Understanding Sikkim's Minimum Wages: How Should We Calculate EPF and Allowances?

Sikkim Minimum Wages Act

Is the minimum wage defined as (Basic + DA) or Basic + DA + other allowances? If an employee's gross salary is less than Rs. 15,000.00, is EPF calculated on (Basic + DA) or the gross salary?

Need your advice on the aforesaid matter.

What is the Sikkim Minimum Wages Act at present?

Does minimum wages mean (Basic + DA) or (Basic + DA + other allowances)? If an employee's gross salary is less than Rs. 15,000.00, is EPF calculated on (Basic + DA) or gross salary?

Your prompt reply will be highly appreciated.

Gross monthly average wages, excluding overtime payment, are to be defined as wages. EPF contribution is payable on Basic + DA, i.e., gross wages less (HRA + conveyance), and the EPF wages should not be lower than 50% of the gross salary. In the case of consolidated wages, EPF is payable on gross wages.

Division of Sikkim Minimum Wages

Can we divide the Sikkim minimum wages amount of Rs 10,950.00 per month for skilled employees in the following way? Is it legal?

- Basic: Rs 2,600.00
- HRA: Rs 1,800.00
- SBCA: Rs 1,300.00
- Medical: Rs 1,800.00
- Seniority: Rs 1,200.00
- Performance: Rs 2,250.00

Total: Rs 10,950.00 per month

Your prompt reply will be appreciated.

Sikkim Minimum Wages for the Engineering Industry

As per Sikkim Minimum Wages, the minimum wages consist of Basic & DA. For the skilled level, the minimum wages as per the latest circular for the Engineering Industry are INR 335 per day, i.e., 335 x 26 = INR 8710 per month. The rest of the amount will be provided as other allowances.

S K Bandyopadhyay (Howrah, WB)

Application of Labor Laws to Schools in Sikkim

In Sikkim, do schools come under the Shop and Establishments Act? Does the Minimum Wages Act, PF, ESIC, and Gratuity Act also apply to schools?

Your advice is needed in the aforementioned matter.