I have two questions as an HR fresher studying labor laws:
Hello, everyone. I was reading about the EPF Scheme and have a question. How is the retention allowance calculated for PF? I've noticed that many organizations provide the retention allowance either annually or semi-annually. Does the contribution amount change for the specific month in which the retention allowance is given?
Regarding the Code on Social Security 2020, are HR professionals currently using this for labor laws, or is it yet to be implemented?
From India, Mumbai
Hello, everyone. I was reading about the EPF Scheme and have a question. How is the retention allowance calculated for PF? I've noticed that many organizations provide the retention allowance either annually or semi-annually. Does the contribution amount change for the specific month in which the retention allowance is given?
Regarding the Code on Social Security 2020, are HR professionals currently using this for labor laws, or is it yet to be implemented?
From India, Mumbai
If you mean 'retaining allowance' I would say that it is an amount payable every month because retaining allowance is an allowance paid to workers whose service is 'retained' by the employer when there is no work. The situation is like this, that when there is no work for any reason, the establishment may declare lay off. But lay off (used as per Industrial Disputes Act and not in the new generation HR concept wherein lay off means retrenchment and not temporary discontinuance due to non availability of materials etc) may end in 45 days, but still the workers will not be given employment. In such scenario the workers will not be paid any wages. But some workers will be retained by paying an amount called retaining allowance. This allowance is just like wages and it will qualify for PF also.
Retention amount that you have found in HR theories is an amount paid every year as an incentive for not leaving the company. That will not come under the scope of wages/ salary at all.
Social Security Code has not been implemented. Therefore we are following the separate Acts for each situations only. Afterall, the new labour codes are modified versions of the existing Acts put in four BOOKS, and nothing else. Only a few changes are made, and that could have been possible even with an amendment to the existing Acts.
From India, Kannur
4238Retention amount that you have found in HR theories is an amount paid every year as an incentive for not leaving the company. That will not come under the scope of wages/ salary at all.
Social Security Code has not been implemented. Therefore we are following the separate Acts for each situations only. Afterall, the new labour codes are modified versions of the existing Acts put in four BOOKS, and nothing else. Only a few changes are made, and that could have been possible even with an amendment to the existing Acts.
From India, Kannur
I agree with the observations of Mr.Madhu. All the fiasco introducing 'Codes' by this regime are nothing but 'old wine' in new bottle, after some editing here and there, modifying few provisions slashing for reduction of pages with no clarity. By cutting down various provisions, making really a compendium, in the absence of detailed provisions in appropriate places it is going to be confusion when implementation dates of all these codes are notified.
From India, Bangalore
From India, Bangalore
Well said y Madhu & Kumar
There is difference between Retaining Allowance & Retention allowance. Don't get confused on the component of Retention Allowance that your organisation is paying.
Also Labour codes are not yet implemented and continue with the existing process only. There are high chances on implementation by next calendar year or financial year. Recently we conducted Webinars on the same and discussed in detail & if you need the recordings I can share
From India, Bangalore
There is difference between Retaining Allowance & Retention allowance. Don't get confused on the component of Retention Allowance that your organisation is paying.
Also Labour codes are not yet implemented and continue with the existing process only. There are high chances on implementation by next calendar year or financial year. Recently we conducted Webinars on the same and discussed in detail & if you need the recordings I can share
From India, Bangalore
To get the most current and specific information regarding these topics, especially any recent developments or changes, it's advisable to consult recent government notifications or legal updates, or seek guidance from legal or HR professionals who specialize in Indian labor laws and social security regulations.
Labor law consultant,
<a href="https://eggycar-game.com">Eggy Car</a>
From United Kingdom, London
Labor law consultant,
<a href="https://eggycar-game.com">Eggy Car</a>
From United Kingdom, London
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