Dear Seniors,
As per Section 1(6) of the Payment of Wages Act, the ceiling limit is Rs. 18,000. If the salary/wages exceed Rs. 18,000, the act will not be applicable to that employee/workers. Please clarify whether this ceiling limit is for salary (Basic plus DA), gross salary, or net salary.
Regards,
Ashish
From India, Jaipur
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As per Section 1(6) of the Payment of Wages Act, the ceiling limit is Rs. 18,000. If the salary/wages exceed Rs. 18,000, the act will not be applicable to that employee/workers. Please clarify whether this ceiling limit is for salary (Basic plus DA), gross salary, or net salary.
Regards,
Ashish
From India, Jaipur
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Under Section 2(vi), wages have been given a very broad meaning. It means it will include all remuneration due to any worker or employee if the terms of the contract are fulfilled. It will include any remuneration under an award or settlement, remuneration in respect of overtime, and any other sum the employee is entitled to receive as wages. However, this will not include HRA and perquisites.
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From India, Kolkata
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186See this for total Indian Labour Laws & Shram Suvidha Simplified: [http://www.shramsamadhan.com/](http://www.shramsamadhan.com/)
From India, Kolkata
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Dear Ashish,
Every act has its own meaning of wages. Like the Salary Act, wages mean your gross salary. Similarly, under the bonus and PF acts, wages consist of Basic + DA. Therefore, for PF calculations, you need to consider the Basic + DA. If the employee's wage (Basic + DA) exceeds 18K, then it depends on the employee whether they want PF liability or seek exemption from PF. In such cases, the employee needs to write a request letter to the HR department for PF exemption and fill out the PF exemption form (Form 11) in accordance with social compliance.
Regards,
Vipin Singh
H.R. Officer & Recruiter
9923570399
From India, Mumbai
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Every act has its own meaning of wages. Like the Salary Act, wages mean your gross salary. Similarly, under the bonus and PF acts, wages consist of Basic + DA. Therefore, for PF calculations, you need to consider the Basic + DA. If the employee's wage (Basic + DA) exceeds 18K, then it depends on the employee whether they want PF liability or seek exemption from PF. In such cases, the employee needs to write a request letter to the HR department for PF exemption and fill out the PF exemption form (Form 11) in accordance with social compliance.
Regards,
Vipin Singh
H.R. Officer & Recruiter
9923570399
From India, Mumbai
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Basic + DA is typically the definition of wages unless otherwise specified. in this case it is Basic + DA.
From India, Delhi
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From India, Delhi
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PAYMENT OF WAGES ACT 2009.doc