In the restaurant industry, we need to hire staff for lower levels, such as housekeeping staff, where turnover is very high. Can we hire this staff as casual employees? Employees are not ready for deductions of ESI & PF as they receive very low salaries; some of them even fall below minimum wage. Please advise on how to handle this issue.
From India, Delhi
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From India, Delhi
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You have to pay at least the minimum rates of wages fixed by the government. As said by the Supreme Court of India, no company has the right to exist unless it pays at least the minimum rates of wages. It is not the PF or ESI deduction that creates high attrition but the rates of wages offered. When you start thinking that they are an indispensable part of your industry without whom you cannot function at all and when you start paying them a good salary, you will find that the attrition has come down. So, please increase their salary and then deduct the social security contributions; you will get a result.
Regards,
Madhu.T.K
From India, Kannur
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4526Regards,
Madhu.T.K
From India, Kannur
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Minimum Wage of UP & UK.pdf