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Thread Started by #kiranikumari

Dear Seniors,
I have recruited few employees on company roles. Now as per our company policy and structure we have alloted them grades and freezed their basic, HRA & Convey & other allowances.
The query:- Is that necessary that the basic alloted to them should be not less than minimum wages if I have taken them on company roles or as trainees.
2. Is that sufficient the total gross salary is not less than minimum wages X 26 days.
Please clarify in this regard either of the condition has to be satisfied or none.
Regards,
Kiranikumari
3rd April 2011 From India, Bangalore
First of all be clear in mind whether these employees fall under the defination of worker under Min.wages Act. i.e whether they are engaged for manual, unskillled, skilled, clerical nature of work. If at all they fall, then while you decide on their pay grades, you will have ensure that their gross monthly ( wages for 26 days) are not less than min. rates of wages fixed by govt. for the scheduled industry under min. wages act. Also check whether your industry is a scheduled industry under M.W.Act 1948.
If they are not falling under min. wages act, then you can have your own structure and nothing do with min.wages.
3rd April 2011 From India, Nagpur
Kiranikumari,
If the gross salary an employer pays to the employee do not fall below 'Minimum Wages' notified by the Government from time to time, there is no violation of Minimum Wages Act. There is a Supreme Court decision to this effect.
Best regards,
Jaikrishnan
Company Secretary
Thiruvananthapuram
4th April 2011 From India
Kiranikumari,
If the gross salary an employer pays to the employee do not fall below 'Minimum Wages' notified by the Government from time to time, there is no violation of Minimum Wages Act. There is a Supreme Court decision to this effect.
Best regards,
Jaikrishnan
Company Secretary
Thiruvananthapuram
4th April 2011 From India
Dear All,
As per above discussion and concern put by kiranakumari about to fixing wages according the company structure.
This is okay with higher salary employees but we have to maintain basic according to their category.
we can say that gross salary is equal or higher than minimum wage. Because there is already a decision regarding the same by the high court HARYANA & PUNJAB as a organization can not bifurcate minimum wages in to other heads.
Because all benefits are calculated on basic only like as EPF and Bouns,Gratuty etc.
4th April 2011 From India, New Delhi
Dear All, Gross Salary/wages should not be less than minimum wages*26 days. Minimum wages applicable if business comes under scheduled declared by central or state governements. rgds
4th April 2011 From United States
Dear all, what mr.neeraj yadav told sounds right. if you are bifurcating the gross salary and tthe ebasic falls below minimum wage sall your contrbution mainly that of pf which will be below what you are supposed to pay by minimum wage.thus noncompliance exist in the case.. for eg say the minimum wage is 6000, the employer's pf contribution is720 rupees. when you have a gross pay of 7000bifurcated4000basic and 3000allowence thr employer's pf contribution is 480 only.so you are not meeting the standards . but the emplyees with higher salary this is not the case as mr.neeraj told
4th April 2011 From India, Madras
Dear All,
Pl. Go through the following, you will ge the answer of all your questions.
PF CONTRIBUTIONS NOT ATTRACTED ON ALLOWANCES EVEN WHEN PART OF MINIMUM WAGES : P&H - HIGH COURT
In a writ petition No.15443/2009 between APFC vs. G4 Security, the Punjab & Haryana High Court has held on 1st February, 2011 that the minimum wages can be bifurcated into allowances and the Provident Funds contributions will not be attracted on allowances. The judgment will be published in the next issue of the Labour Law Reporter.
so, you can bifurcate the min wages in to Basic and different allownaces and can deduct PF on that Basic, but still I have a confusion for the calculation of Bonus.
Regards,
ALPESH THAKKAR
Asst. Manager -HR
Advanced Systek Pvt. Ltd.
5th April 2011 From India, Ahmadabad
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5th April 2011 From India, Mumbai
HI what if the basic salary of salary break is less than minimum wages as per govt? As per above discussion only gross salary is taken in to consideration for min wage. Thanks
5th April 2011 From India, Delhi
Dear neeraj, Actually it other way around. "decision regarding the same by the high court HARYANA & PUNJAB as a organization can bifurcate minimum wages in to other heads." regards Manish
5th April 2011 From India, Mumbai
Dear alpesh, i have one question: How much min % basic should be of Gross? in case Gross is min. Wage! regards Manish Gupta
5th April 2011 From India, Mumbai
Dear Alpesh Thakkar ,
The judgement copy in enclosed here for your ref.
Dear Manish,
Minimum as Gross wages in not at all a fair wage as you know.
But argument shake we can fix 60 to 70% of it as Basic to satisfy the PF authorities.
Please add few points on this idea!
S.Sethupathy,
Excellent HR Services,
Erode.
5th April 2011 From India, Selam

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File Type: pdf APFC, Gurgaon VS G4 Securitas (P unjab & Haryana High Court Order).pdf (47.2 KB, 77 views)

Dear All,
I have also gone through the judgement of Punjab & Haryana High Court in the petition as mentioned by dear Mr. Thakkar between APFC & G4S. But I expect it will be challenged in the Supreme Court. I personally also dont agree with the judgement since there is no criteria of bifurcating the minimum wages as what should be the ratio of basic and other allowances. Let me tell you all that even G4S is going to consider minimum wages as basic wages for PF purpose.
C.B. Sehgal
6th April 2011 From India
YES U R TRUE Mr. Sethupathy,
atleast basic should be 60% of gross in case of min wage, in all other cases, Basic can be between 35-40% of gross package ( and in any case it can not be less than 60% of min wage)
this is general rule which most of the factories follow, but i am looking for judgement on which we can rely upon.
pls. add your comments on this issue!
regards
Manish Gupta
6th April 2011 From India, Mumbai
Subject : Minimum Wages in Uttar Pradesh Pls tell what is the rule in UP. In UP Basic and VDA only considerared for Minimum wages or Gross Salary. i.e Basic, VDA, Allowance etc? regds
7th April 2011 From India, Delhi
Dear All, Mr neeraj is right. because this attract the various social security Act and if not this will not compliances of related Act. Raghu
7th April 2011 From India, Pune
Dear friends can i know what is the recent amendment chainges in minumum wages in kerala state please if you have the details please let me know
8th April 2011 From India, Kochi
Dear Seniors, Thank You very much for your valuable inputs regarding the above subject "Company Structure linked to Minimum Wages". Regards, Kiranikumari
13th April 2011 From India, Bangalore
Dear sir
i am confusion about pf deduction
01/10/2012 to 31/03/2013
shop & establishment (zone-i) ahmedabad
basic- 3762.20
sp. Allo- 1544.40
total - 5306.60
which amt. Will for pf 12% deduction.
Pls told me solution.
Thanks
20th October 2012 From India, Pune
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