Dear Members,
Greetings
Please advise on below: We have contract employees under a contractor. One employee is resigning.His Wages is 500/day.we have not shown the break-up as Basic ,DA in the muster roll. We have shown as 500/-only.Now on which amount we should calculate gratuity as Minimum wages is 285.33/only.(Basic +DA) Whether to calculate on 500/- or 285.33/-? Expecting valuable advise.
Regards Nishant
From India, Ahmadabad
Greetings
Please advise on below: We have contract employees under a contractor. One employee is resigning.His Wages is 500/day.we have not shown the break-up as Basic ,DA in the muster roll. We have shown as 500/-only.Now on which amount we should calculate gratuity as Minimum wages is 285.33/only.(Basic +DA) Whether to calculate on 500/- or 285.33/-? Expecting valuable advise.
Regards Nishant
From India, Ahmadabad
Hi Nishant, Greetings of the day!!! Please share on which amount you are Deducting PF & calculated Bonus amount ? and please share where have you derived 285.33 Rs ?
From India, Pune
175From India, Pune
Hello,
First you need to finalize break up for his daily wages (Rs.500/-). If the Basic +DA, (which you have finalized) is more than minimum wages, then gratuity is payable as per finalized Basic + DA; else as per minimum wages.
best wishes.
From India, Nasik
First you need to finalize break up for his daily wages (Rs.500/-). If the Basic +DA, (which you have finalized) is more than minimum wages, then gratuity is payable as per finalized Basic + DA; else as per minimum wages.
best wishes.
From India, Nasik
Mr. Nishant,
You have clearly mentioned that you retained contract employee on daily rate of Rs.500/- per day without any bifurcations like basic/da or any other component.
As such compliance if any under EPF must have made on the gross wage of Rs.500/- per day and you are liable to pay gratuity on gross amount i.e. Rs.500/- per day and not on minimum wages of Rs.285.33.
P K Sharma
From India, Delhi
You have clearly mentioned that you retained contract employee on daily rate of Rs.500/- per day without any bifurcations like basic/da or any other component.
As such compliance if any under EPF must have made on the gross wage of Rs.500/- per day and you are liable to pay gratuity on gross amount i.e. Rs.500/- per day and not on minimum wages of Rs.285.33.
P K Sharma
From India, Delhi
Could not understand your query properly please elaborate so as to give appropriate view. You have mentioned that you have contract employees under a contractor so for any statutory the contractor is liable and if defaulted then only the principle employers come into picture secondly whether the employee of the contractor has completed 5 years of continuous service, and that too at your site.
From India, Ahmadabad
From India, Ahmadabad
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