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arv_r123
3

Hi all Cite HR members!!!!!!!!!
I m working in a pharmaceutical company and we need to recruit workers in semi skilled category. i am little bit confused in framing salary bifurcation of the workers. I know that we can not pay below minimum wages to them. I just need to know that the minimum wages should be consolidated amount of Basic and DA, but can we keep bifurcation in a way that the total salary bifurcation is above the minimum wages and keeping basic at the lower rate.
Is it necessary to bifurcate the whole salary in BASIC & DA and deduct PF on minimum wages. or can we keep the basic & DA low?????

From India, Visnagar
Madhu.T.K
4248

Minimum Wages fixed by the appropriate Govt (State Govt.) in respect of the semi skilled pharma employees shall consist of a Basic Rate and Dearness Allowance variable according to changes in cost of living index. You can pay a higher basic but you cannot fix a basic lower than that fixed by the Govt.
EPF is not not concerned about bifurcated wages but total wages/ salary should be either a consolidated amount or basic salary + DA - whether fixed or variable.
Regards,
Madhu.T.K

From India, Kannur
arun29478
3

Dear ARV,
You can refer to the notifaction by the state govt for clarity on minimum wages act. It gives you complete clarity in terms of BASIC, DA etc to be paid to the employee as per the skill level and industry. You will have to stick to the same. You are free to increase the amount but as the act suggests, its the minimum wages that the employee is eligible for.
Regards,
Arun

From India, Bangalore
arv_r123
3

Hello Madhu
First of all thanks for your comments.
The minimum wages in Gujarat for unskilled category is Rs. 105.20 per day, if we take 26 days salary it comes to around Rs. 2735/- per month. so is it means we have to give him 2735/- in Basic & DA and we can't give it in other heads like (HRA, Washing or education allowance)?
Another question is are the trainees also covered under the minimum wages act?
And Drivers are covered under semi skilled category or skilled category?

From India, Visnagar
mamta13joshi
Dear All, Could any body provide the following data, i shall very thankful to him :- Minimum wages in Gujrat,Karnataka, Tamil Naidu,Andhra pradesh, Kolkata,Maharastra

Madhu.T.K
4248

Dear arv,
Trainees other than those engaged as per Apprentice Act, 1961 are covered under the Minimum Wages Act. This is to prevent employing personnels as trainees with a view to detering their rights under any labour legislations. Till recently, all trainees other than apprentices were covered by EPF also. But with the verdict of Supreme Court on Campco's case, all trainees are exempted from EPF. However, no such ruling has been reported from ESI.
Categorisation of employees as Skilled, Semi Skilled and Un Skilled depend upon the respective notification and may not be uniform all over India. Therefore, interpretation of category of drivers shall be done judicially.
The special allowance shown in Maharashtra Minimum Wages will be replaced by Variable DA in Kerala wherein the VDA will change according to changes in the cost of living index which in turn will be notified by the Bureau of Economics and Statistics.
Regards,
Madhu.T.K

From India, Kannur
Madhu.T.K
4248

The categorisation as above relates mainly to technical staff. Therefore, those employees who have attained basic training in the respective feild from any Industrial Training Institute or Poly Technic or College but withour any work experience shall be regarded as Semi Skilled and those who have gained experience besides having undergone formal education/ training shall be taken as Skilled. Obviously, those having no formal education and are enagaged to help a skilled/ semi skilled worker shall come under unskilled workmen. Generally, in technical lines, like Machinist, Turner, Welder, Fitter etc, where promotion cannot be given to a higher posts, companies upgrade their category to mark promotion. As such, those who have experience within the organisation shall be given Highly Skilled grade.
In any case, support required from the Supervisory staff for an employee to do the work assigned to him is the yardstick to decide whether he is unskilled, semi skilled, skilled or highly skilled.

Regards,

Madhu.T.K

From India, Kannur
ajitdesai
Hi,
Can somebody tell me the rates of Special Allowance (Variable DA) applicable to Shops & ECommercial Establishments in Hyderabad for the period 01.04.2008 to 30.09.2008(Andhra Pradesah)
Thanks
AJIT DESAI, Pune

From India, Pune
Anirban Chatterjee
Please provide minimum wages of training institute of West Bengal,Uttar Pradesh,Tamilnadu,Rajasthan,Maharashtra,Punjab,Assam,Karnataka,Jharkhand,Gujrat,Delhi and Andhra Pradesh
From India, Calcutta
vajadhaval01
Respected sir
we are Payroll outsourcing co of india. We pay the basic according to the minimum wages, can we fix lower basic & incerease the other allowence so the the net salary can be on the higher side? does it effict to pf office? is this a legal ? is there any notification for the same? if yes than please provide it to us.

From India, Pune
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