1. Is ESI+PF share to be deducted from arrear salary (which section)?
2. One of our employees is currently receiving a salary of basic 4500 + HRA 1000 + conveyance 500. Now, as per the revised minimum wages, the basic should be 6000/-. Can we adjust the amount from the allowances so that his minimum salary will be 6000/- without any extra increment?
From India, Delhi
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2. One of our employees is currently receiving a salary of basic 4500 + HRA 1000 + conveyance 500. Now, as per the revised minimum wages, the basic should be 6000/-. Can we adjust the amount from the allowances so that his minimum salary will be 6000/- without any extra increment?
From India, Delhi
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Pl. refer the Chapter VIII of ESI manual regarding Contributions on wages paid for back periods (arrears of wages):
CONTRIBUTION
CHAPTER VIII
Thus, non-payment of Contributions results in payment of Penal Interest, Damages and also invites Criminal
Action Simultaneously
L 8.19 Contributions on wages paid for back periods (arrears of wages):
The question of payment of wages for back period arises in any one of the following contingencies:-
1. Sanction and payment of increment from a previous period;
2. Any increase in wages/remuneration is declared from a retrospective date as a result of wage revision
under mutual agreement with the employees’ association/union and the management;
3. Periodical increases in Dearness Allowance from a back date;
4. An award of a tribunal or a judgment of any Court; and
5. A unilateral decision by the Management effecting increase in pay.
In all the above contingencies, the liability towards payment of contribution accrues only from the month
in which the increment is sanctioned, agreement is entered in to, increase is announced, judgment is
pronounced, or decision is taken as the case may be. There is no need to pay any contribution on the
arrears pertaining to the period prior to the month of declaration/announcement/agreement as the case
may be.
From India, Pune
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9CONTRIBUTION
CHAPTER VIII
Thus, non-payment of Contributions results in payment of Penal Interest, Damages and also invites Criminal
Action Simultaneously
L 8.19 Contributions on wages paid for back periods (arrears of wages):
The question of payment of wages for back period arises in any one of the following contingencies:-
1. Sanction and payment of increment from a previous period;
2. Any increase in wages/remuneration is declared from a retrospective date as a result of wage revision
under mutual agreement with the employees’ association/union and the management;
3. Periodical increases in Dearness Allowance from a back date;
4. An award of a tribunal or a judgment of any Court; and
5. A unilateral decision by the Management effecting increase in pay.
In all the above contingencies, the liability towards payment of contribution accrues only from the month
in which the increment is sanctioned, agreement is entered in to, increase is announced, judgment is
pronounced, or decision is taken as the case may be. There is no need to pay any contribution on the
arrears pertaining to the period prior to the month of declaration/announcement/agreement as the case
may be.
From India, Pune
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PF Contribution on not less than Minimum Wage.pdf
Minimum Wages, ESI & PF.pps