sir, I joined in proprietor base company as HR executive where i found employees had different basics from each other no uniformity i.e.20% or 30% it may be vary from person to person i.e. 15.75%, 14% as on means rs 300/-,rs 1000. rs 1500 as on now they told me to design appointment letter considering that basic & also design gross salary of new employee but 12% on basic should not beyond Rs 150/- in this situation how many minimum % take in to consideration for calculting basic if any ones salary is 7500/- or others is 14000/- pm
I am confuse what should I do?
From India, Aurangabad
I am confuse what should I do?
From India, Aurangabad
427
Dear Friend,
The basic/da salary/wages can not be less than Minimum Wages in terms of Notification as issued by the State Government. In the state of West Bengal,the MW Notification stipulates that entire money i.e minimum wages as declared is basic & da.
To be on the safer side it is advisable to follow MW Actas well as MW Notification. Most of the small companies shows lesser basic/da salary/wages with a view to paying lesser amount of payment of employer's PF contribution @13.61 because PF contribution is calculated on basic/ da.
You may take up the matter with your top management and make them understand the legal position to avoid future litigation / liabilities.
Sibabrata.Majumdar
Management Consultant Legal & HR
From India, Calcutta
The basic/da salary/wages can not be less than Minimum Wages in terms of Notification as issued by the State Government. In the state of West Bengal,the MW Notification stipulates that entire money i.e minimum wages as declared is basic & da.
To be on the safer side it is advisable to follow MW Actas well as MW Notification. Most of the small companies shows lesser basic/da salary/wages with a view to paying lesser amount of payment of employer's PF contribution @13.61 because PF contribution is calculated on basic/ da.
You may take up the matter with your top management and make them understand the legal position to avoid future litigation / liabilities.
Sibabrata.Majumdar
Management Consultant Legal & HR
From India, Calcutta
Dear CiteHR Members,
Mr. S.Mujamdar;s observation is very timely since some Managements do not ensure to cover Min.Wages even after adding Basic plus DA especially; in the lower level employees. When Labour & PF authorities inspects, they have found the violation i.e., deficiency of Min.wages even after adding both Basic plus DA and penalised the employer. Hence, it is safer to check them and fix Basic plus DA little above the Minimum
From India, Bangalore
Mr. S.Mujamdar;s observation is very timely since some Managements do not ensure to cover Min.Wages even after adding Basic plus DA especially; in the lower level employees. When Labour & PF authorities inspects, they have found the violation i.e., deficiency of Min.wages even after adding both Basic plus DA and penalised the employer. Hence, it is safer to check them and fix Basic plus DA little above the Minimum
From India, Bangalore
There is no hard and fast rule for fixation of Basic Pay in the Act.
One should pay minimum wages fixed by the Govt.
Basic Pay fixed by the company according to their policies.
There is no minimum level fixed in any act. But according to the Position in the company/cadre, they will fix Basic. Normally it will be 50%.
But in some cases of field/marketing jobs, the basic will be less and the allowances are more.
From India, Hyderabad
One should pay minimum wages fixed by the Govt.
Basic Pay fixed by the company according to their policies.
There is no minimum level fixed in any act. But according to the Position in the company/cadre, they will fix Basic. Normally it will be 50%.
But in some cases of field/marketing jobs, the basic will be less and the allowances are more.
From India, Hyderabad
If your management says that 12% on basic should not beyond Rs 150/- which means the basic should not be beyond Rs. 1250/- which is Rs. 41.66 per day. That means your employer is asking you design the salary below the MWA guidelines, please convince your management or you will be in big trouble
From India, Ahmadabad
From India, Ahmadabad
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