In a housing society, where security guards over the age of 58 are appointed as new appointees, is it compulsory to deduct PF & ESI contributions from them, considering they are very poorly paid (approximately Rs 8000 per month) and it is difficult to claim PF from the PF office after their sudden sacking?
From India, Kolkata
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From India, Kolkata
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EPF and Pension Contributions
If they are in receipt of a pension from the EPF (not a pension from other government or railway services), then they should be covered by EPF. Yes, the entire amount of the employer's share shall be paid to EPF without bifurcating it as 8.33% to the Pension Fund and the remaining to EPF.
ESI Contributions
In the case of ESI, there is no age limit, and hence they should invariably be given ESI contributions.
Statutory Minimum Wage Concerns
My doubt is, if they are paid only Rs 8000, how much is the statutory minimum wage for them in your state? And will you get people for this amount?
From India, Kannur
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4526If they are in receipt of a pension from the EPF (not a pension from other government or railway services), then they should be covered by EPF. Yes, the entire amount of the employer's share shall be paid to EPF without bifurcating it as 8.33% to the Pension Fund and the remaining to EPF.
ESI Contributions
In the case of ESI, there is no age limit, and hence they should invariably be given ESI contributions.
Statutory Minimum Wage Concerns
My doubt is, if they are paid only Rs 8000, how much is the statutory minimum wage for them in your state? And will you get people for this amount?
From India, Kannur
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Just now, I read on Google that the Bombay High Court has ruled that housing societies are not covered as an industry and, therefore, the provisions of various labor laws are not applicable to them.
In reality, housing societies engage people—security, housekeeping, gardening, etc.—through contractors. These contractor organizations are covered under PF and ESIC and also engage people in the industry. The contractors also employ people in different locations—industry, establishment, housing, etc. Moreover, 18% GST is also applicable.
Solution Based on the Bombay High Court Verdict
One solution, based on the Bombay High Court verdict, is that the housing society may engage employees directly to avoid PF, ESIC, and GST.
Minimum Wages in West Bengal
The minimum wages in WB, Municipal area (Zone-A) for the unskilled category are probably close to 9000/-. There is a House Rent Allowance Act, which is 5% of Basic + DA applicable in WB. Therefore, the minimum wages should be 9000 + 450 = 9450/- for the unskilled category in WB. In my opinion, at least the unskilled minimum wages should be paid to employees.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity.
From India, New Delhi
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In reality, housing societies engage people—security, housekeeping, gardening, etc.—through contractors. These contractor organizations are covered under PF and ESIC and also engage people in the industry. The contractors also employ people in different locations—industry, establishment, housing, etc. Moreover, 18% GST is also applicable.
Solution Based on the Bombay High Court Verdict
One solution, based on the Bombay High Court verdict, is that the housing society may engage employees directly to avoid PF, ESIC, and GST.
Minimum Wages in West Bengal
The minimum wages in WB, Municipal area (Zone-A) for the unskilled category are probably close to 9000/-. There is a House Rent Allowance Act, which is 5% of Basic + DA applicable in WB. Therefore, the minimum wages should be 9000 + 450 = 9450/- for the unskilled category in WB. In my opinion, at least the unskilled minimum wages should be paid to employees.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity.
From India, New Delhi
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Misnomer of "Housing Society"
In my opinion, calling the so-called associations of owners of apartments and individual houses situated in a housing complex as a "Housing Society" is a misnomer. Maintenance and upkeep of incidental facilities like gardening, common area sweeping, pumping water, security, etc., are individual responsibilities of the respective house owners, practically carried out on a collective basis. The expenses in this regard are met from the common charges collected from each unit in the complex. Only in this aspect of the matter, the honorable High Court would rule so in the given case. Security from theft and trespass, ease of comfort and convenience, or the enhancement of the ambiance of the entire area can be the purpose of the engagement of labor in such activities.
Element of Business in Housing Societies
However, the element of business comes into play when persons are hired through contractors for these works, as the contractors perform this work in an integrated manner by exercising their own decisions in the matters of appointment, control, supervision, and payment concerning such persons engaged for the house owners' association. In any contract work undertaken by a third party involving the engagement of their own workmen, the application of labor laws is inevitable as the emphasis is more on the mode of execution of the work rather than its purpose and the ultimate beneficiary.
From India, Salem
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In my opinion, calling the so-called associations of owners of apartments and individual houses situated in a housing complex as a "Housing Society" is a misnomer. Maintenance and upkeep of incidental facilities like gardening, common area sweeping, pumping water, security, etc., are individual responsibilities of the respective house owners, practically carried out on a collective basis. The expenses in this regard are met from the common charges collected from each unit in the complex. Only in this aspect of the matter, the honorable High Court would rule so in the given case. Security from theft and trespass, ease of comfort and convenience, or the enhancement of the ambiance of the entire area can be the purpose of the engagement of labor in such activities.
Element of Business in Housing Societies
However, the element of business comes into play when persons are hired through contractors for these works, as the contractors perform this work in an integrated manner by exercising their own decisions in the matters of appointment, control, supervision, and payment concerning such persons engaged for the house owners' association. In any contract work undertaken by a third party involving the engagement of their own workmen, the application of labor laws is inevitable as the emphasis is more on the mode of execution of the work rather than its purpose and the ultimate beneficiary.
From India, Salem
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PF Contribution on not less than Minimum Wage.pdf
Minimum Wages, ESI & PF.pps