Dear Sir,
Requesting all my seniors and brothers, please help me to resolve my query:
We hired an employee on our company payroll and deployed them at a client location in another state where we do not have any branch office. Please let me know which state's statutory compliance we have to follow and in which state's minimum wage salary should be paid to the employee. If we pay the wages according to the client's state, how do we comply with the professional tax, considering it is applicable in the client's state where we do not have any branch office?
Thank you.
From India, Delhi
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2Requesting all my seniors and brothers, please help me to resolve my query:
We hired an employee on our company payroll and deployed them at a client location in another state where we do not have any branch office. Please let me know which state's statutory compliance we have to follow and in which state's minimum wage salary should be paid to the employee. If we pay the wages according to the client's state, how do we comply with the professional tax, considering it is applicable in the client's state where we do not have any branch office?
Thank you.
From India, Delhi
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Dear Sahil,
When fixing statutory minimum wages for the scheduled employments under the Minimum Wages Act of 1948, the location or place of employment is an essential factor. In all matters pertaining to employment issues, generally, the place of work is the decisive factor in determining jurisdiction. Therefore, by whom and where the employee is recruited or appointed is immaterial, but only where and for whom his services are actually engaged determine his employment rights and benefits and his liability to local taxes like professional tax. Therefore, such an employee deputed to a client's site should be paid the minimum wages applicable to the client's state, and the professional tax should be deducted and paid over to the local authority of his place of employment.
From India, Salem
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When fixing statutory minimum wages for the scheduled employments under the Minimum Wages Act of 1948, the location or place of employment is an essential factor. In all matters pertaining to employment issues, generally, the place of work is the decisive factor in determining jurisdiction. Therefore, by whom and where the employee is recruited or appointed is immaterial, but only where and for whom his services are actually engaged determine his employment rights and benefits and his liability to local taxes like professional tax. Therefore, such an employee deputed to a client's site should be paid the minimum wages applicable to the client's state, and the professional tax should be deducted and paid over to the local authority of his place of employment.
From India, Salem
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Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls