Dear All,
I am working with a manufacturing company where they have 40 employees on the company payroll, but their salaries are in the range of 4500 to 6000. As per the PF Act, the minimum basic should be in accordance with the minimum wages act, and these workers' current basic is 3000. If we restructure the salary, then all costs will increase.
Please suggest the best way to handle this situation.
Thanks and regards,
Sphurti
HR Executive
From India, Mumbai
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I am working with a manufacturing company where they have 40 employees on the company payroll, but their salaries are in the range of 4500 to 6000. As per the PF Act, the minimum basic should be in accordance with the minimum wages act, and these workers' current basic is 3000. If we restructure the salary, then all costs will increase.
Please suggest the best way to handle this situation.
Thanks and regards,
Sphurti
HR Executive
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
If you have not complied with the Minimum Wages Act, it will have a retrospective effect, i.e., you need to calculate it from the date of default and pay the employee accordingly. You also have to pay PF arrears with interest.
However, for a safer side, at least make their wages as per the Minimum Wages Act and start paying them. Accordingly, deduct the PF too. Retrospective cost implications will be very high.
From India, Mumbai
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88If you have not complied with the Minimum Wages Act, it will have a retrospective effect, i.e., you need to calculate it from the date of default and pay the employee accordingly. You also have to pay PF arrears with interest.
However, for a safer side, at least make their wages as per the Minimum Wages Act and start paying them. Accordingly, deduct the PF too. Retrospective cost implications will be very high.
From India, Mumbai
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Basic 4 pf.pdf