Dear Seniors,
We are searching for some good security services. This is the quotation which I received from one of the security services. I have certain doubts kindly help me out:
1. What is the minimum wage to be given in H.P. according to the Factories Act?
2. PF is charged at 13.61%, but I think it should be 12%.
3. ESI is 4.75%, which I think is correct as the employer's share.
4. Do we need to pay relieving charges of 16.66% to them?
5. Admin charges and service charges are added twice, aren't they the same?
If there are any other comments, kindly let me know. The file is attached for review. I am waiting for all your valuable responses. I need to close the issue today.
Thanks in Advance.
Regards,
Shweta Swarnkar
From India
Acknowledge(0)
Amend(0)
14We are searching for some good security services. This is the quotation which I received from one of the security services. I have certain doubts kindly help me out:
1. What is the minimum wage to be given in H.P. according to the Factories Act?
2. PF is charged at 13.61%, but I think it should be 12%.
3. ESI is 4.75%, which I think is correct as the employer's share.
4. Do we need to pay relieving charges of 16.66% to them?
5. Admin charges and service charges are added twice, aren't they the same?
If there are any other comments, kindly let me know. The file is attached for review. I am waiting for all your valuable responses. I need to close the issue today.
Thanks in Advance.
Regards,
Shweta Swarnkar
From India
Acknowledge(0)Amend(0)
Click on the link below to access information about the minimum wage:
https://www.citehr.com/download-list...y=minimum+wage
You will find some useful information on the topic.
From India, Coimbatore
Acknowledge(0)Amend(0)
https://www.citehr.com/download-list...y=minimum+wage
You will find some useful information on the topic.
From India, Coimbatore
Acknowledge(0)Amend(0)
Hi,
Please find the following clarifications:
1. Minimum wages are to be paid according to the State Minimum Wages, which falls under the Minimum Wages Act. State Minimum Wages mention wages for skilled, semi-skilled, and unskilled categories of employees. You can obtain this information from the Labour Department.
2. PF: 13.61% means 12% PF + 1.61% Administrative Charges.
3. ESI contribution is 4.75% (Employers' Contribution) and 1.75% Employees' Contribution. You are correct in this regard. The wage ceiling for ESI is now 10,000/- per month.
4. Admin Charges and Service Charges: Service Charges refer to the profit of a contractor, which you can negotiate. I am unclear about Admin Charges.
5. Relieving Charges have to be paid.
Thank you.
Acknowledge(0)Amend(0)
Please find the following clarifications:
1. Minimum wages are to be paid according to the State Minimum Wages, which falls under the Minimum Wages Act. State Minimum Wages mention wages for skilled, semi-skilled, and unskilled categories of employees. You can obtain this information from the Labour Department.
2. PF: 13.61% means 12% PF + 1.61% Administrative Charges.
3. ESI contribution is 4.75% (Employers' Contribution) and 1.75% Employees' Contribution. You are correct in this regard. The wage ceiling for ESI is now 10,000/- per month.
4. Admin Charges and Service Charges: Service Charges refer to the profit of a contractor, which you can negotiate. I am unclear about Admin Charges.
5. Relieving Charges have to be paid.
Thank you.
Acknowledge(0)Amend(0)
You must buy the Minimum Wages Act applicable in Himachal Pradesh. PF is 12% + 1.10% admin charge + 0.5% (if not covered with LIC for EDLI), and the remaining admin charges are under EDLI. Please visit epfindia.com for further clarification on P.F.
Neeraj
From India, Madras
Acknowledge(0)Amend(0)
Neeraj
From India, Madras
Acknowledge(0)Amend(0)
Dear member,
I agree with Vedalia. Moreover, I would like to state that the statutory laws applicable to your factory should also be adhered to by the contractor. For example, leave wages are to be paid, and a bonus of 8.33% should be paid as well. Whether you reimburse them is a different question.
I have observed that most security contracts do not consider these aspects. The assumption made is that it is a job contract. Additionally, some security contracts operate on a 12-hour basis. The extra 4 hours should be treated as double Overtime, but only a single wage is considered.
Acknowledge(0)Amend(0)
I agree with Vedalia. Moreover, I would like to state that the statutory laws applicable to your factory should also be adhered to by the contractor. For example, leave wages are to be paid, and a bonus of 8.33% should be paid as well. Whether you reimburse them is a different question.
I have observed that most security contracts do not consider these aspects. The assumption made is that it is a job contract. Additionally, some security contracts operate on a 12-hour basis. The extra 4 hours should be treated as double Overtime, but only a single wage is considered.
Acknowledge(0)Amend(0)
Hii i would like to conform that Bonus is to be paid at 8.33%of the Basic Salary and it is to be paid after every yr.mostly on Diwali.pls clarify this point of mine. Akshita
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
Please go ahead with CMS Securitas Ltd, a company with PAN India presence.
EAST OR WEST, CMS Securitas Ltd is the Best. Visit www.cmssececuritas.com for more information.
Regards,
Deepak Srivastava
CMS Securitas Ltd
Kanpur, Uttar Pradesh
From India, Calcutta
Acknowledge(0)Amend(0)
EAST OR WEST, CMS Securitas Ltd is the Best. Visit www.cmssececuritas.com for more information.
Regards,
Deepak Srivastava
CMS Securitas Ltd
Kanpur, Uttar Pradesh
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Shweta,
I have seen the quotation which you have attached here. I would say everything is okay, the vendor has given you a minimum quote, and he has fulfilled the statutory compliances, which is a very good thing.
Regards,
Jagdish Pathak
From India, Gurgaon
Acknowledge(0)Amend(0)
I have seen the quotation which you have attached here. I would say everything is okay, the vendor has given you a minimum quote, and he has fulfilled the statutory compliances, which is a very good thing.
Regards,
Jagdish Pathak
From India, Gurgaon
Acknowledge(0)Amend(0)
Minimum wages in Himachal are Rs. 5100 for unskilled, Rs. 5354.10 for semi-skilled, and Rs. 6425.10 for skilled labor. This rate will be revised next month.
ESI - 1.75% of gross salary contribution by the employee and 4.75% of gross salary contribution by the employer. PF - 12% of basic salary contribution by the employer and 1.61% of basic salary as a contribution for administrative charges by the employer.
The salary slab is for 8 hours and for 26 days. Relieving charges of 4 days would be 16.66% of Gross salary. For 12 hours, add an additional 50% of the salary.
From India, Ludhiana
Acknowledge(0)Amend(0)
ESI - 1.75% of gross salary contribution by the employee and 4.75% of gross salary contribution by the employer. PF - 12% of basic salary contribution by the employer and 1.61% of basic salary as a contribution for administrative charges by the employer.
The salary slab is for 8 hours and for 26 days. Relieving charges of 4 days would be 16.66% of Gross salary. For 12 hours, add an additional 50% of the salary.
From India, Ludhiana
Acknowledge(0)Amend(0)
Dear Ms. Shweta,
I went through your thread. I hope you have found the answers to your questions. Admin charges are mandatory to be paid. Relieving charges are 16.67% if rounded off. The PF percentage has been revised by the government, i.e., 13.36% employer's and 12% employee's contribution.
Further, I would like to tell you that I work in a security organization, i.e., "Secured Security Solutions." It has its presence all around India. If there is any other contract or query, do email me at randeep.sharma@securedsecuritysolutions.com
Thanks and Regards.
From India, Delhi
Acknowledge(0)Amend(0)
I went through your thread. I hope you have found the answers to your questions. Admin charges are mandatory to be paid. Relieving charges are 16.67% if rounded off. The PF percentage has been revised by the government, i.e., 13.36% employer's and 12% employee's contribution.
Further, I would like to tell you that I work in a security organization, i.e., "Secured Security Solutions." It has its presence all around India. If there is any other contract or query, do email me at randeep.sharma@securedsecuritysolutions.com
Thanks and Regards.
From India, Delhi
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
A P LATEST MINIMUM WAGES FOR SECURITY SERVICES UP TO 31-03-2020 (2).pdf
Security services wage structure.xls