Hi!!!
I am working in a textile industry in Pune.The company falls in Zone - I and its Minimum wages (Special Allowance) are Rs.4289/-
My query is relating to Minimum Wages. If I bifurcate Rs. 4289/-
as Basic - 40% of (minimum Wages), HRA - 5% of (Minimum Wages) and remaining of that (mimimum wages) is considered as Special Allowance.
Basic (40%) - 1750.60
HRA (5%) - 214.45
Spl All - 2358.95
Gross - 4289.00 (Minimum Wages)
1) Is it the right way of calculating the Minimum Wages.
2) While calculating the CTC should I consider the (PF/ESI/Gratuity)
e.g.
Basic (40%) - 1750.60
HRA (5%) - 214.45
Spl All - 2358.95
Gross - 4289.00 (Minimum Wages)
======
PF (13.61%) - 554.55 (Employer COntribution)
ESIC (4.75% - 203.73 (Employer COntribution)
Grty (4.80) - 195.58
Total - 953.85
=======
C.T.C - 5242.85 (Gross + Total)
=======
Please clarify.
Regards,
Rahul Vaidya

From India, Pune
I am working in a textile industry in Pune.The company falls in Zone - I and its Minimum wages (Special Allowance) are Rs.4289/-
My query is relating to Minimum Wages. If I bifurcate Rs. 4289/-
as Basic - 40% of (minimum Wages), HRA - 5% of (Minimum Wages) and remaining of that (mimimum wages) is considered as Special Allowance.
Basic (40%) - 1750.60
HRA (5%) - 214.45
Spl All - 2358.95
Gross - 4289.00 (Minimum Wages)
1) Is it the right way of calculating the Minimum Wages.
2) While calculating the CTC should I consider the (PF/ESI/Gratuity)
e.g.
Basic (40%) - 1750.60
HRA (5%) - 214.45
Spl All - 2358.95
Gross - 4289.00 (Minimum Wages)
PF (13.61%) - 554.55 (Employer COntribution)
ESIC(4.75%) - 203.73 (Employer COntribution)
Grty (4.80) - 195.58
Total - 953.85
C.T.C - 5242.85 (Gross + Total)
Please clarify.

From India, Pune
Dear Rahul ji,
Your quarry: you have not clearly mention for the calculation for Minimum Wages belongs to which firm. For details about the Minimum Wage calculations first to know the Act. The attachment has already in this cite for your reference again attached, please view.
Regards,
PBS KUMAR

From India, Kakinada

Attached Files
File Type: pdf KNOW ABOUT MINIMUM WAGES ACT.pdf (58.0 KB, 6454 views)

Dear rahuls_7979

Certain companies in collusion with their HR having questionable moral value and ethics; have always been attempting to deprive the lowest level of workers of their rightful share of statutory benefits (which are based on Basic pay);

by introducing the device of bifurcating EVEN their MINIMUM WAGES into several 'imaginary'/'dubious components.

If you are so concerned abour HRA and Spl. allowances; why not give it in addition to the Minimum Wages ??

Why not take the Minimum Wages as Basic Pay ??

By attempting to bifurcate the MINIMUM WAGES in the manner given by you; as below :

If I bifurcate Rs. 4289/- as Basic - 40% of (minimum Wages), HRA - 5% of (Minimum Wages) and remaining of that (mimimum wages) is considered as Special Allowance.

Basic (40%) - 1750.60

HRA (5%) - 214.45

Spl All - 2358.95

Gross - 4289.00 (Minimum Wages)


who are you trying to fool ? the government and the authorities ?

Do remember, the effects would be felt on the family and children of the poor workers.

The CONCEPT OF MINIMUM WAGES was to set a WAGE FLOOR; so that employers can give higher, better and fair wages.

By trying to create a 60% hole even in that paltry Minimum wage; Dear Rahul, I have no idea what you are trying to achieve. Perhaps a good measure of monetary benefit for your family and some quick promotions for yourself !!

Do think over, whether it is more important to be a "good" Human Resource professional or a good Human Being.

Warm regards.

From India, Delhi
Hi Dear Raj Kumar... I just want to clear my doubts and the proper way of calculating the minimum wages. If I making any mistake kindly clear my doubts. Thanks & Regards. Rahul
From India, Pune
the minimum wage can be considered as basic wage as the gross salary that has to be drawn by an employee shouldd compromise of basic salary+ H.R.A+ other allowances based on companies structure except the basic wage has to be considered as 40% or 50% which ever is the least,from the gross salary whatever deduction like ESI,EPF, pt etc are done resulting in net slary.
The employer contribution wont be considered into C.T.C, ONCE GO THROUGH LAWS LIKE MINIMUM WAGES ACT AS DIVIDING MINIMUM WAGES INTO SALARY COMPONENTS IS AGAGINST TO LAW.
Thanks and Regards,
Venu

From India, Visakhapatnam
Minimum wages act very clearly says that definition of minimum wages is basic + da + hrs. All other allowances are excluded. If u change the structure just to save on pf, first you will be liable for differential wages (which u are paying as special allowance and is not counted in wages under min wages act) and penalty. Secondly, pf department will penalise you for not paying pf on minimum wages.
There is a limit on how long you can get away by bribing the labour department inspector.

From India, Mumbai
  • I would like to put forth very important and relevant point relating to Minimum Wages Applicable in state of Maharashtra
  • Government of Maharashtra has prescribed two components of Minimum Wages viz. 'Salary or Basic Salary' + 'Special Allowance' both these components are separately prescribed and both are required to be paid.
  • Both Salary and Special Allowance are declared Industry Specific and Zone Specific (geographical area). Mr. Rahul will have to only pick up the figures from Govt. Notification applicable to Textile Industry in Zone I.
  • In addition to above 5% HRA is also payable, though it is not a part of Minimum Wages, it is required to be paid in Maharashtra under separate legislation

From India, Pune
Dear All, nice to see the argument , herewth i have attached the judgement for not to bifurcate the minimum wages. Lakanmahe
From India, New Delhi

Attached Files
File Type: pdf AIRFREIGHT[1].pdf (1.28 MB, 1431 views)

Hi Rahul,
Minimum wages is only Basic and VDA. As per the notification of the concerned stage government gazette it contains only Basic and VDA. Apart from if you are paying extra can be classified into other allowance like HRA, Conveyance, Education Allowances, Special Allowance etc.,
As per my knowledge you can not bifurcate the minimum wages and PF to be deduct on the minimum wages.
Regards,
Krishna Prasad H N

From India, Bangalore

If you are knowledgeable about any other fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.







About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2021 Cite.Co™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server