We as a Manufacturing unit have engaged 77 nos of operation and maintenance manpower (semi skilled, skilled and high skilled) under contractor with all valid statutory license as per legal provisions under CLRA Act. PE has given Work order on the basis of Cost + margin basis.
Scenario: Contractor has fixed the Gross wages in following structure: Basic (As per state minimum wages per day) + PL-2.56%(8/12/26) on basic + El-4.81%(15/12/26) on basic + Washing +Uniform+ conveyance+ Spl Allowances to arrive Gross Wages.
Query: Is it legal on the part of contractor to include PL & EL as the part of Gross Wages? as workmen are demanding leave against PL & EL or to be reimbursed separately once accumulation started over and above their monthly wages which is eligible as Factory Act of Chapter-III.
Is it in compliance as PL & EL is being paid in their monthly wages?
From India, Bhubaneswar
Scenario: Contractor has fixed the Gross wages in following structure: Basic (As per state minimum wages per day) + PL-2.56%(8/12/26) on basic + El-4.81%(15/12/26) on basic + Washing +Uniform+ conveyance+ Spl Allowances to arrive Gross Wages.
Query: Is it legal on the part of contractor to include PL & EL as the part of Gross Wages? as workmen are demanding leave against PL & EL or to be reimbursed separately once accumulation started over and above their monthly wages which is eligible as Factory Act of Chapter-III.
Is it in compliance as PL & EL is being paid in their monthly wages?
From India, Bhubaneswar
Hi,
Leave entitlement cannot be part of wages. It should be additional statutory benefit apart from fixed salary.
Both PL & EL are same leave. ( As per the Factories Act, the leave entitlement of the employees is termed as Earned Leaves or EL, whereas, under the Shops and Establishments Act, the entitled leaves are termed as Privilege Leaves or PL).
From India, Madras
948Leave entitlement cannot be part of wages. It should be additional statutory benefit apart from fixed salary.
Both PL & EL are same leave. ( As per the Factories Act, the leave entitlement of the employees is termed as Earned Leaves or EL, whereas, under the Shops and Establishments Act, the entitled leaves are termed as Privilege Leaves or PL).
From India, Madras
First of all PL & EL both are same. Many contractors are making invoice considering all cost. Because the contractor will be required to pay for leave days. Now the question is whether it should be claimed by the contractor along with monthly invoice or it will be separately paid.
It may be dealt in different ways. In one way, it is the responsibility of the contractor to take care every thing and the invoice is based on number of manpower engaged. Another way is the contractor will prepare invoice based on actuals days of payment and separate leave pay.
As per Factories act leave pay is the daily ordinary rate of wages which is monthly gross cash component not only the basic.
To my opinion every thing in employment one has to earned and employer has to spent - whether it is salary, leave, gratuity, bonus etc. all are conditional. Therefore, everything should be part of CTC.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
It may be dealt in different ways. In one way, it is the responsibility of the contractor to take care every thing and the invoice is based on number of manpower engaged. Another way is the contractor will prepare invoice based on actuals days of payment and separate leave pay.
As per Factories act leave pay is the daily ordinary rate of wages which is monthly gross cash component not only the basic.
To my opinion every thing in employment one has to earned and employer has to spent - whether it is salary, leave, gratuity, bonus etc. all are conditional. Therefore, everything should be part of CTC.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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PF on PL SC.doc