Hi all, Can anyone help me in - What would be the basic rate if a person gross pay is 15000? Renuka
From India, New Delhi
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From India, New Delhi
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Dear Renuka,
If you do have the time and patience to peruse the similar threads already available on the same issue, you will certainly understand that there is no hard and fast rule nor any straight jacket formula to divide the gross salary of an employee into different components. But care must be exercised to see whether the particular post/job is covered by the Minimum Wages Act, 1948, and if minimum rates of wages have been fixed, and the componential structure is similar to your industry wage structure. Besides, you have to take into account the periodical cost of employer's contributions to such statutory social security components like EPF, ESI, Gratuity, etc., and other indirect commitments like statutory bonus.
Similarly, it is also important to compare the prevailing wage structures of the same or similar post in the same or similar type of industries in the region. Therefore, you may devise the structure in such a manner that the sum of basic and dearness allowance constitutes not less than 70% of the total salary package.
From India, Salem
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6108If you do have the time and patience to peruse the similar threads already available on the same issue, you will certainly understand that there is no hard and fast rule nor any straight jacket formula to divide the gross salary of an employee into different components. But care must be exercised to see whether the particular post/job is covered by the Minimum Wages Act, 1948, and if minimum rates of wages have been fixed, and the componential structure is similar to your industry wage structure. Besides, you have to take into account the periodical cost of employer's contributions to such statutory social security components like EPF, ESI, Gratuity, etc., and other indirect commitments like statutory bonus.
Similarly, it is also important to compare the prevailing wage structures of the same or similar post in the same or similar type of industries in the region. Therefore, you may devise the structure in such a manner that the sum of basic and dearness allowance constitutes not less than 70% of the total salary package.
From India, Salem
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Basic rate should not be less than the minimum wages defined prescribed under the minimum wages act of 1948 , the minimum wages is consist of Basic+DA. sumit kumar saxena
From India, Ghaziabad
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From India, Ghaziabad
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Yes... Absolutely... Basic payment 15k is attractive for fresh candidates... So keep it up...
From India, Nazareth
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From India, Nazareth
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Dear Renuka,
The basic wages of the concerned employee would be as per the skill category. Please refer to the rate of minimum wages in your state to calculate it. Show the balance amount against daily allowance. The EPF shall be calculated based on the basic wages earned, while the ESI will be calculated on a gross of 15000. The gratuity should also be calculated based on the basic wages.
Thank you.
From India, Mumbai
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The basic wages of the concerned employee would be as per the skill category. Please refer to the rate of minimum wages in your state to calculate it. Show the balance amount against daily allowance. The EPF shall be calculated based on the basic wages earned, while the ESI will be calculated on a gross of 15000. The gratuity should also be calculated based on the basic wages.
Thank you.
From India, Mumbai
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Hi All, Please find attached state wise miminum wages. Hope this helps someone. Cheers Ajay kulkarni ajayoctave@outlook.com +91-8618516451
From India, Bangalore
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From India, Bangalore
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Dear All PFA copy of the SC Judgement on PF for Allowances dated 28th Feb '19 for information. N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; E-mail : natraj@sakthimanagement.com)
From India, Bangalore
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From India, Bangalore
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Dear Mr.Nataraajhan sir, The Judgement not have the clarity about the effective date So in this regard what we have to do
From India
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From India
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Dear Renuka, Greetings!! Please select the candidate in the category of Unskilled or semi skilled. Your problem will be solve. Thanks & Rgds
From India, Delhi
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From India, Delhi
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Hi, It would be 50% of gross for metro cities and 40% of gross for non-metro cities simple.
From India, Delhi
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From India, Delhi
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Dear, Greetings! Statewise Minimum wages list is old. Please provide the latest one. Rgds
From India, Delhi
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From India, Delhi
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Please give me the clarity on New PF SC Judgement. Wat is the effective date for iplementing.
From India, Vijayawada
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From India, Vijayawada
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The Supreme Court has ruled to include SA for PF Contribution. Is it not necessary for EPFO to amend the PF rules to make employers and employees comply with the changed rules.
Comments of seniors will be appreciated.
C.N. Khan,
H.R. Consultant, Hospet.
27.3.19.
From India, Mumbai
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Comments of seniors will be appreciated.
C.N. Khan,
H.R. Consultant, Hospet.
27.3.19.
From India, Mumbai
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Respected All,
Greetings of the Day!
I have one query: please tell me how to calculate Basic and HRA for Gross salary according to government rules. Please help me.
Your cooperation will be highly appreciated.
Rahul Nain
From India, Faridabad
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Greetings of the Day!
I have one query: please tell me how to calculate Basic and HRA for Gross salary according to government rules. Please help me.
Your cooperation will be highly appreciated.
Rahul Nain
From India, Faridabad
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The basic Act of Employees' Provident Fund and Miscellaneous Provisions Act itself defines the Basic Wages as the whole amount which an employee earns while on duty or on leave. That itself is clear that by whatever name called wages means the amount that the employer has agreed to pay to an employee, and it includes everything, including special allowance. It is the same amount he gets even when he takes a paid leave. It is not that on leave days the employee will be paid only basic wages fixed by the employer. Certainly, if you pay something additional to a particular employee or a group of employees considering the special skill that he or they put in for work, that can be excluded from the definition of wages. Therefore, there is no need for amending the Act. The Act is very clear, and what is required is to change the minds of the employers and HR persons who give such wrong ideas to the employers.
Please follow the link https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
From India, Kannur
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Please follow the link https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
From India, Kannur
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Till the time there is no Gazette Notification or a Specific Circular is issued, it is deemed to a decision only; not a binding statute.
From India, undefined
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From India, undefined
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I repeat, Mr. Nihar, there is no need to issue a gazette notification based on a court verdict, nor will a gazette notification be issued by the Government to implement a policy of the EPF Organization. Certainly, in order to ensure that all establishments contribute as per the Act and the interpretation by the Apex Court, a Circular will be issued by the Central PF Commissioner to all the RPFCs and APFCs to enforce the law in its spirit and conduct inquiries under section 7A to assess any omission and make the employer pay the difference.
From India, Kannur
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From India, Kannur
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Dear Members,
The discussion started by Ms Renuka for Basic Rate pf 15 k salary. It was well described by Umakanth sir. By referring MW Act point, it is clear that his/her category (skilled, semi-skilled, unskilled etc.) must be taken care.
I have some query / clarification on the matter:-
I
One member (Mownica Selestna A) stated “Yes... Absolutely... Basic payment 15k is attractive for fresh candidates... So keep it up...”.
I would like to clear 15 k may be attractive but if the applicable MW rate (under the appropriate govt) for his/her category is more than 15 k than you must pay the rate. It is immaterial whether he/she is fresher or experienced. Law stand equal for all.
I am telling this point because Ms Renuka posted from “Delhi” where the rate of Semi Skilled, Skilled and Graduate employee are more than 15 k (15,400, 16,962 & 18,462 respectively). There is another revision due wef 01st Apr’19 (for which formal notification yet not issued). However, under Central Rule revised rates have been notified (which are Industry specific and in most cases more than 15k).
Ms Renuka, I would like to consider those points as well.
II
My next point is related to Madhu sir.
The EPFO has issued letter to the RPFCs and APFCs for the enforcement. But whether concerned PF Office will also issue further intimation to the employers or the SC Judgement itself is enough for all. If this is the case, pls tell me whether only SC Judgement is final, or we can/should treat any HC Judgement as final decision (if not challenged in SC).
My main concern is related to Gratuity Act. In a case the Hon’ble Madras Court has allowed 4 years and 240 days should be eligible for Gratuity. But there is no notification issued under the Act. Hence many experts still refer “Continuous 5 year Service” is eligible for Gratuity payment.
So the HC Judgement itself is not a final rules but related to a specific case.
Please give your valued expert advice on the same.
From India, Delhi
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The discussion started by Ms Renuka for Basic Rate pf 15 k salary. It was well described by Umakanth sir. By referring MW Act point, it is clear that his/her category (skilled, semi-skilled, unskilled etc.) must be taken care.
I have some query / clarification on the matter:-
I
One member (Mownica Selestna A) stated “Yes... Absolutely... Basic payment 15k is attractive for fresh candidates... So keep it up...”.
I would like to clear 15 k may be attractive but if the applicable MW rate (under the appropriate govt) for his/her category is more than 15 k than you must pay the rate. It is immaterial whether he/she is fresher or experienced. Law stand equal for all.
I am telling this point because Ms Renuka posted from “Delhi” where the rate of Semi Skilled, Skilled and Graduate employee are more than 15 k (15,400, 16,962 & 18,462 respectively). There is another revision due wef 01st Apr’19 (for which formal notification yet not issued). However, under Central Rule revised rates have been notified (which are Industry specific and in most cases more than 15k).
Ms Renuka, I would like to consider those points as well.
II
My next point is related to Madhu sir.
The EPFO has issued letter to the RPFCs and APFCs for the enforcement. But whether concerned PF Office will also issue further intimation to the employers or the SC Judgement itself is enough for all. If this is the case, pls tell me whether only SC Judgement is final, or we can/should treat any HC Judgement as final decision (if not challenged in SC).
My main concern is related to Gratuity Act. In a case the Hon’ble Madras Court has allowed 4 years and 240 days should be eligible for Gratuity. But there is no notification issued under the Act. Hence many experts still refer “Continuous 5 year Service” is eligible for Gratuity payment.
So the HC Judgement itself is not a final rules but related to a specific case.
Please give your valued expert advice on the same.
From India, Delhi
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EPFO has a team of enforcement officers whose primary duty is to ensure that the law (EPF & MP Act) is enforced. Whenever the rate of contribution changes, they have to inform the employers that the rate has changed, and henceforth, you should pay at the new rates. Similarly, when the ceiling is increased, they will inform us that those who come under the revised salary bracket should also be covered. But this is not a change but only a clarification. Still, there may be a circular from the RPFCs to all the employers directing that you all should start contributing on the gross salary or such amount which is the salary agreed upon as per the contract of employment. This will not make the employers pay it on gross salary, but again the Enforcement Officers should go to each employer's place and conduct inspections and collect information on omitted wages (that part of wages left out without paying PF).
If the Madras High Court has ruled that 4 years and 240 days should make 5 years of continuous service, then the appropriate authority shall quote the same when a complaint for non-payment of gratuity arises. As far as an employer is concerned, since there is no amendment given in the basic Act, how can he pay it? In the PF case, the PF Act clearly states what basic wages are, and it is nothing but the whole amount as agreed with the employee. There is no amendment required nor a direction required. The employer can read the Act and start paying the contribution on the whole salary. In the case of gratuity, a reading of the Act says that his liability comes only when an employee leaves after serving for 5 years. Therefore, he can say no if the employee has only stayed for 4 years and some 241 days in the fifth year. Certainly, the Authority under the Payment of Gratuity Act can cite a case of the Madras High Court (Mettoor Beardsel...) or Kerala High Court (Sreeja Vs RJLC) and direct the employer to pay it. If such things come to me, I will pay it, saying that a few High Courts have directed to pay it in similar cases. In order to avoid hearings and intervention of Labor department officials, you can also pay it right when an employee leaves even if he is short of a month or two.
From India, Kannur
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If the Madras High Court has ruled that 4 years and 240 days should make 5 years of continuous service, then the appropriate authority shall quote the same when a complaint for non-payment of gratuity arises. As far as an employer is concerned, since there is no amendment given in the basic Act, how can he pay it? In the PF case, the PF Act clearly states what basic wages are, and it is nothing but the whole amount as agreed with the employee. There is no amendment required nor a direction required. The employer can read the Act and start paying the contribution on the whole salary. In the case of gratuity, a reading of the Act says that his liability comes only when an employee leaves after serving for 5 years. Therefore, he can say no if the employee has only stayed for 4 years and some 241 days in the fifth year. Certainly, the Authority under the Payment of Gratuity Act can cite a case of the Madras High Court (Mettoor Beardsel...) or Kerala High Court (Sreeja Vs RJLC) and direct the employer to pay it. If such things come to me, I will pay it, saying that a few High Courts have directed to pay it in similar cases. In order to avoid hearings and intervention of Labor department officials, you can also pay it right when an employee leaves even if he is short of a month or two.
From India, Kannur
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Dear PanSingh,
Your observation as a whole deserves appreciation except for its second part, for which our learned friend Madhu has already given the right answer. When the Court, particularly the Supreme Court, interprets a particular definition clause of a Statute in a liberal and inclusive manner, it requires no amendment nor any special notification in this regard by the Legislature; just instructions from the Executive, in tune with the ratio decidendi, are sufficient as clarified by Madhu.
Regarding the application of the Honorable Madras High Court judgment in Mettur Bearsell case on the interpretation of the term "continuous service" occurring u/s 2-A and section 4 of the PG Act, 1972, as far as I am given to understand, no other High Court has taken a decision contrary to the Madras HC judgment. Even if one peruses the judgments of the Supreme Court on the interpretation of the term "continuous service" u/s 25-B of the ID Act, 1947 (sorry for my inability to quote the case due to my out-of-country stay), no deviation of interpretation could be found in the Mettur Bearsell judgment.
From India, Salem
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Your observation as a whole deserves appreciation except for its second part, for which our learned friend Madhu has already given the right answer. When the Court, particularly the Supreme Court, interprets a particular definition clause of a Statute in a liberal and inclusive manner, it requires no amendment nor any special notification in this regard by the Legislature; just instructions from the Executive, in tune with the ratio decidendi, are sufficient as clarified by Madhu.
Regarding the application of the Honorable Madras High Court judgment in Mettur Bearsell case on the interpretation of the term "continuous service" occurring u/s 2-A and section 4 of the PG Act, 1972, as far as I am given to understand, no other High Court has taken a decision contrary to the Madras HC judgment. Even if one peruses the judgments of the Supreme Court on the interpretation of the term "continuous service" u/s 25-B of the ID Act, 1947 (sorry for my inability to quote the case due to my out-of-country stay), no deviation of interpretation could be found in the Mettur Bearsell judgment.
From India, Salem
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Do anybody have the counter file details of Saint gobain on EPF verdict
From India, Coimbatore
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From India, Coimbatore
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The section 2(b) of the basic wage has exclusions too such as House Rent Allowance and other payments which are not paid to all. Section 6 of EPF Rules restricts to the limit of basic wages, dearness allowance, and retaining allowance only. Hence, we can clearly derive that:
1. Allowances not being paid to all can be excluded from contribution.
2. Payments made in terms of which reimbursement voucher is sought will be excluded.
3. Payments made on performance like overtime or extra work will be excluded.
4. House rent has already been excluded.
Hence, we can bifurcate the salary based on these parameters, ensuring that the basic wage must not be less than the minimum wage of the state.
VS Chauhan
From India, Gurgaon
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1. Allowances not being paid to all can be excluded from contribution.
2. Payments made in terms of which reimbursement voucher is sought will be excluded.
3. Payments made on performance like overtime or extra work will be excluded.
4. House rent has already been excluded.
Hence, we can bifurcate the salary based on these parameters, ensuring that the basic wage must not be less than the minimum wage of the state.
VS Chauhan
From India, Gurgaon
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Hello Everyone,
I have a revised Dearness Allowance copy for the year 2019-2020. Here, I have a doubt regarding how to calculate the Minimum Wage. Is there any revision in the Basic wage for the printing Industry?
For example: Basic Wage + 3024 (DA) = Minimum Wage
Thank you.
From India, Chennai
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I have a revised Dearness Allowance copy for the year 2019-2020. Here, I have a doubt regarding how to calculate the Minimum Wage. Is there any revision in the Basic wage for the printing Industry?
For example: Basic Wage + 3024 (DA) = Minimum Wage
Thank you.
From India, Chennai
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Yes, HRA is there in the exclusion part.But that does not mean that you can pay 90% of the pay as HRA and the rest as Basic salary.
From India, Kannur
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From India, Kannur
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Is hra and washing allowances exempted for pf contribution??
From India, Kolkata
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From India, Kolkata
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Minimum Wages Act & Rules Wage Slip Form No.XI-Rule (26(2.) .pdf