dear depak minimum wages act aplicable on every person those who works in an organisation. In contractor worker too
From India, Angul
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3From India, Angul
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There is one term COLA - i.e. Cost of Living Allowance. Whether it is a term defined under the Indian Payment of Wages Act? If not, some companies bifurcate wages such as Basic + COLA + HRA. Is it permissible to use the word COLA? The term Dearness Allowance is defined in the Act, but how can one assume that COLA is the same term as Dearness Allowance unless it is specifically defined under the Act.
Can anyone enlighten me on this confusion? If the term COLA can be used as it is, what are the rules pertaining to fixing COLA under Indian labor laws? Quick response is solicited. Thanks and regards to all reader friends.
From India, Surat
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Can anyone enlighten me on this confusion? If the term COLA can be used as it is, what are the rules pertaining to fixing COLA under Indian labor laws? Quick response is solicited. Thanks and regards to all reader friends.
From India, Surat
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Dear Friends,
After considering all the discussions above, it is clear that they are correct from the market perspective or from the perspective of companies bifurcating minimum wages. However, it is important to note that according to labor law, Minimum Wages comprise Basic Wage and Dearness Allowance and should not be further divided into any other components.
Yesterday, I met with the Labor Commissioner regarding a Gratuity case, where we had segmented the minimum wage or salary of the employee into different categories, but the basic wage was below the minimum wage stipulated by law. The Commissioner candidly stated that the minimum wage refers solely to the basic wage of an employee and not any additional components, and that Gratuity must be calculated based on the prescribed minimum wage.
In light of the discussions above, I would like to emphasize that the minimum wage corresponds to the basic wage of the employee only. If Dearness Allowance is to be paid, it should be added to the Basic Wage to determine the minimum wage.
If there are any changes or mistakes in the above information, please feel free to discuss and share.
Regards,
Nandan Negi
From India, New Delhi
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After considering all the discussions above, it is clear that they are correct from the market perspective or from the perspective of companies bifurcating minimum wages. However, it is important to note that according to labor law, Minimum Wages comprise Basic Wage and Dearness Allowance and should not be further divided into any other components.
Yesterday, I met with the Labor Commissioner regarding a Gratuity case, where we had segmented the minimum wage or salary of the employee into different categories, but the basic wage was below the minimum wage stipulated by law. The Commissioner candidly stated that the minimum wage refers solely to the basic wage of an employee and not any additional components, and that Gratuity must be calculated based on the prescribed minimum wage.
In light of the discussions above, I would like to emphasize that the minimum wage corresponds to the basic wage of the employee only. If Dearness Allowance is to be paid, it should be added to the Basic Wage to determine the minimum wage.
If there are any changes or mistakes in the above information, please feel free to discuss and share.
Regards,
Nandan Negi
From India, New Delhi
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Dear Friends,
As per the above discussion, all viewpoints are correct from a market perspective or in terms of companies bifurcating minimum wages. However, according to labor law, it is noted that Minimum Wages are equal to Basic Wage + Dearness Allowance and should not be further bifurcated in the minimum wages apart from these two components.
Yesterday, I was in front of the Labour Commissioner for a Gratuity case. We had divided the minimum wage or salary of the employee into different categories, but the basic wage was lower than the minimum wage mandated by the law.
He candidly mentioned that the minimum wage refers to the basic wage of an employee, not other components. Therefore, we are required to pay the Gratuity amount based on the prescribed minimum wages.
In conclusion, from the above discussion, I intend to emphasize that the minimum wage corresponds to the basic wage of the employee solely, or if Dearness Allowance is included, we can sum up the Basic and Dearness Allowance as the minimum wage.
If there are any changes or mistakes, please feel free to discuss and comment.
Regards,
Nandan Negi
From India, New Delhi
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As per the above discussion, all viewpoints are correct from a market perspective or in terms of companies bifurcating minimum wages. However, according to labor law, it is noted that Minimum Wages are equal to Basic Wage + Dearness Allowance and should not be further bifurcated in the minimum wages apart from these two components.
Yesterday, I was in front of the Labour Commissioner for a Gratuity case. We had divided the minimum wage or salary of the employee into different categories, but the basic wage was lower than the minimum wage mandated by the law.
He candidly mentioned that the minimum wage refers to the basic wage of an employee, not other components. Therefore, we are required to pay the Gratuity amount based on the prescribed minimum wages.
In conclusion, from the above discussion, I intend to emphasize that the minimum wage corresponds to the basic wage of the employee solely, or if Dearness Allowance is included, we can sum up the Basic and Dearness Allowance as the minimum wage.
If there are any changes or mistakes, please feel free to discuss and comment.
Regards,
Nandan Negi
From India, New Delhi
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Dear All,
I hope the attached order regarding the restriction and bifurcation of PF wages below Minimum Wages from the RPFC Haryana serves your purpose.
Deepak Behl
Piyush Consultancy Services (Labour Laws Consultant)
Ph: 9811397722
From India, Delhi
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I hope the attached order regarding the restriction and bifurcation of PF wages below Minimum Wages from the RPFC Haryana serves your purpose.
Deepak Behl
Piyush Consultancy Services (Labour Laws Consultant)
Ph: 9811397722
From India, Delhi
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Dear Seniors,
Please read the Swastik73 box. All allowances are included in the Wages definition. So, we can bifurcate the minimum wages (this is my view). However, the lawmakers are confused about many things in labor law. Labor laws should be revised without any loopholes.
Warm Regards,
Suthanthira Selvan
From India, Madras
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Please read the Swastik73 box. All allowances are included in the Wages definition. So, we can bifurcate the minimum wages (this is my view). However, the lawmakers are confused about many things in labor law. Labor laws should be revised without any loopholes.
Warm Regards,
Suthanthira Selvan
From India, Madras
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Dear all,
If we go by the description of the regulation that was passed for wages, it means all the elements providing monetary benefits to the employees, including Basic, HRA, Conv., all must be included, and so does the wage could be bifurcated.
If you go by the notification from the EPFO: we can't just bifurcate the minimum wage for the purpose of reducing the PF deduction. These acts are meant for providing long-term benefits to the employees. The PF office could force you to deduct the PF on the minimum wage and could also take legal action for that.
This rule is applicable for companies covered under the shop act as well, as per sections 3 and 4 of the minimum wage act, stating that basic plus dearness allowance are not amenable to split up.
Thanks and regards,
Himanshu Guleria
From India, Bangalore
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If we go by the description of the regulation that was passed for wages, it means all the elements providing monetary benefits to the employees, including Basic, HRA, Conv., all must be included, and so does the wage could be bifurcated.
If you go by the notification from the EPFO: we can't just bifurcate the minimum wage for the purpose of reducing the PF deduction. These acts are meant for providing long-term benefits to the employees. The PF office could force you to deduct the PF on the minimum wage and could also take legal action for that.
This rule is applicable for companies covered under the shop act as well, as per sections 3 and 4 of the minimum wage act, stating that basic plus dearness allowance are not amenable to split up.
Thanks and regards,
Himanshu Guleria
From India, Bangalore
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Dear All,
The situation for Deepak still prevails. Is the company's bifurcation of the minimum wage amount subject to legal action, or are they on the safe side?
In terms of adhering to Labour Laws, should we split the minimum wages (Can we pay the EPF contribution on the minimum wages or on the bifurcated minimum wages as Basic)? Please suggest, as it has been a bone of contention for many of us for so long.
Thanks,
Manish Gupta
From India, Ghaziabad
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The situation for Deepak still prevails. Is the company's bifurcation of the minimum wage amount subject to legal action, or are they on the safe side?
In terms of adhering to Labour Laws, should we split the minimum wages (Can we pay the EPF contribution on the minimum wages or on the bifurcated minimum wages as Basic)? Please suggest, as it has been a bone of contention for many of us for so long.
Thanks,
Manish Gupta
From India, Ghaziabad
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