It would be better if you answer the following queries:
1) the exact break-up of the Special allowance of Rs.14900-00.
2) Whether the medcl reimbursement is a fixed sum payable every month without bills?
3) Same query in respect of L.T.A
4) Whether Lunch allowance is paid only to SPE'S during tour or always and to all employees in the Company?
5) What is meant by liason allowance?
6) Whether the Personal Allowance is common to all or only for SPEs?
7) Is the monthly bonus paid under the PB Act,1965? or part of the remuneration payable as per the contract of employment?
8) Whether the SPEs are paid the actual travel expenses like bus/train fare, taxi fare and daily allowance for the boarding and lodging separately for the business tours undertaken by them in addition to the monthly conveyance allowance?
9) In case of authorized leave, whether the entire salary is paid or proportionate deductions are made in respect of all the Special Allowances?
Thanks for answering my post.You have asked certain clarifications which are as under-
1.Break up of Special Allowance-
A.Till 1998 all SPE were getting Bonus yealrly afterwards it was converted in Personal allowance of Rs.1250/-/month later on it merged into Special Allowance.
B.Before 2002 Lunch allowance was 400/-/month
E.In the year2015-Medical Allowance-Rs.6600/-/year
F.Good Conduct Allowance-Rs.6000/-/year
2.Before 2015 medical bills submission were mandatory for the claim of medical allowance.
3.For the L.T.A. Claim-Travel tickets were mandatory.
4.Lunch allowance was fixed for all SPE of the Company.
5.Liason Allowance was also fixed for all SPE to enhance sales of the Company by obliging the customers-after 2002 Lunch allowance and Liason allowance was merged with Special Allowance.
6.Conveyance Allowance was separate head later on merge with Special Allowance.
7.Daily Allowance,Ex-Station,Out Station allowances,Travel expenses are paid separately thru Expense Statement on monthly basis which was not having any connection with Monthly Salary.
8.calculation of Priveledge Leave encashment was made on the basis of Basic salary only.
After carefully analyzing the inputs relating to the wage/salary structure furnished in the thread, I think that the queries posted by you initially are -
(1) What is the meaning of the term " wages " as defined under the Payment of Wages Act,1936? and
(2) Whether an employee, particularly, a Sales Promotion Employee so defined under the Sales Promotion Employees (Conditions of Service ) Act,1976, can file a claim against the employer under the P.W Act,1936 for with holding of his salary though his monthly salary exceeds the ceiling prescribed because of the inclusion of certain allowances in the salary/wage structure?
However, sorry to state that your subsequent clarifications seem to increase my confusion only. If the monthly gross salary of Rs.32000-00 comprises of a Basic of Rs.13000-00, HRA of Rs.3900-00 and Spl.Allowances of Rs.14900-00, just I asked you the break-up of the spl.allowances under various heads,if any. Of course though the various heads of allowances are mentioned, your description about their apportionments and merger makes me doubtful whether the particulars are C.T.C based and thus renders my understanding all the more difficult. For instance, you have mentioned that the yearly bonus, monthly allowances of liason, lunch and conveyance allowances were subsequently converted as monthly payable and merged with the monthly Special Allowance while the other allowances of medical, good conduct and leave travel are still yearly payable. Therefore, for all purposes, the monthly Gross salary/wages of an SPE employed in your company comprises of only three components viz., Basic, H.R.A and Special Allowance which works out to Rs.32000-00 as mentioned at the outset.
Whether my presumption is correct?
With regard to Bonus paid monthly, there is again a mis interpretation of law from the employer side. Therefore, if monthly paid, it cannot be treated as Bonus. Again, as per Payment of Bonus Act, an employee whose salary exceeds Rs 21000 is not eligible to get bonus and as such you may not be eligible to get any bonus. But if others who are otherwise eligible to bonus are paid bonus calculated on the basic wages as per your structure, the same should be questioned. If the gross salary is the base for making the employees out of bonus cover, then for calculation of amount of bonus also the same principle should be applied. This should be the base for other statutory payments like payment of gratuity also.
When the issue is something relating to non payment of salary, I think you have other options available in the Sales Promotion Employees (Conditions of Service) Act itself. Since you were not having managerial powers, you can raise it as an industrial dispute.
Madhu T K
At times, it remains unanswereable why the SPEs of a particular Company or their union do not raise any objections when the management unilaterally brings about changes in the structure of their salary though by virtue of S,6 of the SPE Act,1976, the application of the ID Act,1947 to such disputes are made available.
Coming to my response to your comments and my final answer to the poster, let me take some time.