Hi,
Recently, the Government of Maharashtra has released two MW notifications, i.e., Minimum Wages (Basic wages) notification for the period July '19 to December '19 and Minimum Wages DA (Special Allowance) for the period July '19 to December '19 for the shops & establishment category. After considering the Minimum wages notifications (Basic and DA), please advise whether we need to restructure wages as per the PF amendment issued in April '19 (Cases where Gross wages are higher than minimum wages).
For example:
1) The minimum wages for the Shops & Establishment category for an Unskilled employee is Rs. 12,623 (Basic - Rs. 11,632 + DA - Rs. 390 + HRA - Rs. 601), and his Gross wages till June '19 were Rs. 16,700.00. Kindly let me know how wages will be restructured in this case (PF amendment, HRA, and Attendance Bonus exempted from PF calculation).
2) In cases where Gross Wages are more than Rs. 25,000, do we need to restructure wages for such contractors? With respect to the Maharashtra DA notification for the July '19 to December '19 period, will this be applicable to other categories of Contractor staff as well because the DA mentioned in the Jan '19 to June '19 MW notification and the current DA notification are different.
Thanks & Regards,
Kamlesh Makwana
M - 8879700991
From India, Mumbai
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1Recently, the Government of Maharashtra has released two MW notifications, i.e., Minimum Wages (Basic wages) notification for the period July '19 to December '19 and Minimum Wages DA (Special Allowance) for the period July '19 to December '19 for the shops & establishment category. After considering the Minimum wages notifications (Basic and DA), please advise whether we need to restructure wages as per the PF amendment issued in April '19 (Cases where Gross wages are higher than minimum wages).
For example:
1) The minimum wages for the Shops & Establishment category for an Unskilled employee is Rs. 12,623 (Basic - Rs. 11,632 + DA - Rs. 390 + HRA - Rs. 601), and his Gross wages till June '19 were Rs. 16,700.00. Kindly let me know how wages will be restructured in this case (PF amendment, HRA, and Attendance Bonus exempted from PF calculation).
2) In cases where Gross Wages are more than Rs. 25,000, do we need to restructure wages for such contractors? With respect to the Maharashtra DA notification for the July '19 to December '19 period, will this be applicable to other categories of Contractor staff as well because the DA mentioned in the Jan '19 to June '19 MW notification and the current DA notification are different.
Thanks & Regards,
Kamlesh Makwana
M - 8879700991
From India, Mumbai
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Hi,
Recently, the Government of Maharashtra has released two MW notifications, i.e., Minimum Wages (Basic wages) notification for the period July '19 to December '19 and Minimum Wages DA (Special Allowance) for the period July '19 to December '19 for shops and establishment category. After considering the Minimum wages notifications (Basic and DA), please advise whether we need to restructure wages as per the PF amendment issued in April '19 (Cases where Gross wages are higher than minimum wages).
Example:
1) Minimum wages for Shops and Establishment category for Un-skilled employees are Rs.12,623 (Basic-Rs.11632 + DA- Rs.390+ HRA-Rs.601), and his Gross wages till June '19 were Rs. 16,700.00. Kindly let me know how wages will be restructured in this case (PF amendment, HRA, and Attendance Bonus exempted from PF calculation).
2) In cases where Gross Wages are more than Rs.25,000, do we need to restructure wages for such contractors?
With respect to the Maharashtra DA notification for the July '19 to December '19 period, will this be applicable to other categories of Contractor staff as well because DA mentioned in Jan '19 to June '19 MW notification and current DA notification are different. Kindly clarify the above points.
Thanks and Regards, Kamlesh Makwana M- 8879700991
From India, Mumbai
Acknowledge(0)Amend(0)
Recently, the Government of Maharashtra has released two MW notifications, i.e., Minimum Wages (Basic wages) notification for the period July '19 to December '19 and Minimum Wages DA (Special Allowance) for the period July '19 to December '19 for shops and establishment category. After considering the Minimum wages notifications (Basic and DA), please advise whether we need to restructure wages as per the PF amendment issued in April '19 (Cases where Gross wages are higher than minimum wages).
Example:
1) Minimum wages for Shops and Establishment category for Un-skilled employees are Rs.12,623 (Basic-Rs.11632 + DA- Rs.390+ HRA-Rs.601), and his Gross wages till June '19 were Rs. 16,700.00. Kindly let me know how wages will be restructured in this case (PF amendment, HRA, and Attendance Bonus exempted from PF calculation).
2) In cases where Gross Wages are more than Rs.25,000, do we need to restructure wages for such contractors?
With respect to the Maharashtra DA notification for the July '19 to December '19 period, will this be applicable to other categories of Contractor staff as well because DA mentioned in Jan '19 to June '19 MW notification and current DA notification are different. Kindly clarify the above points.
Thanks and Regards, Kamlesh Makwana M- 8879700991
From India, Mumbai
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Respected sir,
We are employees of the credit co-operative society in Pashan, Pune. The Board of Directors of our society has given us a special allowance as per the circular published by the Maharashtra Commissioner of Labour in January and July in Mumbai. This allowance falls under the shop and establishment category.
However, on July 24, 2019, the government revised the minimum wage for members working in the Shop and Establishment sector. Consequently, the special allowance was also revised on August 5, 2019. The circular mentions two amounts. The first amount is Rs. 4182 from July 1, 2019, to July 23, 2019, and the new amount is ₹390 from July 24, 2019, to December 31, 2019.
Following this, we requested our Board of Directors to merge the old special allowance into the basic pay, but they did not agree to this proposal. Could you please provide details showing that the Maharashtra government merged the consolidated ₹4182 special allowance into the basic pay during the revision of the minimum wage for Shop and Establishment category employees?
Please help, sir.
From India, Pune
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We are employees of the credit co-operative society in Pashan, Pune. The Board of Directors of our society has given us a special allowance as per the circular published by the Maharashtra Commissioner of Labour in January and July in Mumbai. This allowance falls under the shop and establishment category.
However, on July 24, 2019, the government revised the minimum wage for members working in the Shop and Establishment sector. Consequently, the special allowance was also revised on August 5, 2019. The circular mentions two amounts. The first amount is Rs. 4182 from July 1, 2019, to July 23, 2019, and the new amount is ₹390 from July 24, 2019, to December 31, 2019.
Following this, we requested our Board of Directors to merge the old special allowance into the basic pay, but they did not agree to this proposal. Could you please provide details showing that the Maharashtra government merged the consolidated ₹4182 special allowance into the basic pay during the revision of the minimum wage for Shop and Establishment category employees?
Please help, sir.
From India, Pune
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Hi,
I need the minimum wages notification of Maharashtra state in English with full details like Basic, HRA, and Special Allowance. Actually, we have only received the special allowance notification. It would be a great help to me if somebody could forward the full details.
Regards, Dwarika P. Nautiyal
From India, New Delhi
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I need the minimum wages notification of Maharashtra state in English with full details like Basic, HRA, and Special Allowance. Actually, we have only received the special allowance notification. It would be a great help to me if somebody could forward the full details.
Regards, Dwarika P. Nautiyal
From India, New Delhi
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Dear Kamlesh, Anamik, Nautiyal,
Please find attached Excel sheets showing Zonewise Minimum Wages for Maharashtra for the period from 1st January, 2020 to 30th June, 2020 for all Scheduled Employments. If you prepare your payroll based on the attached workings applicable to your industry (e.g., Engineering, S&E, Automobiles, etc.), your problem will be solved.
Kamlesh: You may display Minimum Wages based on the category of Employee (Skilled, Semi-skilled, Unskilled). The excess amount you pay above the Minimum Wage can be shown as a Variable Allowance. Whenever the Minimum Wage increases, you can reduce the Variable Allowance and maintain the salary at INR 20K, 25K, 30K, etc.
Regarding PF deductions exceeding Rs.15K, you can limit the contribution to the PF Ceiling amount of Rs.15K, including all allowances except HRA, Overtime, Bonus, etc.
Anonymous (Pashan): You can pay salaries as per the revised Basic and Special Allowance applicable to Shops and Establishments effective from 24th July 2019, and your problem will be resolved.
Nautiyal: You can pay the revised salary as per the attached sheet and your Scheduled Employment.
Regards, Suresh
From India, Thane
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Please find attached Excel sheets showing Zonewise Minimum Wages for Maharashtra for the period from 1st January, 2020 to 30th June, 2020 for all Scheduled Employments. If you prepare your payroll based on the attached workings applicable to your industry (e.g., Engineering, S&E, Automobiles, etc.), your problem will be solved.
Kamlesh: You may display Minimum Wages based on the category of Employee (Skilled, Semi-skilled, Unskilled). The excess amount you pay above the Minimum Wage can be shown as a Variable Allowance. Whenever the Minimum Wage increases, you can reduce the Variable Allowance and maintain the salary at INR 20K, 25K, 30K, etc.
Regarding PF deductions exceeding Rs.15K, you can limit the contribution to the PF Ceiling amount of Rs.15K, including all allowances except HRA, Overtime, Bonus, etc.
Anonymous (Pashan): You can pay salaries as per the revised Basic and Special Allowance applicable to Shops and Establishments effective from 24th July 2019, and your problem will be resolved.
Nautiyal: You can pay the revised salary as per the attached sheet and your Scheduled Employment.
Regards, Suresh
From India, Thane
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The Maharashtra Minimum Wages VDA Notification 1st January 2020 (1) (1).pdf