Dear Members,
Greetings.
Please advise on the following: We have contract employees under a contractor. One employee is resigning. His wage is $500/day. We have not shown the break-up as Basic, DA in the muster roll. We have shown it as $500 only. Now, on which amount should we calculate gratuity, as the minimum wage is $285.33 (Basic + DA)? Should we calculate it on $500 or $285.33? Expecting valuable advice.
Regards, Nishant
From India, Ahmadabad
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Greetings.
Please advise on the following: We have contract employees under a contractor. One employee is resigning. His wage is $500/day. We have not shown the break-up as Basic, DA in the muster roll. We have shown it as $500 only. Now, on which amount should we calculate gratuity, as the minimum wage is $285.33 (Basic + DA)? Should we calculate it on $500 or $285.33? Expecting valuable advice.
Regards, Nishant
From India, Ahmadabad
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Hi Nishant, Greetings of the day!!! Please share on which amount you are Deducting PF & calculated Bonus amount ? and please share where have you derived 285.33 Rs ?
From India, Pune
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182From India, Pune
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Hello,
First, you need to finalize the breakup for his daily wages (Rs. 500/-). If the Basic + DA (which you have finalized) is more than the minimum wages, then gratuity is payable as per the finalized Basic + DA; else, as per the minimum wages.
Best wishes.
From India, Nasik
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First, you need to finalize the breakup for his daily wages (Rs. 500/-). If the Basic + DA (which you have finalized) is more than the minimum wages, then gratuity is payable as per the finalized Basic + DA; else, as per the minimum wages.
Best wishes.
From India, Nasik
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Mr. Nishant,
You have clearly mentioned that you retained a contract employee on a daily rate of Rs. 500/- per day without any bifurcations like basic/DA or any other components. As such, compliance, if any, under EPF must have been made on the gross wage of Rs. 500/- per day, and you are liable to pay gratuity on the gross amount, i.e., Rs. 500/- per day and not on the minimum wages of Rs. 285.33.
P K Sharma
From India, Delhi
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You have clearly mentioned that you retained a contract employee on a daily rate of Rs. 500/- per day without any bifurcations like basic/DA or any other components. As such, compliance, if any, under EPF must have been made on the gross wage of Rs. 500/- per day, and you are liable to pay gratuity on the gross amount, i.e., Rs. 500/- per day and not on the minimum wages of Rs. 285.33.
P K Sharma
From India, Delhi
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I could not understand your query properly. Please elaborate so as to provide an appropriate view. You have mentioned that you have contract employees under a contractor. For any statutory obligations, the contractor is liable, and if there is a default, then only the principal employers come into the picture. Secondly, whether the employees of the contractor have completed 5 years of continuous service, and that too at your site.
From India, Ahmadabad
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From India, Ahmadabad
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