Dear All,
I am working with manufacturing company where they have 40 employees on company payroll but there salaries are 4500 to 6000 range. and as per PF act the minimum basic should be as per minimum wages act , and these worker current basic is 3000/- , if we restructure the salary then all cost will be Increase.
Please suggest me best way in this situation.
Thanks and regards,
Sphurti
HR Executive.
From India, Mumbai
I am working with manufacturing company where they have 40 employees on company payroll but there salaries are 4500 to 6000 range. and as per PF act the minimum basic should be as per minimum wages act , and these worker current basic is 3000/- , if we restructure the salary then all cost will be Increase.
Please suggest me best way in this situation.
Thanks and regards,
Sphurti
HR Executive.
From India, Mumbai
Hi,
IF you have not complied with the minimum wages Act, it will have retrospective effect. i.e. you need to calculate it from the date of default and need to pay employee accordingly.
You also have to pay PF arrears with interest
However, for safer side, at least make their wages as per the Minimum Wages Act and start paying them. Accordingly deduct the PF too.
Retrospective cost implication will be very high.
From India, Mumbai
87IF you have not complied with the minimum wages Act, it will have retrospective effect. i.e. you need to calculate it from the date of default and need to pay employee accordingly.
You also have to pay PF arrears with interest
However, for safer side, at least make their wages as per the Minimum Wages Act and start paying them. Accordingly deduct the PF too.
Retrospective cost implication will be very high.
From India, Mumbai
Dear Sir,
We have paid PF upto March 2013 on the same basic of Rs. 3000/- now we don't want to increase the salary. other wise please suggest if we put them on contract or Voucher payments then what will be the formalities have to be completed.
From India, Mumbai
We have paid PF upto March 2013 on the same basic of Rs. 3000/- now we don't want to increase the salary. other wise please suggest if we put them on contract or Voucher payments then what will be the formalities have to be completed.
From India, Mumbai
Dear
If you are paying Gross salary more than minimum Wages and you have fixed basic salary less than minimum wages than there will be no issue ,But there should be an uniform policy in your organization.
Altough PF office is in to the process to claim the PF on minimum Wages but till date they have not implemented.
So you may continue you practice unless the PF office implement to pay the PF on minimum Wages.
Regards
Sanjeev Kwatra
From India, Delhi
If you are paying Gross salary more than minimum Wages and you have fixed basic salary less than minimum wages than there will be no issue ,But there should be an uniform policy in your organization.
Altough PF office is in to the process to claim the PF on minimum Wages but till date they have not implemented.
So you may continue you practice unless the PF office implement to pay the PF on minimum Wages.
Regards
Sanjeev Kwatra
From India, Delhi
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Basic 4 pf.pdf