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Friday, July 05, 2019

The Jharkhand Minimum Wage Notification (April 2019)

The Government of Jharkhand vide Notification No-2/MW-2071/2010 L&T-915 has released the Minimum Wages effective from 1st April 2019 declared on 13th June 2019.

Notification :- The Jharkhand Minimum Wages Notification 1st April 2019

Thursday, July 04, 2019

The West Bengal Minimum Wage Notification (July 2019)

Government of West Bengal as per notification No. 218/703/Stat/2RW/29/2016/LCS/JLC has released the minimum rates of wages effective from 1st July 2019

Wednesday, June 19, 2019


In the Employees’ State Insurance (General) Regulations, 1950, a new Regulations 96C shall be inserted as under : 


Subject to the provisions of the Act and the Regulations, the Corporation or State Government may refer a beneficiary to any tie-up arranged medical facilities, where cost of such facility is borne directly by the Corporation and where the fund permits.

1.An Insured Person should have completed a minimum of six months of insurable employment from the date of registration and have contributed not less than seventy eight (78) days in the relevant contribution period including in which registration was made. However, where the facility has been extended to his family members, an Insured Person should have completed a minimum of one year of insurable employment and have contributed for not less than seventy eight (78) days in each of the two (2) contribution period and such benefit shall be available to an Insured Person or a beneficiary in the corresponding benefit period.

2. Provided further that an Insured Person with employment injury or Insured Woman with complications arising out of maternity or those in receipt of extended sickness benefit under the Act shall be eligible as per the relevant contributory conditions and in case of family of extended sickness beneficiaries, they shall also be eligible as long as the benefit period corresponding to contribution period covered in extended sickness by more than half of the contribution period.

The Chandigarh Minimum Wage Notification (April 2019)

The following are the minimum rates of wages payable for monthly &
daily rated employees for the period starting from 01.04.2019 to 30.09.2019 in regards to Chandigarh

Notification:- 👉The Chandigarh Minimum Wages Notification 1st April 2019

Friday, June 14, 2019

Rate of contribution under the ESI Act has been reduced

Government of India: Rate of contribution under the ESI Act has been reduced from 6.5% to 4% (employers’ contribution reduced from 4.75% to 3.25% & employees’ contribution reduced from 1.75% to 0.75%). Reduced rates will be effective from 1st July 2019.

Old Rate Employees Share
New Rate Employee Share
Old Rate Employer Share
New rate of Employer Share
1.75 %
0.75 %
4.75 %

This would benefit 3.6 crore employees and 12.85 lakh employers. The reduced rate of contribution will bring about a substantial relief to workers and it will facilitate further enrollment of workers under the ESI scheme and bring more and more workforce into the formal sector. 

Similarly, reduction in the share of contribution of employers will reduce the financial liability of the establishments leading to improved viability of these establishments. This shall also lead to enhanced Ease of Doing Business. It is also expected that reduction in rate of ESI contribution shall lead to improved compliance of law.

The Employees’ State Insurance Act 1948 (the ESI Act) provides for medical, cash, maternity, disability and dependent benefits to the Insured Persons under the Act. The ESI Act is administered by Employees’ State Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded by the contributions made by the employers and the employees.  Under the ESI Act, employers and employees both contribute their shares respectively.

These efforts resulted insubstantial increase in the number of registered employees i.e. Insured Persons and employers and also a quantum jump in the revenue income of the ESIC.

The Government of India is committed to the cause of welfare of employees as well as employers. It is also committed to improve the quality of medical services & other benefits being provided under the ESI scheme.

Necessary Notification is appended below


Tuesday, June 11, 2019

Minimum Wages Tripura 1st Apr 2019

Minimum Wages of Tripura has been declared from 1st Apr 2019 

a) The fifty paisa or above rounded off to the next rupee. 
b) To arrive at daily rates of wages the month.rate shall be divided by 26 and rounded off to the next rupee. 
c) The overtime rate shall be the double of the ordinary rate of minimum wages

Notification:- 👉The Tripura Minimum Wages Notification 1st April 2019.

Friday, June 07, 2019

Punjab Minimum Wages W.E.F 1st Mar 2019

Punjab Minimum Wages have be published on 28th May 2019 W.E.F from 1st Mar 2019

Online e-nomination( Form No 2) is available at Member Interface of Unified Portal. under EPF act 1952

A facility for filing of online e-nomination is available at Member Interface of Unified Portal.

Following are the salient features of new e-Nomination functionality:

-  UAN should be activated

-  Verified Aadhaar should be linked  with UAN

-  Mobile number of member should be linked with Aadhaar

-  Photo of member should be available in the profile of member (Member has to upload his photo in his profile section)

-  Aadhaar of all the family members in e-Nomination is mandatory

-  Photo upload of all family members in e-Nomination is mandatory

-  Aadhaar based e-Sign by the member in e-Nomination

-  Digitally signed nomination PDF will be available in the login of member  and field office

 A readily available Nomination in the system enables a member to easily file the online Pension Claim and in the event of demise of the member, his/her nominee will be able to file online claim based on OTP on his/her Aadhaar linked mobile.

 Process flow along with screen shots is enclosed herewith for ready reference.

 It is requested to encourage the (employees) members to urgently file their e-Nomination and facilitate them if they are finding any difficulty.

If E-Nomination is not done non of the EPS ( Pension claim) will be settled or the death claim.

Necessary Process flow id enclosed in the circular as issued by the EPF office 

👉 Circular :- E-Nomination Circular & Process

Thursday, May 09, 2019

Gujarat Govt introduces New Shops and Establishments Act 2019

The Government of Gujarat (Ministry of Labour & Employment) has enacted the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 repealing the Gujarat Shops and Establishments Act, 1948. 

The New Act of 2019 is effective from 1st May 2019 .The provisions of the 2019 Act include: Legal Provision Call out Synopsis 

      Highlights on New Gujarat Shop & Establishment Act 2019

            1.Registration -

a) Within 60 days from the date of commencement of Business; the employer of every establishment engaging ten or more workers shall submit in prescribed Form with supporting documents for registration of the establishment as per section 6 of the Act along with the required documents as specified in Part A of the Schedule.
b) The employer of every establishment engaging less than ten workers shall submit an intimation of commencement of the business along with the required documents.
c) A registration certificate issued under sub-section (2) shall remain in force from the date  of issue till the change in ownership or nature of business takes place. In case of change in ownership or nature of business, the employer of every establishment shall have to obtain the fresh registration certificate.
d) The employer shall inform, in such form and in such manner, as may be prescribed, to the Inspector within thirty days from the date of closing of the business that the shop or establishment has been closed for business.

              2.      Leave –

a)  Every worker shall be allowed a weekly holiday with wages & every worker shall be entitled to Seven days casual leave with wages in every calendar year which shall be credited into the account of the worker at the beginning of the calendar year, but shall laps if un-availed at the end of the year.
b)  Every worker shall be entitled to seven days leave on medical grounds with wages in every calendar year which shall be credited into the account of the worker in the beginning of the calendar year, but shall lapse if un-availed at the end of the year.
c)  Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.
d)  Every worker shall be permitted to accumulate earned leave up to a maximum of Sixty Three days.
e)  Where the employer refuses to sanction the leave under sub-section (3) which is due when applied fifteen days in advance, then the worker shall have a right to en cash leave in excess of Sixty Three days: Provided that, if a worker is entitled to leave other than causal and festival leave under this section, is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment on account of retirement, resignation, death or permanent disability, the employer shall pay him full wages for the period of leave due to him.
a)  A worker shall be entitled to eight paid festival holidays in a calendar year, namely, 26th January, 15th August and 2nd October and Five such other festival holidays as may be agreed to between the employer and the workers as per the nature of business, before the commencement of the year. For holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime), which he earns during the month in which such compulsory holidays falls: Provided that, the employer may require any worker to work in the establishment on all or any of these days, subject to the conditions that for such work the worker shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.

             3.       Working Hours –

a)  No adult worker shall be required or allowed to work in any establishment for more than nine hours in any day and forty-eight hours in any week. No adult worker shall be asked to work continuously for more than five hours unless he has been given a break of not less than half an hour.
b)  No woman worker shall be required or allowed to work in any establishment except between the hours of 6 a.m. and 9-00 p.m. Provided that, the woman worker shall be allowed to work during 9-00 p.m. and 6-00 a.m. in any establishment in which adequate protection of their dignity, honour and safety, protection from sexual harassment and their transportation from the establishment to the doorstep of their residence as may be prescribed are provided by the employer or his authorized representative or manager or supervisor.
c)  An establishment may be kept open for business on all days in a week subject to the condition that every worker shall be allowed weekly holiday of at least twenty-four consecutive hours of rest. & If a worker is denied weekly holiday, the compensatory leave in lieu thereof shall be given within two months of such weekly holiday.

            4. Crèches –

a) In every establishment wherein Thirty or more workers are employed, there shall be provided and maintained a suitable room or rooms as crèche for the use of children of such workers : Provided that, if a group of establishments, so decide to provide a common crèche within a radius of one kilometre, then, the same shall be permitted by the Inspector, subject to such conditions as may be specified in the order.

           5.  Overtime –

a) Where a worker in any establishment is required to work beyond nine hours a day or forty-eight hours a week, he shall be entitled, in respect of the overtime work, wages at the rate of twice his ordinary rate of wages. The total number of overtime hours shall not exceed one hundred and twenty five hours in a period of three months.

      6. Annual Return.- 

       The employer of a shop or establishment shall furnish an annual returns, in         such a form and in such manner (including in electronic form), to such               authority as may be prescribed.

        7.       Penalties:-

a)  Whoever, found running any establishment without registration in contravention of the provisions of section 6 or rules made thereunder, shall be punishable with penalty of ten thousand rupees which shall include registration fees.
b) Whoever contravenes the provisions of this Act or the rules made thereunder shall, if no other penalty is elsewhere provided by or under this Act for such contravention, be punishable with fine which may extend to fifty thousand rupees: Provided that, the total amount of fine shall not exceed two thousand rupees per worker employed.

              New Act :- Gujarat New Shop 2019

             Implementation Notification  Gujarat New Shop Amendment date

Tuesday, April 09, 2019

Friday, April 05, 2019

Sunday, March 17, 2019

Karnataka Minimum Wages 2019-2020

Karnataka Minimum Wages are declared for the Year 2019-2020 

Min Wages Engineering Industry
Min wage - Automobile engineering
Min wage - Hospital & Nursing home
Min wage – Agriculture
Min wage - Agriculture part 2
Min wage - Cinema & film
Min wage - Hotel, restaurant
Min wage - Shops & establishment
Min wage - Security agency
Min wage - Electronics & Electroplating industry
Min wage - Electronic industry
Min wage - Tailoring industry
Min wage - plastic, Polyplastic, Rubber, PVC pipes
Min wage - Chemical industry
Min wage – printing
Min wage - Non schedule industry

Friday, March 15, 2019

Supreme Court Judgement regarding PF contribution on all allowances

Interpretation of term ‘basic wages’ of EPF & MP Act, 1952 and Impact of recent judgment of Supreme Court delivered in Surya Roshni Ltd v. EPFO, 2019 LLR 339 (SC) 

The recent judgment passed on 28.02.2019 by the Hon’ble Supreme Court in the matter of Regional Provident Fund Commissioner Vs. Vivekananda Vidyamandir and other connected appeals considered the scope of ‘basic wages’ and allowances liable for PF contributions. The said judgment is published under the caption Surya Roshni Ltd.& Ors. vs. The State of Madhya Pradesh EPF RPFC and Ors. 2019 LLR 339 (SC).

It’s nothing new; our Apex Court has just reiterated the 1963 verdict (Bridge & Roof Case, 1963 SC). Misunderstanding of most of the employers in India should take a wake-up call now. Till this 28.02.2019, what makes up basic wages was not very clear and the employers were at crossroads. Now, the Supreme Court has the paved way the employers to cross the bridge. The issue emerged particularly after the judgment given by Madras High Court in the case of Management of Reynolds pen, Madhya Pradesh High Court in Surya Roshni Case and of course, Vivekananda Vidya Mandir Case in Calcutta High Court. This judgment waited since from 2011.

It is a hammer knock on the Head of the stakeholders in the employment scenario!!! Also, has given caution to all!!

The position of law has been discussed in paragraph 8 to 14 of the judgment delivered by the Hon’ble Supreme Court in Surya Roshni case (supra). However, paragraph 14 contains the crux and the operative part of the judgment, which is reproduced under:
14. Applying the aforesaid tests to the facts of the present appeals, no material has been placed by the establishments to demonstrate that the allowances in question being paid to its employees were either variable or were linked to any incentive for production resulting in greater output by an employee and that the allowances in question were not paid across the board to all employees in a particular category or were being paid especially to those who avail the opportunity. In order that the amount goes beyond the basic wages, it has to be shown that the workman concerned had become eligible to get this extra amount beyond the normal work which he was otherwise required to put in. There is no data available on record to show what were the norms of work prescribed for those workmen during the relevant period. It is therefore not possible to ascertain whether extra amounts paid to the workmen were in fact paid for the extra work which had exceeded the normal output prescribed for the workmen. The wage structure and the components of salary have been examined on facts, both by the authority and the appellate authority under the Act, who have arrived at a factual conclusion that the allowances in question were essentially a part of the basic wage camouflaged as part of an allowance so as to avoid deduction and contribution accordingly to the provident fund account of the employees. There is no occasion for us to interfere with the concurrent conclusions of facts. The appeals by the establishments therefore merit no interference. Conversely, for the same reason the appeal preferred by the Regional Provident Fund Commissioner deserves to be allowed.

The above Judgment has many mixed views across India .Many queries are coming up seeking guidance for restructuring the wages packages/CTC of their employees. It is apprehended that the PF Deptt having the recent judgment at hand, are likely to increase their inspections and audits in order to recover the additional PF contributions along with interest and damages for delayed contribution in respect of such establishment where rationale behind giving such allowance is missing.

 Before adverting to the principles laid down in the above judgments, it has become necessary to set out the relevant provisions of the Act for purposes of the present controversy. Section 2(b) of the EPF & MP Act, 1952 reads as under: 

“Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include— (i) the cash value of any food concession; (ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; (iii) any presents made by the employer;” 

“Section 6: Contributions and matters which may be provided for in Schemes. The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each of the employees whether employed by him directly or by or through a contractor, and the employees’ contribution shall be equal to the contribution payable by the employer in respect of him and may, if  any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section: Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words “ten percent”, at both the places where they occur, the words “12 percent” shall be substituted: Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee. 

Explanation I – For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee. 

Explanation II. – For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.” 

Based on the above two definition under Section 2(b) & section 6 if we read it clearly it says some allowances/components/amounts have been expressly excluded for making payment of PF contributions. The list of expressly excluded allowances are house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment and any presents made by the employer

At least, after this... takes effect, PF contributions are to be remitted on the monthly pay of the employees.
Ø  ‘Pay’ includes Basic Wages, DA (including cash value of food concessions) and Retaining Allowance, if any.
Ø  ‘Basic Wages’ means not merely the one component which is named so but includes all the components except HRA, OT allowance, Bonus, commission and any other similar nature of allowance (For example, the transport / conveyance allowance, special allowance, washing allowance, attendance incentive, night shift incentive, educational allowance, City Compensatory Allowance, Misc. Allowance, other allowance, etc., which are paid regularly are held to be ‘basic wages’ by the MP and Madras High Courts).

There is no law which prescribes any specific salary structure for any type of industry or company. There is also no mandatory component but for ‘basic salary’. Therefore, it is for the management to derive a salary structure for its employees. The number of components, one company can determine through contract of employment.

Since all the components in the name of Allowances except Basic wages, Dearness Allowance as ‘filler’, in the strict legal sense, it will be treated either as basic salary or as dearness allowance. Hence, this should be reckoned for PF because it is the nature (purpose) of payment which matters most and not the nomenclature.

Now, take the case of allowance in Kichha Mills Limited through General Manager vs. Tarai Chini Mill Majdoor Union, Uttarakhand, (2014) 4 SCC 37:

Allowances should be fixed on a contingent basis and compensatory in nature otherwise, these will be treated as basic wages. The main crux of the judgment, especially for allowance, is extracted here as under para;
“A compensatory allowance broadly falls into three categories; 
Ø  allowance to meet the high cost of living in certain, especially costly cities and other local areas;
Ø  allowance to compensate for the hardship of service in certain areas, e.g. areas which have a bad climate and/or difficult to access; and
Ø  (iii)allowances granted in areas, e.g. field service areas, where, because of special conditions of living or service, an employee cannot, besides other disadvantages, have his family with him. There may be cases in which more than one of these conditions for grant of compensatory allowance is fulfilled”.

Example: Management should be in a position to establish that this payment goes towards conveyance (The clear written policy should be available on the purpose for which the payment is made. The conveyance allowance should not be paid for holidays, leaves or absence from duty). If done, this component need not be considered for ESI, PF, Bonus, and gratuity. If conveyance allowance is paid to all employees without any proof in respect thereof this will unsustainable.

If this is paid as filler’ in order to meet out the Cost to the Company (So-called ‘CTC’), in the strict legal sense, it could be treated as basic salary. Hence this should be reckoned for PF contribution.

But the purpose of paying these allowances are clearly established, this need not be reckoned for PF.

In case the monthly pay for determining PF contributions exceed Rs. 15000/-, the same can be restricted to Rs 15000/-. If the establishment has been already contributing without so restricting, the same can be continued. If it is decided to restrict it to Rs 15000/- now, it can be done with the concurrence of the RPFC concerned in accordance with the case law Marathwada Gramin Bank Karmachari Sanghatana and another Vs Management of Marathwada Gramin Bank and others, SC, 9 Sep 2011 (Sec 12 will not get attracted)

In a nutshell, Salary structuring is to be done only with Pay but it is not with Allowances!!!

I have been receiving various call that  EPFO central office should issue a specific guideline but in 2012 a circular in regards to 7A guidelines was issued by the EPFO office as enclosed where at the page Number 4 of 6 Sr No 12 where in it has clearly mention on the above captioned subject

12. SPLITTING OF WAGES - Basic wages by its own definition encompasses all the payments except the specified exclusions. All such allowances which are ordinarily, necessarily and uniformly paid to the employees are to be treated as part of the basic wages. The confusion in definition of wages (and hence
the issue of splitting of wages) primarily arises from the expression "commission or any other similar allowance payable to the employee" in Section 2(b) (ii) of the Act as "commission" and "any other similar allowance" are read as two separate expressions and hence "any other allowance" is read as an omnibus exclusion, thereby encouraging the subterfuge of splitting of wages to exclude the PF liabilities. The expression "commission or any other similar allowance payable to the employee" is one continuous term meaning commission or any other "commission" like allowance by whatever nomenclature referred. Thus "basic wages" is subject to exclusions expressly referred to in the above definition and no other.

PF Circular  2012:- 2012 Circular

Supreme court Judgment :-PF Judgment on_SC_2019

Thursday, February 21, 2019

Haryana Minimum Wages Revision 1st Jan 2019

Haryana Minimum Wages Revision is been published the effective date of the same is 1st Jan  2019

Monthly Wage
Daily Wage
Clerical & General Staff
(i) Below Matriculation
(ii) Matriculation but not Graduate
(iii) Graduate or above
(iv) Steno Typist
(v) Junior Scale Stenographer
(vi) Senior Scale Stenographer
(vii) Personal Assistant
(viii) Private Secretary
Data Entry Operator
Light Vehicle
Heavy Vehicle
Security Guard
without weapon
with weapon
Security Inspector / Security Officer / Security Supervisor
Safai Karamchari in any employment

Notification :- The Haryana Minimum Wages Notification 1st Jan 2019