Dear All,
There is certain amount in minimum wages act in different states.
My query is that how do we build a CTC as per minimum wages.
a) Is the minimum wages which is Basic salary+ PF+ESI should be the CTC?
b) The basic salary should comply with minimum wages or the CTC should comply with the minimum wages?
Pls help
Thanks
Amit
From India, New Delhi
4There is certain amount in minimum wages act in different states.
My query is that how do we build a CTC as per minimum wages.
a) Is the minimum wages which is Basic salary+ PF+ESI should be the CTC?
b) The basic salary should comply with minimum wages or the CTC should comply with the minimum wages?
Pls help
Thanks
Amit
From India, New Delhi
Dear All,
There is certain amount in minimum wages act in different states.
My query is that how do we build a CTC breakup as per minimum wages.
a) Is the minimum wages which is Basic salary+ PF+ESI should be the CTC?
b) The basic salary should comply with minimum wages or the CTC breakup should comply with the minimum wages? Is this Industry specific.
Pls help
Thanks
Amit
From India, New Delhi
There is certain amount in minimum wages act in different states.
My query is that how do we build a CTC breakup as per minimum wages.
a) Is the minimum wages which is Basic salary+ PF+ESI should be the CTC?
b) The basic salary should comply with minimum wages or the CTC breakup should comply with the minimum wages? Is this Industry specific.
Pls help
Thanks
Amit
From India, New Delhi
The minimum wages means Basic + DA as prescribed under The Minimum Wages Act. PF and other statutory contributions does not form the part of minimum wages. The minimum wages rates are industry specific. Minimum wages Act has fixed the different minimum wages for various types of industries such as Engineering, Shops & Establishments, Hotels etc. Please check as to which category is applicable to your company and then find out the rates of minimum wages from the Act. Also in Maharashtra, 5% HRA on Basic + DA is must.
From India, Mumbai
From India, Mumbai
Mr. Manish Gadre
Sir,
You said minimum wages means Basic + DA.
In our Establishment we gets other allowances like Petrol allowance, Washing allowance, Telephone allowance, Conv., H. R. allowance.
Dose these other allowances + Basic + DA means Minimum Wages?
Please guide
Thanks
From India, Sholapur
Sir,
You said minimum wages means Basic + DA.
In our Establishment we gets other allowances like Petrol allowance, Washing allowance, Telephone allowance, Conv., H. R. allowance.
Dose these other allowances + Basic + DA means Minimum Wages?
Please guide
Thanks
From India, Sholapur
Sir,
You said minimum wages means Basic + DA.
In our Establishment we gets other allowances like Petrol allowance, Washing allowance, Telephone allowance, Conv., H. R. allowance.
Dose these other allowances + Basic + DA means Minimum Wages?
Please guide
Thanks............................................ ....???????
From India, New Delhi
You said minimum wages means Basic + DA.
In our Establishment we gets other allowances like Petrol allowance, Washing allowance, Telephone allowance, Conv., H. R. allowance.
Dose these other allowances + Basic + DA means Minimum Wages?
Please guide
Thanks............................................ ....???????
From India, New Delhi
Reference is drawn to the decision of the Apex Court the Supreme Court in (Air Frieght Ltd. V. State of Karnataka and others) reported in 1999(4) LLN 395. Reliance is place upon the following passage.
"It is one pay package. Neither the scheme nor any provisions of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same. Hence, in cases where employer is paying total sum which is higher than the minimum rates of wages fixed under the Act including the cost of living index (variable dearness allowance), he is not required to pay variable dearness allowance separately. However, that higher wages should be calculated as defined in Section 2(h) of the Act. Section 2(h) specifically provides that the value of the following items are not required to be computed for finding out whether employer pays minimum wages as prescribed under the Act: (i) the value of any house, accommodation, supply of light, water, medical care, or any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any pension fund or provident fund or under any scheme of social insurance;
(iii) any travelling allowance or the value of any travelling concession;
(iv) any sum paid to any person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuities payable on discharge.
But while deciding the question of payment of minimum wages, the Competent Authority is not required to bifurcate each component of the costs of each item taken into consideration for fixing minimum wages, as lump sum amount is determined for providing adequate remuneration to the workman so that he can sustain and maintain himself and his family and also preserve his efficiency as a worker. Dearness allowance is part and parcel of cost of necessities. In cases where the minimum rates of wages is linked up with variable dearness allowance, it would not mean that it is a separate component which is required to be paid separately where the employer pays a total pay package which is more than the prescribed minimum rate of wages. In the result, it is held that:
(1) The appellant-company would be covered by the expression "shops" and/or "commercial establishment" as it is carrying out various systematic commercial activities with profit motive and also it sells services on a retail basis.
(2) The notification issued under the Act prescribing minimum wages, applies to all kinds of shops and commercial establishments "big or small " and that payment of more than the prescribed minimum rates of wages is not relevant for deciding its applicability. It cannot be stated that as they are paying more than the prescribed minimum wages, the Act or notification would not be applicable. For determining whether they are paying minimum rates of wages or not, the amount paid for the value of items which are excluded under Section 2(h) of the Act is not to be taken into consideration. (3) Minimum rates of wages fixed under the Act is remuneration payable to the worker as one package of fixed amount. In cases where minimum wage is linked with the cost of living index, the amount paid on the basis of dearness allowance is not to be taken as an independent component of the minimum wages but as part and parcel of the process of computing the rates of minimum wages which is to be determined after taking into consideration the cost of various necessities. In this view of the matter, the order passed by the High Court holding that the State Government has fixed two separate categories of minimum rates of wages to be paid to the employees one basic and the other other allowance, that is, dearness allowance, is erroneous and is set aside.
The fitment has to be in the light of the above Judgment which is the "Law " on the subject .
rajanlawfirm
https://www.citehr.com/285737-legal-...-industry.html
From India, Madras
"It is one pay package. Neither the scheme nor any provisions of the Act provides that the rates of minimum wages are to be split up on the basis of the cost of each of the necessities taken into consideration for fixing the same. Hence, in cases where employer is paying total sum which is higher than the minimum rates of wages fixed under the Act including the cost of living index (variable dearness allowance), he is not required to pay variable dearness allowance separately. However, that higher wages should be calculated as defined in Section 2(h) of the Act. Section 2(h) specifically provides that the value of the following items are not required to be computed for finding out whether employer pays minimum wages as prescribed under the Act: (i) the value of any house, accommodation, supply of light, water, medical care, or any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any pension fund or provident fund or under any scheme of social insurance;
(iii) any travelling allowance or the value of any travelling concession;
(iv) any sum paid to any person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuities payable on discharge.
But while deciding the question of payment of minimum wages, the Competent Authority is not required to bifurcate each component of the costs of each item taken into consideration for fixing minimum wages, as lump sum amount is determined for providing adequate remuneration to the workman so that he can sustain and maintain himself and his family and also preserve his efficiency as a worker. Dearness allowance is part and parcel of cost of necessities. In cases where the minimum rates of wages is linked up with variable dearness allowance, it would not mean that it is a separate component which is required to be paid separately where the employer pays a total pay package which is more than the prescribed minimum rate of wages. In the result, it is held that:
(1) The appellant-company would be covered by the expression "shops" and/or "commercial establishment" as it is carrying out various systematic commercial activities with profit motive and also it sells services on a retail basis.
(2) The notification issued under the Act prescribing minimum wages, applies to all kinds of shops and commercial establishments "big or small " and that payment of more than the prescribed minimum rates of wages is not relevant for deciding its applicability. It cannot be stated that as they are paying more than the prescribed minimum wages, the Act or notification would not be applicable. For determining whether they are paying minimum rates of wages or not, the amount paid for the value of items which are excluded under Section 2(h) of the Act is not to be taken into consideration. (3) Minimum rates of wages fixed under the Act is remuneration payable to the worker as one package of fixed amount. In cases where minimum wage is linked with the cost of living index, the amount paid on the basis of dearness allowance is not to be taken as an independent component of the minimum wages but as part and parcel of the process of computing the rates of minimum wages which is to be determined after taking into consideration the cost of various necessities. In this view of the matter, the order passed by the High Court holding that the State Government has fixed two separate categories of minimum rates of wages to be paid to the employees one basic and the other other allowance, that is, dearness allowance, is erroneous and is set aside.
The fitment has to be in the light of the above Judgment which is the "Law " on the subject .
rajanlawfirm
https://www.citehr.com/285737-legal-...-industry.html
From India, Madras
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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