Dear
More than the calculation part ,pls see the Airfreight Judgment.You can download from our CITE HR download section.Reading this will erase the doubts you have. More than the actual calculation Section 4 of the Minimum Wages Act has to be read plainly to understand it better.
With Regards
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Off : 044-42620864, 044-55874684,
From India, Bangalore
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252More than the calculation part ,pls see the Airfreight Judgment.You can download from our CITE HR download section.Reading this will erase the doubts you have. More than the actual calculation Section 4 of the Minimum Wages Act has to be read plainly to understand it better.
With Regards
E-mail :
Off : 044-42620864, 044-55874684,
From India, Bangalore
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Go through the attachment
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The user reply does not contain any information or attachment to address the original post's queries regarding splitting minimum wage components and supporting notifications. Kindly provide the necessary details to assist further.
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Hello All
After viewing the above statment my submission is as per minimum wages act
Minimum wages can be bifurcated into Basic+DA+HRA.... or Basic+HRA...
One gentlement has written it can be bifurcated in no of components as per -Supreme Court... I request pls. eleborate with refrence case...
As far as PF is concern in general practice it should be deducted on Basic+DA...not VDA ... and on the other hand we have to analysis definition of "basic wage" under Sec. 2 (b) "basic wages".....in accordance with the terms of the contract of employment... and which has been interpreted by the Inspection authorities in various ways...and register the case and harsh establishment under Sec. 7A...
PF ded. should be made not less then the minimum wages has no supportings of the dept., however, RPFC commissioner(state wise) inforced the circular which is also under protest...
BR//Gajendra Verma
From India
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After viewing the above statment my submission is as per minimum wages act
Minimum wages can be bifurcated into Basic+DA+HRA.... or Basic+HRA...
One gentlement has written it can be bifurcated in no of components as per -Supreme Court... I request pls. eleborate with refrence case...
As far as PF is concern in general practice it should be deducted on Basic+DA...not VDA ... and on the other hand we have to analysis definition of "basic wage" under Sec. 2 (b) "basic wages".....in accordance with the terms of the contract of employment... and which has been interpreted by the Inspection authorities in various ways...and register the case and harsh establishment under Sec. 7A...
PF ded. should be made not less then the minimum wages has no supportings of the dept., however, RPFC commissioner(state wise) inforced the circular which is also under protest...
BR//Gajendra Verma
From India
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies: - Minimum wages cannot be bifurcated into Basic+DA+HRA; it should be a single component. - PF deduction should be based on Basic+DA, not VDA. - PF deduction should be at least equal to the minimum wages. - No mention of a specific Supreme Court case to support the claims. Amendment: true
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I think Basic Colculation
Gross = 10000
Basic = gross * 40% (Minimum Wages Act 40% Colculation for the gross).
hra = gross * 30%
conveyance = gross * 10%
Medical Allowance = Gross * 10%
Special allowance = gross * 10%
Deduction
Employee
PF = Basic *12%
ESI = Total earning *1.75%
:no:
From India, Madras
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Gross = 10000
Basic = gross * 40% (Minimum Wages Act 40% Colculation for the gross).
hra = gross * 30%
conveyance = gross * 10%
Medical Allowance = Gross * 10%
Special allowance = gross * 10%
Deduction
Employee
PF = Basic *12%
ESI = Total earning *1.75%
:no:
From India, Madras
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies: 1. Minimum wage components should align with legal requirements. 2. Incorrect calculation methods for various components. 3. Deduction percentages are not accurate.
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Dear all,
The Airfreight judgement of the Hon'ble Supreme Court is right answer quoted by my friend. I feel that the spirit of law must be honoured and one should not be looking around the ways to escape it. There is not only PF Act but Acts like Payment of Bonus and Payment of Gratuity are also there which are paid on the components of Basic + DA. VDA is also DA. Basic+DA+VDA (if any) should be equivalent to or more than the minimum wage fixed by the government. Bifurcation is the prerogative of the employer but not at the cost of employee. Basic + DA has to be equivalent or more than the minimum wage fixed otherwise the employee will lose in terms of gratuity and bonus.
Regards
Jpratap
From India, Chandigarh
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The Airfreight judgement of the Hon'ble Supreme Court is right answer quoted by my friend. I feel that the spirit of law must be honoured and one should not be looking around the ways to escape it. There is not only PF Act but Acts like Payment of Bonus and Payment of Gratuity are also there which are paid on the components of Basic + DA. VDA is also DA. Basic+DA+VDA (if any) should be equivalent to or more than the minimum wage fixed by the government. Bifurcation is the prerogative of the employer but not at the cost of employee. Basic + DA has to be equivalent or more than the minimum wage fixed otherwise the employee will lose in terms of gratuity and bonus.
Regards
Jpratap
From India, Chandigarh
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(Fact Checked)-The user's reply contains accurate information regarding the components that should make up the minimum wage and the importance of honoring the spirit of the law. The mention of Acts like Payment of Bonus and Payment of Gratuity, as well as the requirement for Basic + DA to meet or exceed minimum wage, is correct. (1 Acknowledge point)
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Trisha is correct For minimum basic wages go to website of labour department. Regards Pankaj Chandan
From India, New delhi
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From India, New delhi
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(Fact Check Failed/Partial)-The reply provided is incorrect. The statement regarding PF deduction based on basic + DA salary aligning with minimum wages under PF Act is inaccurate. It is essential to follow the minimum wage structure mandated by respective state laws.
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Hi
Ans for your first quest Minimum wage cannot be splited to other componenets like spl allow etc.... it shd be strictly BASIC +DA.
For ur 2nd quest:Whatever the hike u give more than min wage its upto company wish to make it whole as BASIC +DA and spliting into other components.
i.e For eg if X shd gets min wage of 4030 but his actual salary we fix is 5000 We can do it as BASIC+DA:4030 the remaining amount 970 can be accommodated in any components.It can be done as BASIC +DA:5000 also its purely depends on comp policy.
Hope i have cleared. If im wrong pls correct me.
Regards,
Rohini
From India, Bangalore
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Ans for your first quest Minimum wage cannot be splited to other componenets like spl allow etc.... it shd be strictly BASIC +DA.
For ur 2nd quest:Whatever the hike u give more than min wage its upto company wish to make it whole as BASIC +DA and spliting into other components.
i.e For eg if X shd gets min wage of 4030 but his actual salary we fix is 5000 We can do it as BASIC+DA:4030 the remaining amount 970 can be accommodated in any components.It can be done as BASIC +DA:5000 also its purely depends on comp policy.
Hope i have cleared. If im wrong pls correct me.
Regards,
Rohini
From India, Bangalore
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(Fact Check Failed/Partial)-The user's reply is incorrect. According to labor laws in India, minimum wage cannot be split into components like HRA or special allowance. It should be Basic + DA. The entire amount above minimum wage can be allocated as per company policy.
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Salary Survey India, Online Wage Survey, Salary Survey by Paycheck India
From India, Bangalore
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From India, Bangalore
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(Fact Check Failed/Partial)-The user reply does not address the specific questions raised in the original post regarding the minimum wage components and government notifications. It is not relevant to the query.
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this is very confusing and not possible to justify with supporting however this is good that your are contributing pf to you employees
From India, Chandigarh
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From India, Chandigarh
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(Fact Check Failed/Partial)-The user's reply is incorrect. According to Indian labor laws, minimum wages should not be split into components like HRA or special allowance. Minimum wage must be a single amount inclusive of all components. It is mandatory to ensure that the minimum wage amount is met in the Basic + DA component. Splitting minimum wage is not permissible under the law.
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hi
Pf doesn`t say about minimum wages. it only says about basic+DA to be considered for PF calculation, however it is implied that you are stipulated to the min wages act which is also equally applicable to your factory. in any case PF inspector cannot demand the min wages comply
regards
robert
From India, Madras
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Pf doesn`t say about minimum wages. it only says about basic+DA to be considered for PF calculation, however it is implied that you are stipulated to the min wages act which is also equally applicable to your factory. in any case PF inspector cannot demand the min wages comply
regards
robert
From India, Madras
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(Fact Check Failed/Partial)-The user reply contains incorrect information regarding PF and minimum wages. Minimum wages compliance is essential, and PF authorities can indeed demand it. The reply needs correction.
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Splitting of minimum wages for PF in abeyance (1).pdf
Minimum Wages, ESI & PF.pps
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is inaccurate. Splitting minimum wage components like HRA or Special Allowance is not permissible. Basic + DA should meet or exceed the minimum wage. Amendment: Basic + DA must meet or exceed the minimum wage; no splitting allowed.