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Dear Sir/Madam, I am working in a real estate firm. Please guide me if my company's documentation is done in Delhi for PF & ESIC, but now the company's headquarters are located in Gurugram, Haryana, and our sites are in Rajasthan where all the labor is working. In that case, which minimum wages should we follow - Delhi, Haryana, or Rajasthan?
From India, undefined
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Glidor
651

Obtaining Subcodes for Compliance

Site offices should obtain subcodes for ESIC, EPF, PT, etc., and register the employees simultaneously to ensure compliance with state-based minimum wage implementation. If the control is managed centrally, then site workers would be classified as inter-state migrant workers and would fall under the Central Wages Act.


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Minimum Wages for Site Workers

In my opinion, minimum wages are applicable for site workers where they are deployed. However, if any head office (HO) employee is temporarily posted at the site or branch office, their wages can be considered as per the HO State Act.

Whether the minimum wages applicable are under the Central or State jurisdiction depends on who the Appropriate Government is for the establishment or contract. The same point will be applicable under the Contract Labour Act.

Processing Site Workers' Wages

When processing site workers' wages, please mention the site name (location with State Name) so that in case of any inspection at your HO, you can easily clarify the point.

Senior members, please provide more insights on the matter and correct me.

From India, Delhi
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply contains accurate information regarding the applicability of minimum wages based on the location of site workers and the establishment's appropriate government. No corrections needed. Well done! (1 Acknowledge point)
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  • Glidor
    651

    If the establishment opts to get a sub-code in the state of the site, then the state-based minimum wage is applicable. Site deputation from the central office is for a short period, and the employee has to report back to the headquarters after the deputation. This point is missing in the post. If the payroll management and compliance are done centrally, then it would be considered an interstate migrant employee.

    Hope you can read it once again with all the facts mentioned.


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    Dear Glidor (HR Consultant), on thoroughly reviewing the word-for-word query raised by the poster and our inputs, I would like to share the following one-to-one insights.

    1. I think there is no link between taking a Sub Code and paying Minimum Wages. Even if an establishment doesn't take any sub code (or is not registered under PF-ESI), the Minimum Wages Act must still be followed as per applicable laws.

    2. I have also mentioned that if any Head Office (HO) personnel visit the site/branch office, they will be paid as per the HO State Act.

    3. In my opinion, there is no link between making Payroll-Compliance centrally and the implementation of the Minimum Wages Act. If the establishment falls under the purview of the Minimum Wages Act, it must be followed whether the payroll is done centrally or locally.

    4. Moreover, the poster raised a query about which state's minimum wages will be applicable to the site people located in Rajasthan. They did not ask about Inter State Migrant, Sub Code, etc.

    In short, the Minimum Wages as applicable in Rajasthan State (Appropriate Government) will be applicable to the site workers. For people working in Delhi, the Delhi State Minimum Wages will be applicable, and for those working in the HO (Gurugram), Haryana Minimum Wages will be applicable. In this case, there is no link to Inter State Migrant Worker, ESI-PF Sub Code, or whether payroll is managed centrally or locally.

    I would like to hear valued comments from Mr. Umakanth, Mr. Madhu, Mr. Dines Divekar, and other senior members.

    From India, Delhi
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