will pay more than any amount than MW. If not then here Basic=Gross. So ESI will be paid on the same amount.
Thanks & Regards

these type of practice is not good because govt. has already declared all the company will be paid minimum wages is its not divide any type of part.
So, you will be paid Minimum Wages under Haryana Act

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