Dear All,
I have a doubt as to whether or not the below structure is complying with the Minimum Wages structure. Case below:
Minimum Wage in Uttar Pradesh - Rs 5800
Basic - Rs 5800
Bonus - Rs 292
This makes total payabale salary Rs 6092
Employee Contribution = Rs 803 (PF - Rs 696 and ESI - Rs 107)
Net Payabale Salary to employee = Rs 6092 - Rs 803 = Rs 5289
Now, net payabale salary (5289) has fallen below Minimum wage level (5800)
So, is the above structure correct, or should I put Net Payabale Salary as Rs 5800 and work my way up to calculate Basic and Bonus.
From India, Gurgaon
1I have a doubt as to whether or not the below structure is complying with the Minimum Wages structure. Case below:
Minimum Wage in Uttar Pradesh - Rs 5800
Basic - Rs 5800
Bonus - Rs 292
This makes total payabale salary Rs 6092
Employee Contribution = Rs 803 (PF - Rs 696 and ESI - Rs 107)
Net Payabale Salary to employee = Rs 6092 - Rs 803 = Rs 5289
Now, net payabale salary (5289) has fallen below Minimum wage level (5800)
So, is the above structure correct, or should I put Net Payabale Salary as Rs 5800 and work my way up to calculate Basic and Bonus.
From India, Gurgaon
hi
Minimum wage is the gross rate. Hence , deduction can be done and pay the net salary. Industry practice is gross minimum wages is devided under heads basic, hra, special allow and coveyance. this may be advantage to both employee and employer. employee take home will increase thru this.
From India, Hyderabad
Minimum wage is the gross rate. Hence , deduction can be done and pay the net salary. Industry practice is gross minimum wages is devided under heads basic, hra, special allow and coveyance. this may be advantage to both employee and employer. employee take home will increase thru this.
From India, Hyderabad
DO you have a legal document to support that, which can help me solve this notice that has been issued.
From India, Gurgaon
From India, Gurgaon
Hi
Usually they will have Basic + DA and DA points will increase for every 6 Months and it is clearly mentioned in that.
Paycheck India - Gujarat Minimum Wages, Minimum Wage Rate Gujarat 2012
Regards
Karthik
From India, Vijayawada
Usually they will have Basic + DA and DA points will increase for every 6 Months and it is clearly mentioned in that.
Paycheck India - Gujarat Minimum Wages, Minimum Wage Rate Gujarat 2012
Regards
Karthik
From India, Vijayawada
Dear Harshlee,
Minimum wages is the minimum wage that has to be paid for an employee in a day or month by the company.
Minimum wages is derrived only from Basic + VDA. You cannot bring other allowance like HRA, Conveyance or Spl Allowance.
If your minimum wages is Rs. 5800(193/day) then you make Basic salary(Basic + DA) salary as gross salary (Rs.5800) and don't show any allowance. you can deduct PF and ESI on the gross salary.
What i suggest is since UP revises minimum wages twice in a year you can increase Rs.5800/month + 250 or 300 in the salary so that you don't have an issue for the entire financial year.
So in april when you increase the salary of the employee you keep in mind by increasing Rs.250 or 300 along with minimum wages you don't have a problem for the entire financial year and also there will be uniformity in appraisal or pay hike.
From India, Mumbai
Minimum wages is the minimum wage that has to be paid for an employee in a day or month by the company.
Minimum wages is derrived only from Basic + VDA. You cannot bring other allowance like HRA, Conveyance or Spl Allowance.
If your minimum wages is Rs. 5800(193/day) then you make Basic salary(Basic + DA) salary as gross salary (Rs.5800) and don't show any allowance. you can deduct PF and ESI on the gross salary.
What i suggest is since UP revises minimum wages twice in a year you can increase Rs.5800/month + 250 or 300 in the salary so that you don't have an issue for the entire financial year.
So in april when you increase the salary of the employee you keep in mind by increasing Rs.250 or 300 along with minimum wages you don't have a problem for the entire financial year and also there will be uniformity in appraisal or pay hike.
From India, Mumbai
You already have the answers from others here : minimum wages is computed on gross of basic + da. If your basic is 5800 then you have complied with the requirements of the law.
However, bonus can not be paid on monthly basis. It will have a problem. Ou will again be required to,pay bonus at the end of the year in line with payment of bonus act. Monthly payment does not qualify as bonus.
From India, Mumbai
However, bonus can not be paid on monthly basis. It will have a problem. Ou will again be required to,pay bonus at the end of the year in line with payment of bonus act. Monthly payment does not qualify as bonus.
From India, Mumbai
I dont agree with the view of sasawatabanerjee and in a number of COmpanies Bonus is being paid to the workers on a montly basis as it avoids lots of complications instead for the reasons after the end of financial year worker may not be working with the same contractor or for such other similar reason, therefore its better that in case of contract labour the Bonus amount is paid along with the salary on monthly basis.
From India, Mumbai
From India, Mumbai
Bonus can be paid on monthly but remember it is subjected to ESI deductions.
As per ESIC, Any payment made in an interval of not exceeding two months shall attract ESI. Therefore, if bonus is paid monthly, the same will be treated as part of salary and will attract ESI. But bonus paid annually will not be subjected for ESI ACT or deductions.
From India, Mumbai
As per ESIC, Any payment made in an interval of not exceeding two months shall attract ESI. Therefore, if bonus is paid monthly, the same will be treated as part of salary and will attract ESI. But bonus paid annually will not be subjected for ESI ACT or deductions.
From India, Mumbai
Dear Peeush
Please don't mind as a HR the intrepretation : "I don't agree with saswatha" is not correct.
I want to add that many companies are paying Bonus on Monthly basis would have been better.
Dear All
As HR we have to educate employees on E-Mail Etiquette like before writing something firsh Salute/Wish, Second line content and last Regards/Cheers/Chills and Finally Name.
Regards
Karthik
From India, Vijayawada
Please don't mind as a HR the intrepretation : "I don't agree with saswatha" is not correct.
I want to add that many companies are paying Bonus on Monthly basis would have been better.
Dear All
As HR we have to educate employees on E-Mail Etiquette like before writing something firsh Salute/Wish, Second line content and last Regards/Cheers/Chills and Finally Name.
Regards
Karthik
From India, Vijayawada
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