Hr, Legal Compliance & Er-ir
Mahesh S Patil
Hr Generalist- Statutory Compliance,salary
Hr - Pharmaceutical Industry
Hr General Profile
Manager - Operations
to clear my doubt I have gone through minimum wages act 1948 also. it says:
(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,  [and includes house rent allowance] but does n6t include
(i) the value of -
(a) any house- accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) any travc1ling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge;
means it includes Employee contribution of PF and ESIC, permissible deduction.
24th March 2010 From India, New Delhi
25th March 2010 From India, New Delhi
26th March 2010 From India, Madras
Don't mixup & confuse.
Minimum Wages = Basic + DA declared by respective authority time to time for the specified catagories.
26th March 2010 From India, Pune
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.
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.
27th March 2010 From India, New Delhi
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
27th March 2010 From India, Bangalore