Hiring Daily Wage Workers in Manufacturing: Do We Need to Cover PF and Minimum Wages?

Can anyone tell me if we hire daily wage workers for a 15-day period in a manufacturing industry, do we have to cover them under the P.F. Act, or can we book their wage expenses? Are we required to pay them minimum wages?

Thanks & Regards,
Manish Sharma

Dear Manish,

If your employment is included in the list of scheduled employments by the State Government under the Minimum Wages Act, 1948, then you are required to provide minimum wages to the employed persons, including daily wagers.

Regards,
R.N. Khola

If your organization is covered under the Minimum Wages Act and also covered under the PF Act, then you must deduct PF.

Regards

Thank you, sir, for your valuable answer. I am still confused about PF deductions. The organization is covered under the PF Act. Is it correct to deduct PF for only 15 days? (We have to fulfill all formalities regarding PF, e.g., allotment of PF code to Daily Wager, etc.)

Thanks & Regards,
Manish

Dear All,

Factory Registration Requirements

First, your factory must be registered as per the Factories Act norms. There must be more than 20 persons working in your organization on at least one day in the preceding financial year.

Eligibility for Provident Fund

As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, the person should have worked for at least 30 days (working days only, not off days) to be eligible. He should not be covered under the Apprentice Act of 1961. Only then will the Basic and DA salary be calculated for that employee; otherwise, no.

Regards,
Rishpal (HR Manager)