Weekly Off Pay Dilemma: Should Employers Cover Statutory Contributions?

Dear Sir,

As per the Factory Act, every worker gets one day of weekly off for every six days of work. The IR team has given an opinion that workers will not be paid the minimum wage for the weekly off. They will only receive statutory contributions like PF, ESIC, EL, and PH based on a 26-day calculation.

Request you to provide your advice on whether the employer's statutory contributions should be paid on the weekly off or not?

As per the Factory Act, every worker gets one day of weekly off after every six days of work. The IR team has provided an opinion that for the weekly off, minimum wage workers will not be paid any employer statutory contributions. They will only receive statutory contributions such as PF, ESIC, EL, and PH based on a 26-day calculation.

I would like to request your advice on whether the employer's statutory contributions should be paid on the weekly off or not?

Wages on Weekly Holidays Under the Factories Act

The Factories Act doesn't provide for wages on weekly holidays. However, for monthly-rated employees, it is covered. Statutory contributions, whether from the employer or employees, need to be paid only on wages paid. If you are not paying wages, there is no liability for contributions.

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