Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Minimum wage does not include the employer’s share of PF and ESIC; and it has been checked before deduction of employee’s share of PF.
From India, Madras
Minimum Wages does not include PF and ESIC.

PF and ESIC provisions require contributions from employer as well as employee. It requires employer to contribute to the account of the employee. The provisions also authorizes employer to deduct contributions of employee from his earnigs - the minimum wages.

Contributions by employer are over and above minimum wages to be paid to the employee. Employer can not deduct his share of contibutions from earnings (minimum wages) of the employee.

Example:

If in a region / state minimum wages is Rs. 140 per day and Spl Allowance / DA is Rs. 15 per day (Total Rs. 155 per day),

an employee who has worked for 25 days will earn Rs. 3875 in the month.

His PF contribution (employee's side) will be Rs. 465 which shall get deducted from his earnings. An equal amount of contribution Rs. 465 will have to be added by the employer. A total of Rs. 930 will get deposited in the employee's PF account. Thus making the total Rs. 4340. i.e. Rs. 173.5 per day for that particular month.

However he will take home an amount of Rs. 3410 for that month i.e. Rs. 136.4 per day, which gets confused with minimum wages for the employee.

Similar contribution method applies to ESIC also.

Hope I have been able to provide clarity on the question. I may be corrected wherever wrong / incorrect.

From India, New Delhi
Dear All
Minimum wages includes only Basic & DA. Every year respective state Govt will relese the notification of retes of Minimum wages. they will calculate the points based on cost of living.based on this points tey will fix the rates of wages, its differ from one industry to another industry

From India, Bangalore
Dear Nishu, You seems to be not clear what you want to know. Please be informed that ESI/EPF contribution shall be deducted on M/Wages as applicable in your state. Surendra Verma
From India, Delhi
Hi all,
can someone please provide me to how to quote the price for minimum wages telangana state. With esi, epf and bonus.
Also under what category can i find housekeeping wage details..
Regards
uma rani

From India, Hyderabad
I worked OT 300 Hrs in a month can my employer face any problem from govt.
From India, Varanasi

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™