As you are well aware about the huge MW hike in Delhi, subsequent court verdict and revised MW issued by the Delhi Govt wef 01st Oct'2018. I deal with huge manpower cost all over India (through various sub-contracts and outsourced agencies). The Third Party provide the services on basis of fixed Service Charge on the monthly actual CTC. Delhi Region Projects have huge manpower cost (due to the revision). Before I put my query I would like to share the step by step points:-
1 The Delhi Govt has declared notification for interim MW Revision wef 03.03.2017 with huge hike of 37%.
2 The revision has been challenged by many Associations and Hon’ble HC put “STAY” on the revision in respect of the members of the Associations. The Associations submitted that the Advisory Committee has not followed the proper process and it is contravention of principles of Natural Justice. But the Delhi Govt implemented the rates for the establishments who are working in associations with the various divisions of Delhi Govt.
3 The rate (revised vide notification dated 03rd Mar’2017) has been quashed by the Hon’ble HC vide order dated 04th Aug’18 and than previous rate become applicable.
4 The HC decision declared on 04th Aug. 2018, meanwhile the Delhi Govt Labour Office has issued two more notifications (being implemented wef 01.04.17 and 01.04.18).
5 After the HC verdict many establishments / employers switched the wages which were applicable prior to 03rd Mar’2017, even ignored the notifications of 01.04.17 and 01.04.18.
6 Though the Delhi Govt has put the case in Supreme Court which is under hearing and final decision is awaited.
7 Meanwhile to make it more clear the Labour Off., Delhi Govt has issued another MW notification wherein the impact of “Interim Rate Revision Notification of 03rd Mar’17” has been removed. They considered the rates which were applicable prior to 03.03.2017 and added the impact of two notifications (being implemented wef 01.04.17, and 01.04.18, .
Now my main concern is whether we can reduce the Basic Wages for PF, ESI and Bonus calculation. Coz we have been paying the Basic as per MW Act Notification. Now the Appropriate Govt itself has issued revised MW Notification with reduced Basic wages. As per Payment Of Wages Act, we can’t reduce employee salary, but can we reduce the Basic wages? So that statutory cost can be reduced.
I need expert opinion and advice on the matter, pls help me. 25th October 2018 From India, Delhi