Establishment : In Maharashtra Type : Hotel Resort Question : Is it mandatory to deduct food from salary as per law Burning issue : Net in hand reduces for the employee
From India, Mumbai
From India, Mumbai
I don't know whether hotels,restaurants or any such kind of eateries are covered by the State Shops and Establishments Act or by any special State Law in the State of Maharashtra. But, in TamilNadu, we have a separate enactment entitled " The Tamilnadu Catering Establishments Act,1958 " for the regulation of conditions of work in catering establishments. Under this Act, the term " wages " include, inter alia, food allowance or the cash equivalent of the meals and tiffin supplied to the employees free of charge. The value of free food is determined by the State Government from time to time under rule 35 of the Rules under the Act which ranges from Rs.2.50 to 2.75 per day depending upon the place of the establishment like Dt or taluk head quarters, town panchayats etc. ( I am not aware of revision,if any as of now). If an employer chooses to pay instead of free food, he can do so. Otherwise, deduction of food allowance which is relatively very meagre will not affect the employee's net earnings.
From India, Salem
6016From India, Salem
Please refer to relevant Minimum Wages applicable to Hotel Industry regarding provision of Food Deduction.under The karnataka Minimum Wages applicable for Hotel Industry, there is provision for deduction of 15% of Lowest Minimum Wages applicable to the Zone, if Food is provided during Working Hours.
From India, New Delhi
From India, New Delhi
VR Wealth Advisors
To advice properly the purpose of the question is required. In Maharashtra all the hotels/restaurants are covered under Bombay/Maharashtra Sops & Establishments Act.
So far as I understand you are asking the question with regard to PF/ESI/Bonus.
Please disclose the purpose.
Warm Regards
Bharat Gera
HR Consultant
9322404765
From India, Thane
To advice properly the purpose of the question is required. In Maharashtra all the hotels/restaurants are covered under Bombay/Maharashtra Sops & Establishments Act.
So far as I understand you are asking the question with regard to PF/ESI/Bonus.
Please disclose the purpose.
Warm Regards
Bharat Gera
HR Consultant
9322404765
From India, Thane
Dear Friend,
your question "Is it Mandatory to deduct cost of food from salary otherwise?
No this did not fall under the statutory law like EPF etc...
When you work out salary better a) Make Food is provided to cost? (cost should be worked out)
If the employee did not want to take food bring in home made what would be option?
If the employee want to take food what would be the cost occasionally what would be the cost?
b) What would be accommodation provided to the employee in case they have to stay at the hotel?
For these questions 1) Make food is free and prepare food to the employee in the industry, in case of small industries this is easy and for the big hotels/resorts let them organised, as you can avoid food wastage bringing in all in one umbrella.
2) In case the salary heads worked out, have a ration head/food & beverages/ and amount fixed for monthly as such you may need not to consider providing food to the employee
3) In the industries you can also provide subsidy to the food to certain extent where you can deduct from salary and compensate to the full bill from the organisational account
These are all come under the head Salary and Allowances as an hotel industry, Hospitality is the main category, thus do not expect concrete work sheet. You have to work out with the financial department for providing cost or free food and stick to the industry.
As you think Net Pay will not get affected, as you are going to decide the issue apart from the income.Food Allowance is entirely different from Salary to the employee.
Further, all industrial work are not equal, thus you can frame the issue and solve it.
From India, Arcot
your question "Is it Mandatory to deduct cost of food from salary otherwise?
No this did not fall under the statutory law like EPF etc...
When you work out salary better a) Make Food is provided to cost? (cost should be worked out)
If the employee did not want to take food bring in home made what would be option?
If the employee want to take food what would be the cost occasionally what would be the cost?
b) What would be accommodation provided to the employee in case they have to stay at the hotel?
For these questions 1) Make food is free and prepare food to the employee in the industry, in case of small industries this is easy and for the big hotels/resorts let them organised, as you can avoid food wastage bringing in all in one umbrella.
2) In case the salary heads worked out, have a ration head/food & beverages/ and amount fixed for monthly as such you may need not to consider providing food to the employee
3) In the industries you can also provide subsidy to the food to certain extent where you can deduct from salary and compensate to the full bill from the organisational account
These are all come under the head Salary and Allowances as an hotel industry, Hospitality is the main category, thus do not expect concrete work sheet. You have to work out with the financial department for providing cost or free food and stick to the industry.
As you think Net Pay will not get affected, as you are going to decide the issue apart from the income.Food Allowance is entirely different from Salary to the employee.
Further, all industrial work are not equal, thus you can frame the issue and solve it.
From India, Arcot
Mr Umakanthan
I read your post on Hotel Industry in Tamilnadu Rule 35 specifies Rs 2.75 . I am not very clear about the term Cash Equivalent. Does this mean that an Employer an deduct Rs 2.75 from wages per day if they supply food?
Thanks
T Sivasankaran
From India, Chennai
I read your post on Hotel Industry in Tamilnadu Rule 35 specifies Rs 2.75 . I am not very clear about the term Cash Equivalent. Does this mean that an Employer an deduct Rs 2.75 from wages per day if they supply food?
Thanks
T Sivasankaran
From India, Chennai
Dear Mr.Sivasankaran,
As per Section 2(13-A) of the TN Catering Establishments Act,1958, "wages" means the cash equivalent of the meals and tiffin supplied to the employees free of charge also apart from the basic wages, dearness allowance etc., mentioned therein.
Moreover, G.O(2D)No.35, Labor and Employment (JI) dated 08-07-2014 of the Govt. of TamilNadu fixing minimum wages for employment in Hotels and Restaurants clearly mentions in its Note(2) as follows: " Where free food and tiffin are not supplied to the employees, the employees shall be paid, besides wages specified herein, cash equivalent of food and tiffin @ Rs.46.90 per day for the total no of days worked in the month."
Reading the provision of Sec.2(13-A) conjunctively with the above, it implies that supply of free food to employees is a statutory obligation and the absence of such practice obligates the employer to pay the food allowance as it forms part of the wages payable.
The observation of the Division Bench of the hon'ble Madras High Court in its judgment upholding the inclusion of the food allowance in the computation of gratuity in N.Sivadasan Vs. Appellate Authority under the Payment of Gratuity Act,1972 [ 1997(1)LLJ Page 1155 ] also strengthens the above view point.
Coming to your question on the import of Rule 35 of the TNCE Rules,1959, I wish to correct the portion of my previous reply regarding recovery and state that "the cash equivalent" mentioned therein is for the purpose of payment in lieu of free food and for calculation of leave and terminal benefits.
My sincere thanks to you for having given me the opportunity to correct my previous reply.
From India, Salem
As per Section 2(13-A) of the TN Catering Establishments Act,1958, "wages" means the cash equivalent of the meals and tiffin supplied to the employees free of charge also apart from the basic wages, dearness allowance etc., mentioned therein.
Moreover, G.O(2D)No.35, Labor and Employment (JI) dated 08-07-2014 of the Govt. of TamilNadu fixing minimum wages for employment in Hotels and Restaurants clearly mentions in its Note(2) as follows: " Where free food and tiffin are not supplied to the employees, the employees shall be paid, besides wages specified herein, cash equivalent of food and tiffin @ Rs.46.90 per day for the total no of days worked in the month."
Reading the provision of Sec.2(13-A) conjunctively with the above, it implies that supply of free food to employees is a statutory obligation and the absence of such practice obligates the employer to pay the food allowance as it forms part of the wages payable.
The observation of the Division Bench of the hon'ble Madras High Court in its judgment upholding the inclusion of the food allowance in the computation of gratuity in N.Sivadasan Vs. Appellate Authority under the Payment of Gratuity Act,1972 [ 1997(1)LLJ Page 1155 ] also strengthens the above view point.
Coming to your question on the import of Rule 35 of the TNCE Rules,1959, I wish to correct the portion of my previous reply regarding recovery and state that "the cash equivalent" mentioned therein is for the purpose of payment in lieu of free food and for calculation of leave and terminal benefits.
My sincere thanks to you for having given me the opportunity to correct my previous reply.
From India, Salem
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