Dear all HR professionals,
Can we bifurcate minimum wages into different components such as HRA, Conveyance Allowance, Medical Allowance, etc.? What will be the applicability of the Maharashtra House Rent Act?
The above query pertains specifically to the State of Maharashtra and the recent notification regarding the increase in the minimum rate of wages in certain Scheduled industries.
Regards.
From India, Nasik
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8Can we bifurcate minimum wages into different components such as HRA, Conveyance Allowance, Medical Allowance, etc.? What will be the applicability of the Maharashtra House Rent Act?
The above query pertains specifically to the State of Maharashtra and the recent notification regarding the increase in the minimum rate of wages in certain Scheduled industries.
Regards.
From India, Nasik
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Hello,
The answer to your query is YES! If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have it, please communicate your fax number, and I could fax it to you.
But remember, the judgment does not sit well with Inspecting Authorities as many of them like to play GOD with workmen by labeling the Minimum Rate of Wages as the "Basic Salary" and the Special Allowance as the "Dearness Allowance," virtually forcing the employer to pay PF, Gratuity, and Bonus on a higher quantum. One needs to be skillful in fending off such authorities if they happen to harass you.
In my line of work, I have helped many employers implement their own wage structures without many problems. But what is life without problems?
If you have more questions, feel free to ask!
Regards,
Samvedan
September 8, 2007
From India, Pune
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The answer to your query is YES! If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have it, please communicate your fax number, and I could fax it to you.
But remember, the judgment does not sit well with Inspecting Authorities as many of them like to play GOD with workmen by labeling the Minimum Rate of Wages as the "Basic Salary" and the Special Allowance as the "Dearness Allowance," virtually forcing the employer to pay PF, Gratuity, and Bonus on a higher quantum. One needs to be skillful in fending off such authorities if they happen to harass you.
In my line of work, I have helped many employers implement their own wage structures without many problems. But what is life without problems?
If you have more questions, feel free to ask!
Regards,
Samvedan
September 8, 2007
From India, Pune
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Hi Samvedan,
I think you have deep knowledge in the HR field. I am also working in the HR department, but I am a fresher, and every day I encounter a new query in my work. If you do not have any problem, can I ask you my query by email? Please tell me about yourself.
Regards,
Vrusha
From India, Chakan
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I think you have deep knowledge in the HR field. I am also working in the HR department, but I am a fresher, and every day I encounter a new query in my work. If you do not have any problem, can I ask you my query by email? Please tell me about yourself.
Regards,
Vrusha
From India, Chakan
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Dear Samvedan,
Thank you for replying to my query so promptly. I have a copy of the judgment. I only disagree on PF, gratuity, and bonus issues as all these components are governed by different acts. The definition of minimum wage also doesn't support the above components.
Regards
From India, Nasik
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Thank you for replying to my query so promptly. I have a copy of the judgment. I only disagree on PF, gratuity, and bonus issues as all these components are governed by different acts. The definition of minimum wage also doesn't support the above components.
Regards
From India, Nasik
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Hello Mr. Wankhede,
Your disagreement with what I said about PF, Gratuity, and Bonus is NOT understood. I have known since the beginning that these are independent legislations.
If the SMW (Min Rates of Wages + Special Allowance) is given the status of (Basic salary + Dearness Allowance), then you would be using the base of (Min Rates of Wages + Special Allowance) for PF, Gratuity, and Bonus purposes. BUT, if you develop an independent structure of wages for your company where the (Basic + D.A.) component is lesser than the (Min Rates of Wages + Special Allowance), then you will be paying much less by way of PF and the allied dues.
I hope I am clear. I wish you had considered the matter before disagreeing as you would have landed the answer yourself!! And if you have the said judgment, the issue should have been clear at the outset. Or do you have any other queries that you have not raised?
Regards,
Samvedan
September 8, 2007
From India, Pune
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Your disagreement with what I said about PF, Gratuity, and Bonus is NOT understood. I have known since the beginning that these are independent legislations.
If the SMW (Min Rates of Wages + Special Allowance) is given the status of (Basic salary + Dearness Allowance), then you would be using the base of (Min Rates of Wages + Special Allowance) for PF, Gratuity, and Bonus purposes. BUT, if you develop an independent structure of wages for your company where the (Basic + D.A.) component is lesser than the (Min Rates of Wages + Special Allowance), then you will be paying much less by way of PF and the allied dues.
I hope I am clear. I wish you had considered the matter before disagreeing as you would have landed the answer yourself!! And if you have the said judgment, the issue should have been clear at the outset. Or do you have any other queries that you have not raised?
Regards,
Samvedan
September 8, 2007
From India, Pune
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Hi Samvedan,
I am in agreement with you. All labor laws have been independent. Your (basic + DA / Sp. All) should be at par with the minimum wage applicable. If you are going to adopt your own structure, then you have to prove that the wage/salary you are paying to your employees is more than the minimum wage prevailing in your industry and area.
Regards,
Dharmendra
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I am in agreement with you. All labor laws have been independent. Your (basic + DA / Sp. All) should be at par with the minimum wage applicable. If you are going to adopt your own structure, then you have to prove that the wage/salary you are paying to your employees is more than the minimum wage prevailing in your industry and area.
Regards,
Dharmendra
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Dear Samvedan,
I'll be obliged if you could email the Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka to me. I need it to address an urgent issue. My email address is truptiragarwal@gmail.com.
Regards,
Trupti
From India, Mumbai
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I'll be obliged if you could email the Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka to me. I need it to address an urgent issue. My email address is truptiragarwal@gmail.com.
Regards,
Trupti
From India, Mumbai
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Hello,
Regrettably, I do not have a soft copy of the said judgment, but I can mail a hard copy to whatever address you provide. Alternatively, just check with the company advocate, and he will be able to give you a hard copy anyway! Let me know what you desire!
Regards,
Samvedan
March 27, 2008
From India, Pune
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Regrettably, I do not have a soft copy of the said judgment, but I can mail a hard copy to whatever address you provide. Alternatively, just check with the company advocate, and he will be able to give you a hard copy anyway! Let me know what you desire!
Regards,
Samvedan
March 27, 2008
From India, Pune
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Dear Friends,
If we read paragraph 19 of the said judgment, it reads as follows:
"The idea of fixing such wage in the light of the cost of living at a particular juncture of time and of neutralizing the rising prices of essential commodities by linking up scales of minimum wages with the cost of living index is provided for in Section 4 but VDA is part and parcel of wages. Once rates of minimum wages are prescribed under the Act, whether as all-inclusive under Section 4(1)(iii) or by combining basic plus dearness allowance under Section 4(1)(i), they are not amenable to split up. It is one pay package. Neither the scheme nor any provision of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same."
It may please be noted that the definition of wages under the Act never says that the minimum wages can be bifurcated under various heads.
Regards,
samvedan
Hello,
The answer to your query is YES!
If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have it, please communicate your fax number, and I could fax it to you.
But remember, the judgment does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling the Minimum Rate of Wages the "Basic Salary" and the Special Allowance the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity, and Bonus on a higher quantum.
One has to be skillful in warding off such authorities if they happen to harass you.
In my line of work, I have helped many employers implement their own structure of wages without many problems. But what is life without problems?
If you have more questions, ask!
Regards,
samvedan
September 8, 2007
From India, Vadodara
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If we read paragraph 19 of the said judgment, it reads as follows:
"The idea of fixing such wage in the light of the cost of living at a particular juncture of time and of neutralizing the rising prices of essential commodities by linking up scales of minimum wages with the cost of living index is provided for in Section 4 but VDA is part and parcel of wages. Once rates of minimum wages are prescribed under the Act, whether as all-inclusive under Section 4(1)(iii) or by combining basic plus dearness allowance under Section 4(1)(i), they are not amenable to split up. It is one pay package. Neither the scheme nor any provision of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same."
It may please be noted that the definition of wages under the Act never says that the minimum wages can be bifurcated under various heads.
Regards,
samvedan
Hello,
The answer to your query is YES!
If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have it, please communicate your fax number, and I could fax it to you.
But remember, the judgment does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling the Minimum Rate of Wages the "Basic Salary" and the Special Allowance the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity, and Bonus on a higher quantum.
One has to be skillful in warding off such authorities if they happen to harass you.
In my line of work, I have helped many employers implement their own structure of wages without many problems. But what is life without problems?
If you have more questions, ask!
Regards,
samvedan
September 8, 2007
From India, Vadodara
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Dear Sir,
I am Vivek, working in a company. I am also a fresher, so I can't understand the labor act. My company is an electricity power plant. What should I pay the labor, and which act should we use?
Thanking you,
Vivek Sharma
From India, Indore
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I am Vivek, working in a company. I am also a fresher, so I can't understand the labor act. My company is an electricity power plant. What should I pay the labor, and which act should we use?
Thanking you,
Vivek Sharma
From India, Indore
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Dear All,
Please let me know what components we need to consider while fulfilling the criteria of Minimum Wages. Is it:
- Minimum Wages = Basic Wages + Special Allowance + 5% HRA
or
- Minimum Wages = Basic Wages + Special Allowance?
If a company has its own Apprentice/Training Program lasting 3 years and intends to provide 75% of Minimum Wages as Stipend/Training Allowance, then what components should we take into account:
- 75% of Minimum Wages = Basic Wages + Special Allowance + 5% HRA
or
- 75% of Minimum Wages = Basic Wages + Special Allowance?
Awaiting your prompt reply.
Regards,
Avinash K.
From India, Mumbai
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Please let me know what components we need to consider while fulfilling the criteria of Minimum Wages. Is it:
- Minimum Wages = Basic Wages + Special Allowance + 5% HRA
or
- Minimum Wages = Basic Wages + Special Allowance?
If a company has its own Apprentice/Training Program lasting 3 years and intends to provide 75% of Minimum Wages as Stipend/Training Allowance, then what components should we take into account:
- 75% of Minimum Wages = Basic Wages + Special Allowance + 5% HRA
or
- 75% of Minimum Wages = Basic Wages + Special Allowance?
Awaiting your prompt reply.
Regards,
Avinash K.
From India, Mumbai
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Dear Samvedan,
I really appreciate your comments on the same. If you can send the copy of the judgment to me by mail (Scanned copy) or Fax the same on 022-2206 4170. Please quote "Kind attention Mr. Ajit/Mr. Sujit". I will be obliged to you if you can provide your contact details for further correspondence. My contact e-Mail id is: sujit.s@alliedindia.com. Waiting for your kind response and revert. Thanks with regards, Sujit.
Hello,
The answer to your query is YES! If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have, please communicate your fax number, and I could fax it to you. But remember, the judgment does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling Minimum Rate of Wages to be the "Basic Salary" and the Special Allowance to be the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity, and Bonus on a higher quantum. One has to be skillful in warding off such authorities if they happen to harass you. In my line of work, I have got many employers to implement their structure of wages without many problems. But what is life without problems? If you have more questions, ask! Regards, samvedan, September 8, 2007.
From India, Gandhinagar
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I really appreciate your comments on the same. If you can send the copy of the judgment to me by mail (Scanned copy) or Fax the same on 022-2206 4170. Please quote "Kind attention Mr. Ajit/Mr. Sujit". I will be obliged to you if you can provide your contact details for further correspondence. My contact e-Mail id is: sujit.s@alliedindia.com. Waiting for your kind response and revert. Thanks with regards, Sujit.
Hello,
The answer to your query is YES! If you kindly get hold of a Supreme Court judgment (1999 II CLR 537) Airfreight Ltd. v State of Karnataka, the issue will be clear. Your labor advisor should have the judgment with him. In case he does not have, please communicate your fax number, and I could fax it to you. But remember, the judgment does not go too well with Inspecting Authorities as many of them like to play GOD to workmen by calling Minimum Rate of Wages to be the "Basic Salary" and the Special Allowance to be the "Dearness Allowance" and virtually force the employer to pay PF, Gratuity, and Bonus on a higher quantum. One has to be skillful in warding off such authorities if they happen to harass you. In my line of work, I have got many employers to implement their structure of wages without many problems. But what is life without problems? If you have more questions, ask! Regards, samvedan, September 8, 2007.
From India, Gandhinagar
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Dear Minimum Wages Seeker,
Appended statement is the Current Minimum Wages of S & E - Maharashtra.
SHOP AND COMMERCIAL ESTABLISHMENTS (Maharashtra) FOR THE PERIOD 01/01/2009 TO 30/06/2009
Classification of the employees
Skilled
Semi-skilled
Unskilled
Zones
I
II
III
I
II
III
I
II
III
Calculation of Dearness Allowance for the year 2006
Average points for the year 2005714.00714.00714.00714.00714.00714.00714.00714.00714.00
Base points501.00501.00501.00501.00501.00501.00501.00501.00501.00
Difference points213.00213.00213.00213.00213.00213.00213.00213.00213.00
Rate of Variable Dearness Allowance4.104.104.104.104.104.104.104.104.10
Cost of Living Allowance (Special Allowance)
873.30
873.30
873.30
873.30
873.30
873.30
873.30
873.30
873.30
[B]Calculation of Basic for the year 2007-2008
Basic
3330.00
3230.00
2930.00
3230.00
3130.00
2830.00
3130.00
3030.00
2730.00
[B]Calculation of Wage for the year 2007-2008
Minimum wages
4203.30
4103.30
3803.30
4103.30
4003.30
3703.30
4003.30
3903.30
3603.30
Minimum wage per day
161.67
157.82
146.28
157.82
153.97
142.43
153.97
150.13
138.59
Minimum wage per day (rounded to the nearest rupee)
161.70
157.90
146.30
157.90
154.00
142.50
154.00
150.20
138.60
[B]Note:
Daily wages = Monthly wages divided by 26
Zone IMunicipal Corporation of Greater Mumbai
Zone IIA and B grade Municipal Councils
Zone IIIAll other areas in the state other than Zone I and II
From India, Madras
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Appended statement is the Current Minimum Wages of S & E - Maharashtra.
SHOP AND COMMERCIAL ESTABLISHMENTS (Maharashtra) FOR THE PERIOD 01/01/2009 TO 30/06/2009
Classification of the employees
Skilled
Semi-skilled
Unskilled
Zones
I
II
III
I
II
III
I
II
III
Calculation of Dearness Allowance for the year 2006
Average points for the year 2005714.00714.00714.00714.00714.00714.00714.00714.00714.00
Base points501.00501.00501.00501.00501.00501.00501.00501.00501.00
Difference points213.00213.00213.00213.00213.00213.00213.00213.00213.00
Rate of Variable Dearness Allowance4.104.104.104.104.104.104.104.104.10
Cost of Living Allowance (Special Allowance)
873.30
873.30
873.30
873.30
873.30
873.30
873.30
873.30
873.30
[B]Calculation of Basic for the year 2007-2008
Basic
3330.00
3230.00
2930.00
3230.00
3130.00
2830.00
3130.00
3030.00
2730.00
[B]Calculation of Wage for the year 2007-2008
Minimum wages
4203.30
4103.30
3803.30
4103.30
4003.30
3703.30
4003.30
3903.30
3603.30
Minimum wage per day
161.67
157.82
146.28
157.82
153.97
142.43
153.97
150.13
138.59
Minimum wage per day (rounded to the nearest rupee)
161.70
157.90
146.30
157.90
154.00
142.50
154.00
150.20
138.60
[B]Note:
Daily wages = Monthly wages divided by 26
Zone IMunicipal Corporation of Greater Mumbai
Zone IIA and B grade Municipal Councils
Zone IIIAll other areas in the state other than Zone I and II
From India, Madras
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Hi Samvedan,
I appreciate your knowledge. Can you let me know how and where I could get the latest updates for labor legislation and other issues via email? Please email me some suggestions at hr@sunconengineers.com.
Regards,
Sagar
From United States, Los Angeles
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I appreciate your knowledge. Can you let me know how and where I could get the latest updates for labor legislation and other issues via email? Please email me some suggestions at hr@sunconengineers.com.
Regards,
Sagar
From United States, Los Angeles
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I do not have a soft copy of the said judgment, but I can mail a hard copy to whatever address you provide. Alternatively, just check with the company advocate, and he will be able to give you a hard copy anyway!
From India, Mumbai
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From India, Mumbai
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Minimum wages include the minimum wages declared by the government, special allowance declared by the government, and HRA at 5% if the act is applicable (it is a special act in Maharashtra). You cannot bifurcate the above amount into various allowances, but you can provide it over and above the same.
The minimum basic and special allowance will attract statutory deductions like PF, ESIC, and PT as well.
From India, Bangalore
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The minimum basic and special allowance will attract statutory deductions like PF, ESIC, and PT as well.
From India, Bangalore
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MinimuAm wages pf judgement PFC, Gurgaon VS G4S Security Services Supreme Court 17-Aug-2023.pdf
Judgement by supreme court.zip