This is to all the Senior HRs, My organization is in a dicey situation. We are based out of Gujarat and have employed some of our workers in the same state but for a different company working in oil fields.
Recently, we were asked by pur client to adjust the wages of employee as per central new wage for semi skilled (557/day) but Guj state has lower wage of 371/day.
Now 557*26 = rs. 14482 has to be the basic salary per month right?
And subsequently there are going to be pf and esic burden.
Can someone explain if we can just have Basic or Basic+Da = 14482 as a component in salary structure and nothing else.
This way we can save some cost. OR having HRA and all the components necessary?
Additionally is the client right to ask for such central wages to be applied in this case
From India, Ahmedabad
Recently, we were asked by pur client to adjust the wages of employee as per central new wage for semi skilled (557/day) but Guj state has lower wage of 371/day.
Now 557*26 = rs. 14482 has to be the basic salary per month right?
And subsequently there are going to be pf and esic burden.
Can someone explain if we can just have Basic or Basic+Da = 14482 as a component in salary structure and nothing else.
This way we can save some cost. OR having HRA and all the components necessary?
Additionally is the client right to ask for such central wages to be applied in this case
From India, Ahmedabad
Dear friend,
Since the subject-matter of 'LABOR' is placed under the Concurrent List of the Constitution of India, both the Central and State Governments are empowered to legislate laws in the matter. Therefore, certain Central labor laws like the Industrial Disputes Act,1947, Minimum Wages Act,1948, Contract Labor (Regulation and Abolition ) Act,1970 have the concept of "appropriate Government" incorporated into them by means of which both the Central and State Governments are enabled to administer such laws exclusively within their respective jurisdictions. Therefore, first one has to ascertain which is the appropriate Government for one's industrial activity or establishment with reference to the nature of activity undertaken. In this connection, you may refer to section 2 (b) of the MW Act,1948 which defines the term "appropriate Government" for the purposes of the Act.
Since employment in oilfield comes under the purview of the Central Government, Central Government is the appropriate Government in respect of the same. Therefore, your employees deputed to work there on whatever basis should be paid the minimum rates of wages fixed by the Central Government.
From India, Salem
6016Since the subject-matter of 'LABOR' is placed under the Concurrent List of the Constitution of India, both the Central and State Governments are empowered to legislate laws in the matter. Therefore, certain Central labor laws like the Industrial Disputes Act,1947, Minimum Wages Act,1948, Contract Labor (Regulation and Abolition ) Act,1970 have the concept of "appropriate Government" incorporated into them by means of which both the Central and State Governments are enabled to administer such laws exclusively within their respective jurisdictions. Therefore, first one has to ascertain which is the appropriate Government for one's industrial activity or establishment with reference to the nature of activity undertaken. In this connection, you may refer to section 2 (b) of the MW Act,1948 which defines the term "appropriate Government" for the purposes of the Act.
Since employment in oilfield comes under the purview of the Central Government, Central Government is the appropriate Government in respect of the same. Therefore, your employees deputed to work there on whatever basis should be paid the minimum rates of wages fixed by the Central Government.
From India, Salem
Can someone here guide me here with the best possible Salary structure with basic as 14482.
Since basic is already on the higher side as per the organisation. Is HRA and other components required.
Or we can simply have basic and pay pf and esi and be compliant
From India, Ahmedabad
Since basic is already on the higher side as per the organisation. Is HRA and other components required.
Or we can simply have basic and pay pf and esi and be compliant
From India, Ahmedabad
So long as the total wages are exceeding the notified minimum wages (of the Central Govt. in this case) the break up does not matter. As a matter of principle, don't tinker with the wage pattern lest it creates apprehension/suspicion in the workmen's minds.
From India, Mumbai
From India, Mumbai
In the case of scheduled employment under the MW Act,1948, it is imperative to consider the componential structure and the gross wages as well of the statutory minimum rates while deciding the industry wages as well as its components. If the industry wages comprises of more components, only those components falling within the inclusive part of the definition of the term ' wages ' under the MW Act,1948 should be taken into account for the purpose of determining parity between the industry wages and the statutory minimum wages. In such an exercise, it is to be kept in mind the periodical increase in the minimum wages due to the linkage of the dearness allowance to some cost of living index or the other.
Hence let the poster decide on his own with reference to the salary structure of his industry wages vis -a- vis the applicable minimum rate of wages.
From India, Salem
Hence let the poster decide on his own with reference to the salary structure of his industry wages vis -a- vis the applicable minimum rate of wages.
From India, Salem
So far my knowledge goes Gujrat has State House Rent Allowance Act which is 5% of the Basic and DA. Please check and if necessary implement the same.
To avoid 6 monthly review as per minimum wages act, fix the remuneration 10% more than the existing MW and review yearly with increment just not considering minimum wages. This will help to minimize to some extend remuneration related grievance.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
To avoid 6 monthly review as per minimum wages act, fix the remuneration 10% more than the existing MW and review yearly with increment just not considering minimum wages. This will help to minimize to some extend remuneration related grievance.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Minimum Wage of UP & UK.pdf