Dear seniors,
Good evening
Recently I have joined a company and from 15th March 2017, esic is applicable. It is basically a show room and comes under shops and establishment act.
All these days they are dividing total salary by 26 /27 days instead of month days calculation so as to cover up minimum wage requirements.
now they have agreed to use month days concept ie 30/ 31 days due to which total salary comes below minimum wages so my question is will there be any problem from minimum wages side as it is coming below the requirement. Please advice what would be the problems if I follow 30 days concept.
Thanks
Kishwar
From India , Ponda
1Good evening
Recently I have joined a company and from 15th March 2017, esic is applicable. It is basically a show room and comes under shops and establishment act.
All these days they are dividing total salary by 26 /27 days instead of month days calculation so as to cover up minimum wage requirements.
now they have agreed to use month days concept ie 30/ 31 days due to which total salary comes below minimum wages so my question is will there be any problem from minimum wages side as it is coming below the requirement. Please advice what would be the problems if I follow 30 days concept.
Thanks
Kishwar
From India , Ponda
you have to find out whether your Employees are engaged as per Appointment Letter on Daily Wage basis or Monthly Salary Basis? For Monthly rated Employees pay salary as mentioned in applicable Minimum Wages notification.For determining daily wages for Monthly rated Employee divide gross Salary by total Number of days in the respective month.
From India, New Delhi
From India, New Delhi
There are two legal ways to calculate daily wages. One, by dividing the declared wages by 26 days & two, by dividing wages by actual days of the month. In case of former, weekly off days will not be paid, in case of latter the weekly of days will have to be paid.
Now the Industrial Disputes Act is applicable to your show room. If you change method of calculation of wages for employees, you will be required to issue notice of change 21 days prior to affecting change as provided under section 9A of the Act. Generally no employee of show room will raise an industrial dispute but you need to be legally correct on this aspect.
if you are required to pay overtime at double the rate of wages then second way will save your costs.
From India, Mumbai
Now the Industrial Disputes Act is applicable to your show room. If you change method of calculation of wages for employees, you will be required to issue notice of change 21 days prior to affecting change as provided under section 9A of the Act. Generally no employee of show room will raise an industrial dispute but you need to be legally correct on this aspect.
if you are required to pay overtime at double the rate of wages then second way will save your costs.
From India, Mumbai
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ESIC Notification 15th of every Month.pdf