Compliance in opening a branch office in a different state

mohamed-ijaz
Dear All,

I have a Pvt Ltd company in Bangalore and now going to open a branch office in Tamil Nadu. I have a few queries on the following items

1. Minumum Wages - To be followed as per Tamil Nadu where branch office I am going to open or Karnataka wages act since the head office is in Bangalore
2. ESIC - To be paid in Tamil Nadu or in Karnataka
drsivaglobalhr
Dear Colleague,
You have a Pvt Ltd company in Bangalore and now propose to open a Branch Office in Tamil Nadu.
In this scenario :

1. Your doubt is on Minimum Wages - whether to follow as per Tamil Nadu or Karnataka wages: The Minimum Wages is a Wages that is applicable for Scheduled employment (scheduled employment is list of employment notified by Government under Minimum Wages Act) by State Government or Central Government) The wages are fixed by respective State Government for the employments and the Dearness Allowance is based on the cost of living index of the region/ location. Hence for your Karnataka Employees you need to pay the Minimum Wages as fixed by the Karnataka State Govt. For the New Brach you propose to open in Tamil Nadu, you need to pay the Tamil Nadu Government fixed Minimum Wages.


2. ESIC - To be paid in Tamil Nadu or in Karnataka : ESI is a Central Act and you can very well remit the ESI contribution in your main code number and the Employees can be attached to the nearest dispensaries and local office in Tamil Nadu and Karnataka respectively. You need not get sub-code for now until you have substantially increased manpower in your branch office for the reasons of ease of administration.
rkn61
Please find the below answers:-

1- Minimum Wages - Though the company's Head Qtrs is situated in Bangalore, Karnataka, your branch opened in Tamil Nadu, needs to follow Tamil Nadu Minimum Wages.

2. ESI - you need to get a sub-code, as the new location is in different place from home location.
Please also peruse the following link, to get an understanding about the process.

https://www.citehr.com/123000-esic-s...-creating.html

3. For Professional Tax also, I think you have to follow TN rules for Tamil Nadu location
apprentice-program
Dear Mohamed,

The following acts are applicable on your company.

1. PF Act - all compliance under PF act and PF contribution will be 25% of salary.
2. ESI Act - Follow all compliance and 4 % of salary contribution.
3. Bonus Act. - 8.33% of annual salary , records and return
4. Minimum wages- As per state
5. Gratuity Act - Should have at least 5 years of experience
6. Payment of wages
7. Maternity act.
8. If you want to get exemption from above compliance you may follow these compliances https://docs.google.com/document/d/1...it?usp=sharing
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