Neer300182
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Mahesh S Patil
Hr Generalist- Statutory Compliance,salary
Hiten Parekh
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Sharmaneesu
Employee
Rath_ratikanta
Management Student
Jagjit_s4
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Sivan421
Labor Compliance
Pallavi.Pande
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BISON1957
Manager - Operations
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Thread Started by #sharmaneesu

Dear all,
i m little bit confused with the concept of minimum wages. kindly help.
I want to confirm whether minimum wages include Employee share of PF and ESI or not.
pls answer....
thanks in anticipation....
24th March 2010 From India, New Delhi
Thanks kapil.

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, [7] [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.

thanks again
24th March 2010 From India, New Delhi
Wages = all salary parts(attributes) except employee’s share of pf and esic(whatsoever is applicable)
25th March 2010 From India, New Delhi
Kindly go through the comments of sec1 minimum wages act and definition as well. it will help you in understanding the purpose of minimum wages act
25th March 2010 From India, New Delhi
Dear all ... i want to have the recent minimum wages rate (i.e for 2009-10 Maharashtra) for skilled unskilled and semi skilled workers.
25th March 2010 From India, Vadodara
don't be confuse with minimum wages and pf , esi. as per mininum wages act the basic rate has to be revised as per categorie so when basic rate will be changed in revised then pf esi will be deduct from the new basic rate
25th March 2010 From India, Angul
Dear Sir, As per the karnataka labour Minimum wages act the ESI and PF are not included in Minimum wages. Only Basic and VDA or DA is included in Minimum Wages. M.Surendra
26th March 2010 From India, Bangalore
Dear all ... i want to have the recent minimum wages notification of himanchal pradesh,uttarakhand and punjab state for skilled unskilled and semi skilled workers
26th March 2010 From India, New Delhi
Yes Minimum wages includes ESI (1.75) & P F (12%) contributions of the employee. For eg For a unskilled labor employed in central govt projects in Delhi minimum wage he should be paid is 203 rs. If he works 10 days his total earnings will be 2030 Rs in which the employer can deduct the above mentioned employee share of of ESI & PF. ie 2030-(36+243)=1751,Net pay. I think now it is clear.
Thank you
Sivan A
26th March 2010 From India, Madras
As far as concern with the Minimum Wages, its a part of the earnings only, not deductions of employee & thats very crystal clear.
Don't mixup & confuse.
Minimum Wages = Basic + DA declared by respective authority time to time for the specified catagories.
Regards,
Santosh
26th March 2010 From India, Pune
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.
26th March 2010 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.
27th March 2010 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
27th March 2010 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
27th March 2010 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
11th January 2017 From India, Hyderabad
I worked OT 300 Hrs in a month can my employer face any problem from govt.
25th August 2018 From India
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