Minimum wage does not include the employer’s share of PF and ESIC; and it has been checked before deduction of employee’s share of PF.
From India, Madras
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1From India, Madras
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Minimum wages do not include PF and ESIC.
PF and ESIC provisions require contributions from both the employer and the employee. Employers are required to contribute to the employee's account and are authorized to deduct the employee's contributions from their earnings, which should not fall below the minimum wages.
Employer contributions are in addition to the minimum wages paid to the employee. Employers cannot deduct their share of contributions from the employee's earnings (minimum wages).
For example, if the minimum wage in a region/state is Rs. 140 per day and the Special Allowance/DA is Rs. 15 per day (total Rs. 155 per day), an employee working for 25 days will earn Rs. 3875 in a month.
The employee's PF contribution will be Rs. 465, deducted from their earnings. The employer must also contribute an equal amount of Rs. 465. This total of Rs. 930 will be deposited in the employee's PF account, making it Rs. 4340 in total, equivalent to Rs. 173.5 per day for that month.
However, the employee will take home Rs. 3410 for that month, i.e., Rs. 136.4 per day, which may be mistaken for the minimum wage.
A similar contribution method applies to ESIC as well.
I hope I have clarified the question. Please correct me where necessary.
From India, New Delhi
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PF and ESIC provisions require contributions from both the employer and the employee. Employers are required to contribute to the employee's account and are authorized to deduct the employee's contributions from their earnings, which should not fall below the minimum wages.
Employer contributions are in addition to the minimum wages paid to the employee. Employers cannot deduct their share of contributions from the employee's earnings (minimum wages).
For example, if the minimum wage in a region/state is Rs. 140 per day and the Special Allowance/DA is Rs. 15 per day (total Rs. 155 per day), an employee working for 25 days will earn Rs. 3875 in a month.
The employee's PF contribution will be Rs. 465, deducted from their earnings. The employer must also contribute an equal amount of Rs. 465. This total of Rs. 930 will be deposited in the employee's PF account, making it Rs. 4340 in total, equivalent to Rs. 173.5 per day for that month.
However, the employee will take home Rs. 3410 for that month, i.e., Rs. 136.4 per day, which may be mistaken for the minimum wage.
A similar contribution method applies to ESIC as well.
I hope I have clarified the question. Please correct me where necessary.
From India, New Delhi
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Dear All,
Minimum wages include only Basic & DA. Every year, the respective state government will release the notification of rates of minimum wages. They will calculate the points based on the cost of living. Based on these points, they will fix the rates of wages. It differs from one industry to another industry.
From India, Bangalore
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Minimum wages include only Basic & DA. Every year, the respective state government will release the notification of rates of minimum wages. They will calculate the points based on the cost of living. Based on these points, they will fix the rates of wages. It differs from one industry to another industry.
From India, Bangalore
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Dear Nishu, You seems to be not clear what you want to know. Please be informed that ESI/EPF contribution shall be deducted on M/Wages as applicable in your state. Surendra Verma
From India, Delhi
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From India, Delhi
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Hi all,
Can someone please provide me with information on how to quote the price for minimum wages in Telangana state, including ESI, EPF, and bonus? Additionally, could you direct me to the category where I can find details on housekeeping wage rates?
Regards,
Uma Rani
From India, Hyderabad
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Can someone please provide me with information on how to quote the price for minimum wages in Telangana state, including ESI, EPF, and bonus? Additionally, could you direct me to the category where I can find details on housekeeping wage rates?
Regards,
Uma Rani
From India, Hyderabad
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