Hi, I request the advice of fellow members:
Background: Oil and gas pipe testing and assembling (not manufacturing) company with about 80 employees, taking contracts from ONGC, Tata, Adani, etc. Hence, 80% of staff are distributed on projects in different states. The remaining employees are at the Head Office in Bombay.
1) Does the company come under central or state jurisdiction? And under which employment category/rate?
2) For employees working on projects in states outside Bombay, should the wage rate of that state be followed or that of Bombay?
Salary Breakup:
- Basic, DA, HRA, Conveyance
- Onshore allowances – paid only for those on projects, which can vary from 1 to 6 months.
- Attendance allowance – paid if physically present at work.
A) PF to be deducted on which heads?
B) ESI to be deducted on which heads?
3) Which components should be considered for overtime calculation?
Looking forward to answers with supporting documents from the group.
From India, Delhi
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Background: Oil and gas pipe testing and assembling (not manufacturing) company with about 80 employees, taking contracts from ONGC, Tata, Adani, etc. Hence, 80% of staff are distributed on projects in different states. The remaining employees are at the Head Office in Bombay.
1) Does the company come under central or state jurisdiction? And under which employment category/rate?
2) For employees working on projects in states outside Bombay, should the wage rate of that state be followed or that of Bombay?
Salary Breakup:
- Basic, DA, HRA, Conveyance
- Onshore allowances – paid only for those on projects, which can vary from 1 to 6 months.
- Attendance allowance – paid if physically present at work.
A) PF to be deducted on which heads?
B) ESI to be deducted on which heads?
3) Which components should be considered for overtime calculation?
Looking forward to answers with supporting documents from the group.
From India, Delhi
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1. The jurisdiction for the company would depend on various factors such as the nature of work, locations of operation, and applicability of labor laws. Given that the company operates in multiple states and has a presence in Bombay, it may fall under both central and state jurisdictions. It is advisable to consult legal experts or relevant authorities to determine the exact jurisdiction and employment category/rate for the company.
2. When it comes to determining the wage rates for employees working on projects in states outside Bombay, the prevailing wage rate of the respective state should generally be followed. However, specific regulations and agreements with clients like ONGC, Tata, and Adani may also influence this decision. It is essential to ensure compliance with both state-specific regulations and any contractual obligations.
3. Regarding the salary breakup components and deductions:
- Provident Fund (PF) should typically be deducted from components like Basic, DA, and HRA.
- Employee State Insurance (ESI) deductions are usually made from the Gross Salary, which includes Basic, DA, HRA, and other allowances.
- For overtime calculations, components like Basic and Dearness Allowance are commonly considered. However, it is crucial to refer to the relevant labor laws and company policies to determine the exact components for overtime pay calculations.
From India, Gurugram
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512. When it comes to determining the wage rates for employees working on projects in states outside Bombay, the prevailing wage rate of the respective state should generally be followed. However, specific regulations and agreements with clients like ONGC, Tata, and Adani may also influence this decision. It is essential to ensure compliance with both state-specific regulations and any contractual obligations.
3. Regarding the salary breakup components and deductions:
- Provident Fund (PF) should typically be deducted from components like Basic, DA, and HRA.
- Employee State Insurance (ESI) deductions are usually made from the Gross Salary, which includes Basic, DA, HRA, and other allowances.
- For overtime calculations, components like Basic and Dearness Allowance are commonly considered. However, it is crucial to refer to the relevant labor laws and company policies to determine the exact components for overtime pay calculations.
From India, Gurugram
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Talent Management for Oil & Gas Sector.pdf