As per factory Act, every workers get one day weekly off in every 6 days of work. Understand IR team given an opinion, that minimum wages workers will not be paid any employer statutory contribution against weekly off. They will get only statutory contribution like PF,ESIC, EL & PH on 26 days worked.
Request you to give your advise whether employer statutory contribution is to be paid on weekly off or not ?
From India, Bhubaneswar
Request you to give your advise whether employer statutory contribution is to be paid on weekly off or not ?
From India, Bhubaneswar
The Factories Act only says that there shall be given one day rest after 6 days' continuous work. The Act does not say that it should be paid weekly off. Many companies calculate the salary for 30/31 days. In such cases, it is understood that Sunday wages is included. If so, contribution to ESI and PF should be for 30/31 days. At the same time, if the workers are paid for 26 days only, how pF and ESI be contributed for 30/31 days?
From India, Kannur
4245From India, Kannur
Dear Ananta,
For more clarities would also like to refer to Section 23 (4) of the Minimum Wages (Central) Rules,1950 which says:
23(4) PROVIDED that where the minimum daily rate of wages of the employee as notified
under the Act has been worked out by dividing the minimum monthly rate of wages by twenty-six, or where the actual daily rate of wages of the employee has been worked out by dividing the monthly rate of wages by twenty-six and such actual daily rate of wages is not less than the notified minimum daily rate of wages of the employee, no wages for the rest day shall be payable ......
So you are also complying with the statutory provisions regarding weekly off days.
Regards,
From India, Delhi
For more clarities would also like to refer to Section 23 (4) of the Minimum Wages (Central) Rules,1950 which says:
23(4) PROVIDED that where the minimum daily rate of wages of the employee as notified
under the Act has been worked out by dividing the minimum monthly rate of wages by twenty-six, or where the actual daily rate of wages of the employee has been worked out by dividing the monthly rate of wages by twenty-six and such actual daily rate of wages is not less than the notified minimum daily rate of wages of the employee, no wages for the rest day shall be payable ......
So you are also complying with the statutory provisions regarding weekly off days.
Regards,
From India, Delhi
Dear Ananta
I am confused a little by your post.
Statutory dues is paid based on the actually salary. It has nothing to do with the number of days worked.
If the employee has a monthly salary, his PF, ESIC are paid on the basis of his total salary (gross salary) paid.
if he is absent for some days, salary is proportionately deducted and PF ESIC comes down accordingly.
For EL, the rule in factory is 1 day for every 20 days worked.
there is a debate on whether worked includes weekly off.
Generally accepted norm is that weekly off is included as days worked.
To that extent your policy is wrong.
From India, Mumbai
I am confused a little by your post.
Statutory dues is paid based on the actually salary. It has nothing to do with the number of days worked.
If the employee has a monthly salary, his PF, ESIC are paid on the basis of his total salary (gross salary) paid.
if he is absent for some days, salary is proportionately deducted and PF ESIC comes down accordingly.
For EL, the rule in factory is 1 day for every 20 days worked.
there is a debate on whether worked includes weekly off.
Generally accepted norm is that weekly off is included as days worked.
To that extent your policy is wrong.
From India, Mumbai
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf