For the calculation of minimum wages, can payment of Bonus, Gratuity and employer part of EPF is also taken in the calculation?
From India, Lucknow
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From India, Lucknow
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No. In order to establish that the employer is paying notified minimum wages, only the fixed gross wages can be considered. The bonus, which is an annual payment, employer contribution to EPF or ESI (which is a statutory responsibility of the employer), and gratuity (which is again a responsibility of the employer, with the payment happening only when the employee leaves after a minimum service of five years) cannot be put together as part of wages. Even incentives, the payment of which is dependent on the occurrence of certain events or meeting targets, will be outside the scope of wages for deciding compliance with minimum wages.
From India, Kannur
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4761From India, Kannur
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SALARY SHEET CALCULATION.xls