Determination of wages as per wage code is one thing and contribution to PF & ESI are different things. Once wages has been determined combining Basic, DA and Allowances , the contribution of PF & ESI will be same as at present i.e. PF will be on wages only and ESI on monthly gross. As per social security code PF contribution will be 10% instead of 12% at present.
S K Bandyopadhyay ( WB, Howrah)
CEO - USD HR Solutions
From India, New Delhi
334S K Bandyopadhyay ( WB, Howrah)
CEO - USD HR Solutions
From India, New Delhi
S K Bandyopadhyay Thanks for your reply and initiation in this regard? Over a period once effective date is announced discussions takes in full swing. Thank you. Ram K Navaratna
From India, Bangalore
From India, Bangalore
As per definition of Wages under Wage Code , it has not been mentioned that wages should be 50% of CTC. It should be 50% of all the remuneration calculated under this clause which is not CTC.
In the first part of the wages definition the inclusion items are all remunerations whether by way of salaries, allowances or otherwise, expressed in terms of money ............ be payable to a person .............. and includes Basic, DA & RA.
Usually in CTC all the items spent for any employee is considered - Employer contribution to ESIC, Gratuity, Insurance premium etc.etc. random vary from organizations to organizations should not be considered for all the remuneration calculated under the wage clause as those items are not payable to the person.
It will be required to determine carefully the items to be considered for calculation.
S K Bandyopadhyay( WB, HOWRAH)
CEO-USD HR Solutions
+ 91 98310 81531
From India, New Delhi
In the first part of the wages definition the inclusion items are all remunerations whether by way of salaries, allowances or otherwise, expressed in terms of money ............ be payable to a person .............. and includes Basic, DA & RA.
Usually in CTC all the items spent for any employee is considered - Employer contribution to ESIC, Gratuity, Insurance premium etc.etc. random vary from organizations to organizations should not be considered for all the remuneration calculated under the wage clause as those items are not payable to the person.
It will be required to determine carefully the items to be considered for calculation.
S K Bandyopadhyay( WB, HOWRAH)
CEO-USD HR Solutions
+ 91 98310 81531
From India, New Delhi
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Minimum Wage of UP & UK.pdf