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Dear All,

Is it correct to include City Compensatory Allowance for calculating the PF? A subordinate's gross salary is Rs. 3,900/-; consisting of basic+DA+conveyance, etc. Is his salary meeting the definition of minimum wages? Shouldn't the basic+DA only be considered as the minimum wage?

Will a sweeper who comes and cleans the office daily for about an hour, and who is not on the payroll, be eligible for ESI? Often, he comes along with his wife to clean the place.

Are there any case laws on the subject?

T. S. A. Padmanabhan

From India, Delhi
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For Pf it is basic and DA but ESI in on gross salary . the sweeper also comes within the coverage of PF and ESI even though he is working for one hour
From India, Bangalore
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Minimum wage can be broken into 2 components only, i.e., Basic and DA. No further allowances are admissible within the same. Ideally, a sweeper should be on par with company employees.

The first question is: how do you determine the compensation for an hour of work daily.

Please read "Ethical Trading Initiative," especially the section meant for homeworkers. Then check out the work done by the Self-Employed Women's Association. Finally, the jigsaw puzzle shall fall into place after reading about government schemes meant for social inclusion of marginalized communities.

If you have further queries, feel free to write.

Email: suryavrat.rana@btopenworld.com

From India, Delhi
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In our organization, only basic pay and other components of salary like technical allowance, fixed personal allowance, which are counted for dearness allowance calculation, are counted for P.F calculation (if you mean the amount of PF contribution to be deducted from the salary). But such components like D.A, HRA, CONVEYANCE ALLOWANCE CITY COMPENSATORY ALLOWANCE ARE NOT INCLUDED FOR PF CALCULATION.

With regards, Aadhirai


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Hello friends,

PF is deducted ONLY on Basic + DA (not on CCA, etc). Secondly, if ESI/PF is deductible for a 1-hour daily working employee, then how are you going to maintain his attendance? In that case, do you have to give him one day leave for every 20 days? I think the sweeper who works just for one hour daily is not entitled to any PF/ESI.

Regards,
Rajeev Dixit

From India, Bangalore
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Dear All,

The point raised by Rajeev is very much valid. If we deploy casual labor for, say, even 10 days, then how can we maintain all the statutory requirements? Challans/registers!! Currently, we are undergoing the same problem of PF coverage over casual laborers. Anybody having a broader view on this issue?

Thank you.

From India, Nagpur
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Hi,

Shouldn't HR come out of the restrictions placed by law and do more for employees than what the law forces? This can better motivate employees.

In the meantime, read my latest post on Performance-Driven Culture.
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From India, Delhi
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Hi, great morning to all,

1) I want to know the concept of Multi ESI and PF.
2) The annual returns of ESI and PF.
3) Arrears handling with PF or ESI applicable option.
4) Employer code number management.
5) How to calculate the EMI in Loan settings.
6) The full details format of Leave management.

Can anyone help me out? Kindly send the answer to my email address: [mmani_ramnad@yahoo.co.in](mailto:mmani_ramnad@yahoo.co.in).

Thanks and regards,
Megala

From India, Madras
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