Requesting all my seniors and colleagues, please help me resolve my query:
Statutory Compliance and Minimum Wage Query
We hired an employee on our company payroll and deployed them at a client location in another state where we do not have any branch office. Please let me know which state's statutory compliance we have to follow and in which state's minimum wage salary should be paid to the employee. If we pay the wages according to the client's state, how do we comply with the professional tax, considering it is applicable in the client's state where we do not have any branch office?
Thank you.
From India, Delhi
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2Statutory Compliance and Minimum Wage Query
We hired an employee on our company payroll and deployed them at a client location in another state where we do not have any branch office. Please let me know which state's statutory compliance we have to follow and in which state's minimum wage salary should be paid to the employee. If we pay the wages according to the client's state, how do we comply with the professional tax, considering it is applicable in the client's state where we do not have any branch office?
Thank you.
From India, Delhi
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When fixing statutory minimum wages for scheduled employments under the Minimum Wages Act of 1948, the location or place of employment is an essential factor. In all matters pertaining to employment issues, generally, the place of work is the decisive factor in determining jurisdiction. Therefore, by whom and where the employee is recruited or appointed is immaterial, but only where and for whom his services are actually engaged determine his employment rights and benefits and his liability to local taxes like professional tax. Therefore, such an employee deputed to a client's site should be paid the minimum wages applicable to the client's state, and the professional tax should be deducted and paid over to the local authority of his place of employment.
From India, Salem
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From India, Salem
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Telangana State - Minimum Wages CPI Notification 1st April 2019 - 30th September 2019.pdf
Minimum wages state wise details.xls