Dear all,
I am a little bit confused about the concept of minimum wages. Kindly help.
I want to confirm whether minimum wages include the employee's share of PF and ESI or not.
Please answer.
Thanks in anticipation.
From India, New Delhi
Acknowledge(0)
Amend(0)
6I am a little bit confused about the concept of minimum wages. Kindly help.
I want to confirm whether minimum wages include the employee's share of PF and ESI or not.
Please answer.
Thanks in anticipation.
From India, New Delhi
Acknowledge(0)Amend(0)
Thank you, Kapil.
To clear my doubt, I have gone through the Minimum Wages Act of 1948. It states:
(h) "wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes house rent allowance but does not include:
(i) the value of:
(a) any house accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge.
This means it includes Employee contributions of PF and ESIC, permissible deductions.
Thank you again.
From India, New Delhi
Acknowledge(0)Amend(0)
To clear my doubt, I have gone through the Minimum Wages Act of 1948. It states:
(h) "wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes house rent allowance but does not include:
(i) the value of:
(a) any house accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge.
This means it includes Employee contributions of PF and ESIC, permissible deductions.
Thank you again.
From India, New Delhi
Acknowledge(0)Amend(0)
Wages = all salary parts(attributes) except employee’s share of pf and esic(whatsoever is applicable)
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Kindly go through the comments of sec1 minimum wages act and definition as well. it will help you in understanding the purpose of minimum wages act
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear all ... i want to have the recent minimum wages rate (i.e for 2009-10 Maharashtra) for skilled unskilled and semi skilled workers.
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
Don't be confused with minimum wages and PF, ESI. As per the Minimum Wages Act, the basic rate has to be revised based on categories. So, when the basic rate changes in the revision, PF and ESI will be deducted from the new basic rate.
From India, Angul
Acknowledge(0)Amend(0)
From India, Angul
Acknowledge(0)Amend(0)
Dear Sir, As per the karnataka labour Minimum wages act the ESI and PF are not included in Minimum wages. Only Basic and VDA or DA is included in Minimum Wages. M.Surendra
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear all ... i want to have the recent minimum wages notification of himanchal pradesh,uttarakhand and punjab state for skilled unskilled and semi skilled workers
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Minimum wages include ESI (1.75%) and PF (12%) contributions of the employee. For example, for an unskilled laborer employed in central government projects in Delhi, the minimum wage he should be paid is 203 Rs. If he works 10 days, his total earnings will be 2030 Rs, from which the employer can deduct the above-mentioned employee share of ESI and PF. That is, 2030 - (36 + 243) = 1751, net pay. I hope it is clear now.
Thank you,
Sivan A
From India, Madras
Acknowledge(0)Amend(0)
Thank you,
Sivan A
From India, Madras
Acknowledge(0)Amend(0)
As far as concerns with the Minimum Wages, it's a part of the earnings only, not deductions of employees, and that's very crystal clear. Don't mix up and confuse.
Minimum Wages = Basic + DA declared by the respective authority from time to time for the specified categories.
Regards,
Santosh
From India, Pune
Acknowledge(0)Amend(0)
Minimum Wages = Basic + DA declared by the respective authority from time to time for the specified categories.
Regards,
Santosh
From India, Pune
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.