Dear Members,
Please advise on below: We have contract employees under a contractor. One employee is resigning.His Wages is 500/day.we have not shown the break-up as Basic ,DA in the muster roll. We have shown as 500/-only.Now on which amount we should calculate gratuity as Minimum wages is 285.33/only.(Basic +DA) Whether to calculate on 500/- or 285.33/-? Expecting valuable advise.
Regards Nishant

From India, Ahmadabad
Hi Nishant, Greetings of the day!!! Please share on which amount you are Deducting PF & calculated Bonus amount ? and please share where have you derived 285.33 Rs ?
From India, Pune
First you need to finalize break up for his daily wages (Rs.500/-). If the Basic +DA, (which you have finalized) is more than minimum wages, then gratuity is payable as per finalized Basic + DA; else as per minimum wages.
best wishes.

From India, Nasik
Mr. Nishant,
You have clearly mentioned that you retained contract employee on daily rate of Rs.500/- per day without any bifurcations like basic/da or any other component.
As such compliance if any under EPF must have made on the gross wage of Rs.500/- per day and you are liable to pay gratuity on gross amount i.e. Rs.500/- per day and not on minimum wages of Rs.285.33.
P K Sharma

From India, Delhi
Could not understand your query properly please elaborate so as to give appropriate view. You have mentioned that you have contract employees under a contractor so for any statutory the contractor is liable and if defaulted then only the principle employers come into picture secondly whether the employee of the contractor has completed 5 years of continuous service, and that too at your site.
From India, Ahmadabad
Dear Nishanth,
Admittedly what you are paying is consolidated wages and incidentally it is more than the minimum wages comprising of the components of Basic and D.A. Therefore, you have to calculate his gratuity on the basis of consolidated wages only.

From India, Salem

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