Dear All,
I have a Pvt Ltd company in Bangalore and am now going to open a branch office in Tamil Nadu. I have a few queries on the following items:
1. Minimum Wages - Should we follow the rates as per Tamil Nadu where the branch office is located, or adhere to the Karnataka wages act since the head office is in Bangalore?
2. ESIC - Should the contributions be made in Tamil Nadu or in Karnataka?
Thank you.
From India
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I have a Pvt Ltd company in Bangalore and am now going to open a branch office in Tamil Nadu. I have a few queries on the following items:
1. Minimum Wages - Should we follow the rates as per Tamil Nadu where the branch office is located, or adhere to the Karnataka wages act since the head office is in Bangalore?
2. ESIC - Should the contributions be made in Tamil Nadu or in Karnataka?
Thank you.
From India
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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 wage that is applicable for Scheduled employment (scheduled employment is a list of employment notified by the Government under the Minimum Wages Act) by the State Government or Central Government. The wages are fixed by the 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 Branch 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 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 a sub-code for now until you have substantially increased manpower in your branch office for the reasons of ease of administration.
From India, Chennai
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321You 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 wage that is applicable for Scheduled employment (scheduled employment is a list of employment notified by the Government under the Minimum Wages Act) by the State Government or Central Government. The wages are fixed by the 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 Branch 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 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 a sub-code for now until you have substantially increased manpower in your branch office for the reasons of ease of administration.
From India, Chennai
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Please find the below answers:
1. Minimum Wages - Though the company's Headquarters 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 a different place from the home location. Please also peruse the following link to understand 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 the Tamil Nadu location.
From India, Aizawl
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1. Minimum Wages - Though the company's Headquarters 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 a different place from the home location. Please also peruse the following link to understand 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 the Tamil Nadu location.
From India, Aizawl
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Dear Mohamed,
The following acts are applicable to 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 regulations.
5. Gratuity Act - Employees should have at least 5 years of experience.
6. Payment of wages.
7. Maternity Act.
8. If you want to get an exemption from the above compliance, you may follow these guidelines: https://docs.google.com/document/d/1...it?usp=sharing
Thank you.
From India, New Delhi
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The following acts are applicable to 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 regulations.
5. Gratuity Act - Employees should have at least 5 years of experience.
6. Payment of wages.
7. Maternity Act.
8. If you want to get an exemption from the above compliance, you may follow these guidelines: https://docs.google.com/document/d/1...it?usp=sharing
Thank you.
From India, New Delhi
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