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New Labour Code: Working Hours, Salary Structure To Change From October 1, Check Other Details

2021-09-12T23:59:00.001-07:00

According to the new draft rule, the basic pay will be 50% or more of the total salary.

Come October 1, the Narendra Modi government is coming with a lot of changes in the rules of labour law. This new rule states that the employees working hours are going to be increased from 9 hours to 12 hours in the new labour law.

Besides that, the in-hand salary will also change after the new law is implemented. According to the new draft rule, the basic pay will be 50% or more of the total salary. This will also change the salary structure of most employees; as the non-perks part of the salary will be less than 50 per cent of the total salary. Similarly, other allowances in the total salary will also change, i.e. it will be more.

The increase in basic salary will further increase the PF which is based on basic pay. An increase in the basic pay will increase the PF; which means that there will be a cut in the take-home or hand-to-hand pay.

With the increase in contribution to gratuity and PF, the amount received after retirement will increase. The highest-paid officers will see the most change in their pay structure and will be affected the most. With the increase in PF and gratuity, the cost of companies will also increase. And now the companies will also have to contribute more to the PF for the employees.

In the new draft law, a proposal has been proposed to increase the maximum working hours to 12. The draft rules of the OSCH Code provide for extra work between 15 and 30 minutes to be counted as overtime for 30 minutes. Under the current rule, less than 30 minutes are not considered eligible overtime. The draft rules have prohibited any employee to work continuously; for more than 5 hours and it also included instructions to give half-an-hour rest to the employees after every five hours.

Delhi Government Launches Social Security Scheme, Portal For COVID-19 Hit Families

2021-07-08T23:23:00.001-07:00

The Delhi government officers will also visit families who’ve lost their loved ones to the COVID-19 pandemic. They won’t reject claims if any documents are missing. In a major initiative, the Delhi government on Tuesday launched a new social security scheme and a dedicated portal to provide financial assistance to the COVID-19 hit families. The new social security scheme for COVID-19 affected families and the portal were launched by Delhi Chief Minister Arvind Kejriwal.

Under the ‘Mukhyamantri COVID-19 Pariwar Aarthik Sahayata Yojana’, Rs 50,000 ex gratia will be given to every family that lost a member to COVID-19 and an additional Rs 2,500 per month will be given if the deceased was the sole breadwinner.

CM Kejriwal said Delhi has faced four waves of coronavirus. The fourth one affected almost every family and many people died.

Many children were orphaned due to COVID many families lost their sole breadwinner. In such a case, being a responsible government, we conceptualised this scheme.

“We are launching a portal through which such people can apply for financial assistance. Our representatives will also visit such families and get applications filled up,” he said during the launch.

The AAP chief said that the Delhi government officers will also visit families who’ve lost their loved ones to the COVID-19 pandemic. They won’t reject claims if any documents are missing.

COVID-19 And The Changing Face Of Child Labour

2021-07-06T23:22:00.001-07:00

COVID-19 And The Changing Face Of Child Labour

Child labour robs children of their childhood, potential and dignity. As many as 152 million

(1 in 10) children work as labourers across the world; according to the International Labour

Organization.

Among these, 64 million are girls. Almost half of the 72 million children are engaged in

hazardous work; 6.3 million are pushed into forced work and human slavery.

Children are driven into this work for multiple reasons: When families fall into poverty;

experience income insecurity, emergencies, or are affected by unemployment, human

trafficking, conflict and extreme weather events.

Child labour is prevalent not only in the agriculture sector; but today other sectors such as

export-oriented agriculture, mining, manufacturing, industries, tourism and construction.

It is a global phenomenon and exists in different forms and intensities in almost every part

of the globe. Yet, half the world’s child labourers (72.1 million) are in Africa; 62.1 million are

in Asia and the Pacific.

Over the last two decades, the number of children working as child labourers came down

by a 100 million. But the novel coronavirus disease (COVID-19); pandemic has dealt a heavy

blow on human lives and endangered the economic activities of the poor and disadvantage

people.

According to United Nations Food and Agriculture Organization; the COVID-19 pandemic will

cause more than a quarter of billion people suffering from acute hunger by the end of 2021.

The pandemic has hit the mental, physical and nutritional health of children. Schools have

been shut for the longest time due to the crisis, denying children access to healthy school

meals.

This Has Compelled Children To Work To Support Their Families.

Aide et Action’s study in India on the impact of COVID-19 on migrant children revealed a

two-fold increase in the number of children who accompanied their working parents to the

brick-making industry after the first wave COVID-19 pandemic.

Those who work at brick kilns have been compelled to drag their children along. In South

Asia, tens and thousands of brick kilns provide seasonal wage employment to the poor and

debt-ridden rural families.

Migrant families are recruited by labour contractors and ferried to the urban location to work

in brick kilns. The traditional brick kiln industries that operate on manual labourers often

utilise child labour for work.

Aide et Action has been working with children living in brick kilns in India to provide education

and care to them. It has assisted thousands of migrant workers and their families to travel

safely to their native villages and reintegrated them up with a government health support and

social protection schemes. During the first COVID-19 wave, the lockdown forced millions of

migrant labourers to move back to their villages in India.

The Soaring Demand For Food

health supplies, basic services need a huge workforce to wheel and support the national and

global supply chain.

A recent global report indicated that the link between child labour and the global supply chain

was often indirect and; happened in the lower tier of supply chain like raw material extraction

and agriculture operations. The unprecedented economic crisis has, however, pulled children

into the national and global supply chain and other informal sectors.

The United Nations declared 2021 as the international year for the elimination of child labour.

The Sustainable Development Goals 8 & 7 challenge the world to eradicate forced labour,

modern slavery by 2025.

It can be a herculean task for policy makers and planners to devise effective strategy to

contain the child labour. Elimination of child labour needs several approaches. The

one-size-fits-all approach will fail to address the issues of poor and excluded communities.

Every government and non-government action for the elimination of child labour should be

effectively reinforced with national child rights policies, stricter law enforcement; quality social

protection and strengthening of school ecosystem.

Will Office Rules Change? Job Will Have To Be Done For 4 Days Instead Of 5 In A Week!

2021-06-19T00:27:00.005-07:00

Big News For Office Employees.

New Labor Law: The Modi government (central government) is preparing for changes in the amendment of the labor law (labour law). Employees will soon have to work 4 days a week instead of 5 days and 3 days off in a week instead of 2 days.

4 Days Job Instead Of Five

In the new case, the department has included the department till 12. It is dangerous to work. If you work 8 hours a day, you will work 12 hours. Multiplier 4 days 48 hours. There are 8 hours in practical work.

Not Less Than 30 Minutes Of Overtime

Care in the time period between 15 and 30 must also meet code regulations in order to join the 30 30 summer working hours. Standard working time limit of 30 minutes. Five will communicate after every five hours.

There Will Be A Big Change In The Salary Structure

According to the new draft rule, the basic pay should be 50% or more of the total salary. This will change the pay structure of most of the employees. Take home salary can be reduced and PF amount can increase. After the implementation of the new pay code, employers will have to pay 50 percent of the CTC as basic salary to the employee. Bonus, pension, conveyance allowance, house rent allowance, housing benefit, overtime etc. will be out when the new wage code is implemented.

Labour Codes On The Cards: Companies’ PF Liability To Go Up, Workers To See Reduction In Take-Home Pay

Labour codes on the cards: Companies' PF liability to go up, workers to see reduction in take-home pay

2021-06-09T23:09:00.002-07:00

The four labour codes are likely to see the light of day in a couple of months as the Centre is now keen to go ahead with the implementation of these laws; which among others will result in reduction in take-home pay of employees and higher provident fund liability of companies. Once the wages code comes into force; there will be significant changes in the way basic pay and provident fund of employees are calculated.

The labour ministry had envisaged implementing the four codes on industrial relations; wages, social security and occupational health safety & working conditions from April 1, 2021. These four labour codes will rationalise 44 central labour laws.

The ministry had even finalised the rules under the four codes. But these could not be implemented because many states were not in a position to notify rules under these codes in their jurisdiction.

Labour Codes Is A Concurrent Subject

Labour is a concurrent subject under the Constitution of India and therefore both the Centre and states have to notify rules under these four codes to make them the laws of the land in their respective jurisdictions.

“Many major states have not finalized the rules under four codes. Some states are in the process of finalizing rules for the implementation of these laws. Central government cannot wait forever for states to firm up rules under these codes. Therefore it is planning to implement these codes in a couple of months as some time would have to be given to establishments or firms to align with new laws; a source told .

According To The Source

some states had already circulated the draft rules. These states are Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand.

Under the new wages code; allowances are capped at 50 per cent. This means half of the gross pay of an employee would be basic wages. Provident fund contribution is calculated as a percentage of basic wage; which includes basic pay and dearness allowance.

The employers have been splitting wages into numerous allowances to keep basic wages low to reduce provident fund and income tax outgo. The new wages code provides for provident fund contribution as a prescribed proportion of 50 per cent of gross pay.

After The Implementation Of New Codes,

The take-home pay of employees would reduce while provident fund liability of employers would increase in many cases. Once implemented; employers would have to restructure salaries of their employees as per the new code on wages.

Besides; the new industrial relation code would also improve ease of doing business by allowing firms with up to 300 workers to go ahead for lay-offs; retrenchment and closure without government permission.

At present all firms with up to 100 employees are exempted from government permission for lay-off; retrenchment and closure.

Delhi Lockdown From 10 PM Till Next Monday, Covid Situation "Critical"

2021-04-20T04:57:00.000-07:00

Announcing the six-day lockout in Delhi from 10 am tonight to 5 am next Monday; Chief Minister Arvind Kejriwal said the move was necessary as rising Kovid cases; severely hampered the city’s resources and its The health system was at a critical point. Delhi is the worst-case city in India with 25,500 new cases on Sunday. In the last 24 hours, the number of cases has been higher despite the plunge – 23,500.

Arvind Kejriwal said that the decision to lockdown was not easy. Arvind Kejriwal said Delhi’s health system is at a breaking point. I would not say that it has collapsed, but Kovid’s condition is quite critical.

I believe that lockdown will not eliminate the virus, but it will reduce the transmission rate. This will give us time to boost our infrastructure. We will improve our healthcare To use this week-long lockdown. ” she added.

Mr. Kejriwal said that Delhi lacked critical medicines like hospital beds, medical oxygen supply and anti-viral remedieswear. “If we don’t implement the lockdown now, Delhi” may stare into a major disaster, “he explained. All shops and businesses will be closed and movement will be limited to essential services.

Similar Measures Have Been Taken In Other Parts Of India Including Maharashtra.

On Sunday, Delhi recorded the biggest jump in its daily Kovid tally with 25,462 fresh cases and positivity of around 30 percent; which means that almost every third sample being tested in the city is turning positive.

A weekend curfew, enforced to “break the chain of transmission” that ended this morning, is giving the people of Delhi a few more hours to stock up. Mr. Kejriwal met Lieutenant Governor Anil Baijal this morning. It was also decided in the meeting that Mr. Baijal, who represents the Center in Delhi, would write to the Central Government for more beds in the city. The Lieutenant Governor is also expected to write to the Chief Minister of Uttar Pradesh for more oxygen.

Mr. Baijal said in the meeting that the concerns related to migrant laborers should be addressed. Migrant workers were most affected last year when the nation went into lockdown, leaving thousands of people deprived of their earnings and homes.

The chief minister said, “I appeal to everyone that this is a short lockout of six days. Please do not leave Delhi. I assure you that the government will take care of you.”

By the weekend’s curfew order, auditoriums, restaurants, malls, gyms and spas remain closed and movie theaters are allowed with only one-third of capacity. All gatherings – social, religious or political – are banned. Mr. Kejriwal has been saying that the rising cases have been exerting tremendous pressure on the national capital’s health infrastructure.

“The situation is very serious and worrisome. Cases have gone up really fast. That is why we are facing shortages even though everything seemed under control until a few days ago. But the speed at which this corona is growing, no one knows where its peak will be,” he said in a virtual address on Friday.

More companies would be willing to roll out increments

2021-03-16T23:23:00.004-07:00

The good news is there’s total consensus more companies would be willing to roll out increments in 2021 compared with 2020. There’s less of a consensus in the amounts but most HR consultancies forecast an increase of about 7-7.7% in 2021. In sum, 2021 could be a good year for corporate executives with Anandorup Ghose, partner, Deloitte India, estimating that 92% of companies plan to reward employees financially versus only 60% in 2020.

However, what could set 2021 apart is that only star performers and target achievers would be rewarded and not all employees. “This year will see an acceleration of the existing trend of sharper differentiation and more incentive-based awards than fixed cost increases,” Ghose told FE.

Sudeep Sen, Business Head, TeamLease Services, believes the approach will be to pay for skills and KPI achievements. “Due to the epidemic-induced situation, multi-tasking and remote work were at a high level. Those who have demonstrated the ability to adapt and perform will be given more remuneration than the general crowd and which will also take precedence in the coming year, ”said Sen.

As per the first phase of the 2021 Workforce and Increment Trends Survey by Deloitte Toche Tohmatsu India LLP, an average growth of 7.3% in 2021 is expected to be achieved in 2021 which will be significantly higher than 4.4% in 2020. Global professional services firm Aon Consulting reported an average growth of 7.7% this year, again larger than the 6.1% of companies.

TeamLease Services believes the average growth may be small or slightly lower. For the executive level, the estimated median is 7%, 0.1 to 0.15% lower than in 2020. For middle management, professional and support staff, wage growth may remain flat by 7.3% in 2021, or less, compared to 7.5% in 2020.

Despite better wage growth, for most companies, the increase in the wage bill will be equal to or less than the budget for wage increases; It suggests a tough stance on the strength of his team.

Ghosh points out that companies are cautious in an economic environment in which the top-lines have not increased significantly. For a group of 3,900 odd companies, revenue in Q3FY21 grew by only 2.5%. “In such an environment, employers are caught in a bind. There is a significant push to retain key talent as well as manage costs as aggressively as possible, ”he explained.

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The Code on Wages 2019

2020-08-26T01:39:00.001-07:00

Draft Code on Wages (Central) Rules, 2020

2020-07-28T23:40:00.002-07:00

MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 7th July, 2020

G.S.R. 432(E).—The following draft rules, which the Central Government proposes to make in exercise of the powers conferred by section 67 of the Code on Wages, 2019 (29 of 2019) read with section 24 of the General Clauses Act, 1897 (10 of 1897) and in supersession of the –

(i) Payment of Wages (Procedure) Rules, 1937;

(ii) Payment of Wages (Nomination) Rules, 2009;

(iii) Minimum Wages (Central) Rules, 1950;

(iv) Minimum Wages (Central Advisory Board) Rules, 2011;

(v) Ease of Compliance to Maintain Register under various Labour Laws Rules, 2017 to the extent these rules are made in exercise of the powers conferred by section 13 of the Equal Remuneration Act, 1976 (25 of 1976), section 29 and section 30 of the Minimum Wages Act, 1948 (11 of 1948) and section 26 of the Payment of Wages Act, 1936 (4 of 1936) and applicable accordingly;

(vi) Payment of Bonus Rules, 1975;

(vii) Equal Remuneration Rules, 1976; and

(viii) Central Advisory Committee on Equal Remuneration Rules, 1991;

made by the Central Government in exercise of the powers conferred by the Payment of Wages Act, 1936 (4 of 1936), the Minimum Wages Act, 1948 (11 of 1948), the Payment of Bonus Act, 1965 (21 of 1965) and the Equal Remuneration Act, 1976 (25 of 1976), as the case may be, which are repealed by section 69 of the said Code on Wages, 2019, except as respects things done or omitted to be done before such supersession, are hereby notified, as required by sub-section (1) of said section 67, for information of all persons likely to be affected thereby and the notice is hereby given that the said draft notification will be taken into consideration after the expiry of a period of forty-five days from the date on which the copies of the Official Gazette in which this notification is published are made available to the public;

Objections and suggestions, if any, may be addressed to Shri M. A. Khan, Deputy Director (ma.khan15@nic.in), and Smt. Rachana Bolimera, Assistant Director (r.bolimera@nic.in), Government of India, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001.

Objections and suggestions, which may be received from any person with respect to the said draft notification before expiry of the period specified above, will be considered by the Central Government.

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.-

(1) These rules may be called the Code on Wages (Central) Rules, 2020.

(2)They extend to the whole of India.

(3) They shall come into force after the date of their final publication in the Official Gazette, on the date of the commencement of the Code on Wages, 2019 (29 of 2019).

2. Definitions.- In these rules, unless the subject or context otherwise requires,

(a) “authority”means the authority appointed by the Central Government under sub-section (1) of section 45;

(b) “appellate authority”means the appellate authority appointed by the Central Government under subsection (1) of section 49;

(d) “Board”means the Central Advisory Board constituted by the Central Government under sub-section (1) of section 42;

(e) “Chairperson”means the chairperson of the Board;

(f) “Code”means the Code on Wages, 2019 (29 of 2019);

(g) “committee” means a committee appointed by the Central Government under clause (a) of sub-section (1) of section 8;

(h) “day” means a period of 24 hours beginning at mid-night;

(i) “Form” means a form appended to these rules;

(j) “highly skilled occupation” means an occupation which calls in its performance a specific level of perfection and required competence acquired through intensive technical or professional training or practical occupational experience for a considerable period and also requires of an employee to assume full responsibility for his judgement or decision involved in the execution of such occupation;

(k) “Inspector-cum-Facilitator” means a person appointed by the Central Government, by notification under sub-section (1) of section 51;

(l) “member” means a member of the Board and includes its Chairperson;

(m) “metropolitan area” means a compact area having a population of forty lakhs or more comprised in one or more districts;

(n) “non-metropolitan area” means a compact area having a population of more than ten lakhs but less than forty lakhs, comprised in one or more districts;

(o) “population” means the population as ascertained at the last preceding census of which the relevant figures have been published;

(p) “registered trade union” means a trade union registered under The Trade Unions Act, 1926 (16 of 1926);

(q) “rural area” means the area which is not the metropolitan area or non-metropolitan area;

(r) “Schedule” means the schedule to these rules;

(s) “section” mens a section of the Code;

(t) “semi-skilled occupation” means an occupation which in its performance requires the application of skill gained by the experience on job which is capable of being applied under the supervision or guidance of a skilled employee and includes supervision over the unskilled occupation;

(u) “skilled occupation” means an occupation which involves skill and competence in its performance through experience on the job or through training as an apprentice in a technical or vocational institute and the performance of which calls for initiating and judgement;

(v) “unskilled occupation” means an occupation which in its performance requires the application of simply the operating experience and involves no further skills;

(w) all other words and expressions used herein in these rules and not defined shall have the meanings respectively assigned to them under the Code.

CHAPTER II

Minimum wages

3. Manner of calculating the minimum rate of wages.–

(1) for the purposes of sub-section (5) of section 6, the minimum rate of wages shall be fixed on the day basis keeping in view the following criteria*, namely:-

(I) the standard working class family which includes a spouse and two children apart from the earning worker; an equivalent of three adult consumption units;

(II) A net intake of 2700 calories per day per consumption unit;

(III) 66 meters cloth per year per standard working class family;

(IV) Housing rent expenditure to constitute 10 per cent of food and clothing expenditure;

(V) Fuel, electricity and other miscellaneous items of expenditure to constitute 20 percent of minimum wage; and

(VI) Expenditure for children education, medical requirement, recreation and expenditure on contingencies

to constitute 25 percent of minimum wage;

(2) when the rate of wages for a day is fixed, then, such amount shall be divided by eight for fixing the rate of wages for an hour and multiplied by twenty six for fixing the rate of wages for a month and in such division and multiplication the factors of one-half and more than one-half shall be rounded as next figure and the factors less than one-half shall be ignored.

4. Norms for fixation of minimum rate of wages.-

(1) While fixing the minimum rate of wages under section 6, the Central Government shall divide the concerned geographical area into three categories, that is to say the metropolitan area, non-metropolitan area and the rural area.

(2) The Central Government shall constitute a technical committee for the purpose of advising the Central Government in respect of skill categorization, which shall consist of the following members, namely:-

(i) Chief Labour Commissioner (Central) – Chairperson;

(ii) Joint Secretary to the Government of India in the Ministry of Labour and Employment dealing with the wages – Member;

(iii) A representative from the Ministry of Skill Development and Entrepreneurship,Government of India, dealing with skill development – Member;

(iv) Director General of Employment, Government of India, Ministry of Labour and Employment – Member;

(v) Two technical experts in wage determination as nominated by the Central Government -Members; and

(vi) the Deputy Secretary to the Government of India, in the Ministry of Labour & Employment, dealing with the wages – Member Secretary.

(3) The Central Government shall, on the advice of the technical committee referred to in sub-rule (2), categorize the occupations of the employees into four categories that is to say unskilled, semi-skilled, skilled and highly skilled by modifying, deleting or adding any entry in the categorization of such occupations specified in Schedule E.

(4) The technical committee referred in sub-rule (2) shall while advising the Central Government under sub-rule (3) take into account, to the possible extent, the national classification of occupation or national skills qualification frame work or other similar frame work for the time being formulated to identify occupations.

5. Time Interval for revision of dearness allowance.-

Endeavour shall be made so that the cost of living allowance and the cash value of the concession in respect of essential commodities at concession rate shall be computed once before 1st April and then before 1st October in every year to revise the dearness allowance payable to the employees on the minimum wages.

6. Number of hours of work which shall constitute a normal working day.—

(1) The normal working day under clause (a) of sub-section (1) of section 13 shall be comprised of eight hours of work and one or more intervals of rest which in total shall not exceed one hour.

(2) The working day of an employee shall be so arranged that inclusive of the intervals of rest, if any, it shall not spread over more than twelve hours on any day.

(3) The provisions of sub-rules (1) and (2) shall, in the case of an employee employed in agricultural employment, be subject to such modifications as may, from time to time, be determined by the Central Government.

(4) Nothing in this rule shall be deemed to affect the provisions of the Factories Act, 1948 (63 of 1948).

7. Weekly day of rest.-

(1) Subject to the provisions of this rule, an employee shall be allowed a day of rest every week (hereinafter referred to as “the rest day”) which shall ordinarily be Sunday, but the employer may fix any other day of the week as the rest day for any employee or class of employees:

Provided that an employee shall be entitled for the rest day under this sub-rule if he has worked under the same employer for a continuous period of not less than six days:

Provided further that the employee shall be informed of the day fixed as the rest day and of any subsequent change in the rest day before the change is effected, by display of a notice to that effect in the place of employment at the place specified by the Inspector-cum-Facilitator in this behalf.

Explanation.- For the purpose of computation of the continuous period of not less than six days specified in the first proviso to this sub-rule, any day on which an employee is required to attend for work but is given only an allowance for attendance and is not provided with work,a day on which an employee is laid off on payment of compensation under the Industrial Disputes Act, 1947 (14 of 1947),andany leave or holiday, with or without pay, granted by the employer to an employee in the period of six days immediately preceding the rest day, shall be deemed to be days on which the employee has worked.

(2) Any such employee shall not be required or allowed to work on the rest day unless he has or will have a substituted rest day for a whole day on one of the five days immediately before or after the rest day:

Provided that no substitution shall be made which will result in the employee working for more than ten days consecutively without a rest day for a whole day.

(3) Where in accordance with the foregoing provisions of this rule, any employee works on a rest day and has been given a substituted rest day on any one of the five days before or after the rest day, the rest day shall, for the purpose of calculating the weekly hours of work, be included in the week in which the substituted rest day occurs.

(4) An employee shall be granted-

(a) for rest day wages calculated at the rate applicable to the next preceding day; and

(b) where he works on the rest day and has been given a substituted rest day,

then, he shall be paid wages for the rest day on which he worked, at the overtime rate and wages for the substituted rest day at the rate applicable to the next preceding day:

Provided that where-

(i) the minimum rate of wages of the employee as notified under the Code has been worked out by dividing the minimum monthly rate of wages by twenty- six; or

(ii) the actual daily rate of wages of the employee has been worked out by dividing the monthly rate of wages by twenty-six and such actual daily rate of wages is not less than the notified minimum daily rate of wages of the employee,

then, no wages for the rest day shall be payable; and

(iii) the employee works on the rest day and has been given a substituted rest day, then, he shall be paid, only for the rest day on which he worked, an amount equal to the wages payable to him at the overtime rate;

and, if any dispute arises whether the daily rate of wages has been worked out in accordance with the provisions of this proviso, the Chief Labour Commissioner(Central)or the Deputy Chief Labour Commissioner (Central) having territorial jurisdiction may, on application made to him in this behalf, decide the same, after giving an opportunity to the parties concerned to make written representations.

Provided further that in case of an employee governed by a piece-rate system, the wages for the rest day, or the substituted rest day, as the case may be, shall be such as the Central Government may, from time to time determine having regard to the minimum rate of wages fixed under the Code, in respect of the employment.

Explanation.-In this sub-rule ‘next preceding day’means the last day on which the employee has worked, which precedes the rest day or the substituted rest day, as the case may be; and where the substituted rest day falls on a day immediately after the rest day, the next preceding day means the last day on which the employee has worked, which precedes the rest day.

(5) The provisions of this rule shall not operate to the prejudice of more favourable terms, if any, to which an employee may be, entitled under any other law or under the terms of anyaward, agreement or contract of service, and in such a case, the employee shall be entitled only to more favourable terms aforesaid.

Explanation.- For the purposes of this rule, ‘week’shall mean a period of seven days beginning at midnight on Saturday night.

8. Night shifts.—

Where an employee in an employment works on a shift which extends beyond midnight, then, –

(a) a rest day for the whole day for the purposes of rule 7 shall, in this case means a period of twenty-four consecutive hours beginning from the time when his shift ends; and

(b) the following day in such a case shall be deemed to be the period of twenty-four hours beginning from the time when such shift ends, and the hours after midnight during which such employee was engaged in work shall be counted towards the previous day.

9. The extent and conditions for the purposes of sub-section (2) of section 13.-

In case of employees-

(a) engaged in any emergency which could not have been foreseen or prevented;

(b) engaged in work of the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned;

(d) engaged in any work which for technical reasons has to be completed before the duty is over; and

(e) engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces;

the provisions of rules 6, 7 and 8 shall apply subject to the condition that –

(i) the spread over of the hours of work of the employee shall not exceed 16 hours in any day; and

(ii) the actual hours of work excluding the intervals of rest and the periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attendance shall not exceed 9 hours in any day.

10. Longer wage period.-

The longer wage period for the purposes of minimum rate of wages under section 14 shall be by the month.

CHAPTER III

Floor Wages

11. Manner of fixing floor wage.—

(1) The Board shall be consulted by the Central Government for the purpose of fixing the floor wage under sub-section (1) of section 9, taking into account the minimum living standard including the food, clothing, housing and any other factors considered appropriate by the Central Government from time to time of the standard working class family as specified in clause (i) of sub-rule (1) of rule 3.

(2) The advice of the Board obtained in consultation under sub-rule (1) shall be circulated by the Central Government to all State Governments for consultation with them.

(3) The advice of the Board referred to in sub-rule (2) and the views of the State Governments received in consultation referred to in that sub-rule shall be considered before fixing the floor wage under sub-rule (1).

(4) The Central Government may revise the floor wage fixed under sub-rule (1) ordinarily at an interval not exceeding five years and undertake adjustment for variations in the cost of living periodically in consultation with the Board.

11A.—Circumstances under clause (ii) of the proviso to section 10.—

An employee shall not be entitled to receive wages for a full normal working day under section 10, if he is not entitled to receive such wage under any other law for the time being in force.

12. Manner of consultation with State Governments.—

The Central Government shall obtain the advice of the Board and consult such State Governments as it thinks necessary before fixing the floor wage under rule 11.

CHAPTER IV

PAYMENT OF WAGES

13. Recovery under sub-section (4) of section 18.-

where the total deductions authorized under sub-section (2) of section 18 exceed fifty per cent. Of the wages of an employee,the excess shall be carried forward and recovered from the wages of succeeding wage period or wage periods, as the case may be, in such installments so that the recovery in any month shall not exceed the fifty per cent. Of the wages of the employee in that month.

14. the authority under sub-section (1) of section 19.-

the deputy chief labour commissioner (central) having jurisdiction over the place of work of the employee concerned shall be the authority for the purposes of sub-section (1) of section 19.

15. The manner of exhibiting the notice under sub-section (2) of section 19.-

a notice referred to in sub-section (2) of section 19 shall be displayed at the conspicuous places in the premises of the work place in which the employment is carried on, so that every concerned employee would be able easily to read the contents of the notice and a copy of the notice shall be sent to the inspector-cum-facilitator having jurisdiction.

16. The procedure under sub-section (3) of section 19.-

the employer shall give an intimation in writing specifying therein the detailed particulars for obtaining the approval of the imposition of fine to the deputy chief labour commissioner (central) referred to in rule 14 who shall, before granting or refusing the approval,give opportunity of being heard to the employee and the employer concerned.

17. Intimation of deduction.-

(1) Where an employer makes any deduction in pursuance of the proviso to sub-section (2) of section 20, he shall make intimation of such deduction to the Inspector-cum-Facilitator having jurisdiction within 10 days from the date of such deduction explaining therein the reason of such deduction.

(2) The Inspector-cum-Facilitator shall, after receiving intimation under sub-rule (1), examine such intimation and if he finds that the explanation given therein is in contravention of any provision of the Code or the rules made there under, he shall initiate appropriate action under the Code against the employer.

18. Procedure for deduction under sub-section (2) of section 21.-

Any employer desiring to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee shall,-

(i) explain to the employee personally and also in writing the damage or loss of goods expressly entrusted to the employee for custody or for loss of money for which he is required to account and how such damages or loss is directly attributable to the neglect or default of the employee; and

(ii) thereafter,give the employee an opportunity to offer any explanation and deduction for any damages or loss, if made, shall be intimated to the employee within fifteen days from the date of such deduction.

19. Conditions regarding recovery of advance under section 23.-

The recovery, as the case may be of,-

(i) advances of money given to an employee after the employment begins under clause (b) of section 23; or

(ii) advances of wages to an employee not already earned under clause (c) of section 23,

shall be made by the employer from the wages of the concerned employee in installments determined by the employer, so as any or all installments in a wage period shall not exceed fifty per cent. of the wages of the employee in that wage period and the particulars of such recovery shall be recorded in the register maintained in Form-I.

20. Deduction under section 24.-

Deductions for recovery of loans granted for house building or other purposes approved by the Central Government, and the interest due in respect thereof shall be, subject to any direction made or circular issued by the Central Government from time to time regulating the extent to which such loans may be granted and the rate of interest shall be payable thereon.

CHAPTER V

Payment of Bonus

21. Calculation of set on or set off for the sixth accounting year.-

For the sixth accounting year, set on or set off, as the case may be,shall be made under clause (i) of sub-section (7) of section 26, in the manner illustrated in Schedule A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years.

22. Calculation of set on or set off for the seventh accounting year.-

For the seventh accounting year, set on or set off, as the case may be, shall be made under clause (ii) of sub-section (7) of section 26, in the manner illustrated in Schedule A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

23. Computation of gross profits under clause (a) of section 32.-

The gross profits derived by an employer from an establishment in respect of the accounting year shall in the case of banking company, be calculated in the manner specified in Schedule B.

24. Computation of gross profits under clause (b) of section 32.-

The gross profits derived by an employer from an establishment in respect of the accounting year in a case other than banking company, be calculated in the manner specified in Schedule C.

25. Deduction of further sums under clause (c) of section 34.-

The further sums as are specified in respect of the employer in Schedule D shall be deducted from the gross profit as prior charges under clause (c) of section 34.

26. Manner of carrying forward under sub-section (1) of section 36.-

Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 26, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in such manner as illustrated in Schedule A.

27. Manner of carrying forward under sub-section (2) of section 36.-

Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 26, and there is no amount or sufficient amount carried forward and set on under rule 26 which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in such manner illustrated in Schedule A.

CHAPTER VI

Central Advisory Board

A. Procedure of Central Advisory Board under sub-section (10) of section 42

28. Constitution of the Board.-

(1) The Board shall consist of the persons to be nominated by the Central Government representing employers and employees as specified in clauses (a) and (b) of sub-section (1) of section 42 and the independent persons and representatives of the State Governments as specified in clauses (c) and (d) of that sub-section.

(2) The persons representing employers as referred to in clause (a) of sub-section (1) of section 42 shall be twelve and the persons representing employees referred to in clause (b) of that sub-section shall also be twelve.

(3) The independent persons specified in clause (c) of sub-section (1) of section 42 to be nominated by the Central Government shall consist of the following, namely:-

(i) the Chairperson;

(ii) two Members of Parliament;

(iii) four member search of whom,shall be a professional in the field of wages and labour related issues;

(iv) one member who is or has been a presiding officer of an Industrial Tribunal constituted by the Central Government under section 7A of the Industrial Disputes Act, 1947 (14 of 1947); and

(v) two members, each of whom shall be the Chairperson of such State Advisory Board referred to in subsection (4) of section 42, to the extent possible, has been taken in rotation from the States.

(4) The five representatives of the State Governments referred to in clause (d) of section 42 shall each be the Principal Secretary or Secretary or Commissioner of the State Labour Department of such States as the Central Government may determine from time to time on rotation basis.

(5) The Central Government shall, while nominating the members of the Board, take into account that the independent members under sub-rule (2) shall not exceed one-third of the total members of the Board and one-third of the members of the Board shall be women.

29. Additional functions of the Board.-

In addition to the functions specified in sub-section (3) of section 42, the Board on reference by the Central Government advise that Government on the issue relating to the fixation of minimum wages in respect of-

(i) working journalists as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act,1955 (45 of 1955); and

(ii) sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976).

30. Meeting of the Board. –

The Chairperson may, subject to the provisions of rule 32, call a meeting of the Board,at any time he thinks fit:

Provided that on requisition in writing from not less than one half of the members, the Chairperson shall call a meeting within thirty days from the date of the receipt of such requisition.

31. Notice of meetings. –

The Chairperson shall fix the date, time and place of every meeting and a notice in writing containing the aforesaid particulars along with a list of business to be conducted at the meeting shall be sent to each member by registered post and electronically at least fifteen days before the date fixed for such meeting:

Provided that in the case of an emergent meeting, notice of seven days only may be given to every member.

32. Functions of Chairperson. –

The Chairperson shall-

(i) preside at the meetings of the Board:

Provided that in the absence of the Chairperson at any meeting, the members shall elect from amongst themselves by a majority of votes, a member who shall preside at such meeting;

(ii) decide agenda of each meeting of the Board;

(iii) where in the meeting of the Board, if any issue has to be decided by voting, conduct the voting and count or cause to be counted the secret voting in the meeting.

33. Quorum. –

No business shall be transacted at any meeting unless at least one-third of the members and at least one representative member each of both the employers and an employee are present:

Provided that, if at any meeting less than one-third of the members are present, the Chairperson may adjourn the meeting to a date not later than seven days from the date of the original meeting and it shall thereupon be lawful to dispose of the business at such adjourned meeting irrespective of the number of members present:

Provided further that the date, time and place of such adjourned meeting shall be intimated to all the members electronically or by a Registered post.

34. Disposal of business of the Board.-

All business of the Board shall be considered at a meeting of the Board, and shall be decided by a majority of the votes of members present and voting and in the event of an equality of votes, the Chairperson shall have a casting vote:

Provided that the Chairperson may, if he thinks fit, direct that any matter shall be decided by the circulation of necessary papers and by securing written opinion of the members:

Provided further that no decision on any matter under the preceding proviso shall be taken, unless supported by not less than two-thirds majority of the members.

35. Method of voting.-

Voting in the Board shall ordinarily be by show of hands, but if any member asks for voting by ballot, or if the Chairperson so decides, the voting shall be by secret ballot and shall be held in such manner as the Chairperson may decide.

36. Proceedings of the meetings.-

(1) The proceedings of each meeting of the Board showing inter alia the names of the members present thereat shall be forwarded to each member and to the Central Government as soon after the meeting as possible, and in any case, not less than seven days before the next meeting.

(2) The proceedings of each meeting of the Board shall be confirmed with such modification, if any, as may be considered necessary at the next meeting.

37. Summoning of witnesses and production of documents.-

(1) The Chairperson may summon any person to appear as a witness if required in the course of the discharge of his duty and require any person to produce any document.

(2) Every person who is summoned and appears as a witness before the Board shall be entitled to an allowance for expenses by him in accordance with the scale for the time being in force for payment of such allowance to witnesses appearing before a civil court.

38. Appointment of the committees.-

The Central Government may constitute as many committee under clause (a) of sub-section (1) of section 8 as it considers necessary for the purposes specified in that clause.

B. Terms of office of members of the Board under sub-section (11) of section 42

39. Term of office of members of the Board.-

(1) The term of office of the Chairperson or a member, as the case may be, shall be normally two years commencing from the date of his appointment or nomination, as the case may be, under sub-section (1) of section 42:

Provided that such Chairperson or a member shall, notwithstanding the expiry of the said period of two years, continue to hold office until his successor is appointed or nominated, as the case may be.

(2) An independent member of the Board nominated to fill a casual vacancy shall hold office for the remaining period of the term of office of the member in whose place he is nominated.

(3) The official members of the Board shall hold office till they are replaced by respective such other official members.

(4) Notwithstanding anything contained in sub-rules (1), (2), and (3), the members of the Board shall hold office during the pleasure of the Central Government.

40. Travelling allowance.-

The Chairman and every member of the Board, shall be entitled to draw travelling and halting allowance for any journey performed by him in connection with his duties at the rates and subject to the conditions applicable to a Group A officer of the Central Government.

41. Officers and Staff.-

The Central Government may provide a Secretary not below the rank of Joint Secretary to the Government of India, other officers and staff to the Board, as it may think necessary for the functioning of the Board.

42. Eligibility for re-nomination of the members of the Board.-

An outgoing member shall be eligible for re-nomination for the membership of the Board for not more than total two terms.

43. Resignation of the Chairperson and other members of the Board.-

(1) A member of the Board, other than the Chairperson, may, by giving notice in writing to the Chairperson, resign his membership and the Chairperson may resign by a letter addressed to the Central Government.

(2) A resignation shall take effect from the date of communication of its acceptance or on the expiry of 30 days from the date of resignation, whichever is earlier.

(3) When a vacancy occurs or is likely to occur in the membership of the Board, the Chairperson shall submit a report to the Central Government immediately and the Central Government shall, then, take steps to fill the vacancy in accordance with the provisions of the Code.

44. Cessation of membership.-

If a member of the Board, fails to attend three consecutive meetings,without prior intimation to the Chairperson, he shall, cease to be a member thereof.

45. Disqualification.-

(1) A person shall be disqualified for being nominated as, and for being a member of the Board–

(i) if he is declared to be of unsound mind by a competent court; or

(ii) if he is an un-discharged insolvent; or

(iii) if before or after the commencement of the Code, he has been convicted of an offence involving moral turpitude.

(2) If any question arises whether a disqualification has been incurred under sub-rule (1), the decision of the Central Government thereon shall be final.

CHAPTER VII

PAYMENT OF DUES, CLAIMS, etc.

46. Payment under clause (a) of sub-section (1) of section 44.-

Where any amount payable to an employee under the Code is due after his death or on account of his whereabouts not being known, and the amount could not be paid to the nominee of the employee until the expiry of three months from the date the amount had become payable, then, such amount shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having jurisdiction, who shall disburse the amount to the person nominated by the employee after ascertaining his identity within two months of the date on which the amount was so deposited with him.

47. Deposit of the undisbursed dues under clause (b) of sub-section (1) of section 44.-

(1) Where any amount payable to an employee under this Code remains undisbursed because either no nomination has been made by such employee or for any other reason, such amounts could not be paid to the nominee of employee until the expiry of six months from the date the amount had become payable, all such amounts shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having jurisdiction before the expiry of the fifteenth day after the last day of the said period of six months.

(2) The amount referred to in sub-rule (1) shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having jurisdiction through bank transfer or through a crossed demand draft obtained from any scheduled bank in India drawn in favour of such Deputy Chief Labour Commissioner (Central).

48. Manner of dealing with the undisbursed dues under clause (b) of sub-section (1) of section 44. —

(1) The amount referred to in sub rule (1) of rule 47 (hereinafter in this rule referred to as the amount) deposited with the Deputy Chief Labour Commissioner (Central) having jurisdiction shall remain with him and be invested in the Central or State Government Securities or deposited as a fixed deposit ina scheduled bank.

(2) The Deputy Chief Labour Commissioner (Central) having jurisdiction will exhibit, as soon as maybe possible, a notice containing such particulars regarding the amount as the Deputy Chief Labour Commissioner (Central) considers sufficient for information at least for fifteen days on the notice board and also publish such notice in any two newspapers being circulating in the language commonly understood in the area in which undisbursed wages were earned.

(3) Subject to the provision of sub-rule (4), the Deputy Chief Labour Commissioner (Central) having jurisdiction shall release the amount to the nominee or to that person who has claimed such amount,as the case may be,in whose favour such Deputy Labour Commissioner (Central) has decided,after giving the opportunity of being heard, the amount to be paid.

(4) If the undisbursed amount remains unclaimed for a period of seven years, the same shall be dealt within the manner as directed by the Central Government from time to time in this behalf.

CHAPTER VIII

FORMS, REGISTERS AND WAGE SLIP

49. The form of a single application. –

A single application, may be filed under sub-section (5) of section 45 in Form-II along with documents specified in such Form.

50. Appeal.-

Any person aggrieved by an order passed by the authority under sub-section (2) of section 45 may prefer an appeal under sub-section (1) of section 49 in Form-III,along with documents mentioned by the appellant in such Form, to the appellate authority having jurisdiction.

51. Form of register, etc.-

(1) all fines and all realizations thereof referred to in sub-section (8) of section 19 shall be recorded in a register to be kept by the employer in form – i appended to these rules, electronically or otherwise and the authority referred to in said sub-section (8) shall be the Deputy Chief Labour Commissioner (Central) having jurisdiction.

(2) All deductions and all realizations referred to in sub-section (3) of section 21 shall be recorded in a register to be kept by the employer in Form- I appended to these rules, electronically or otherwise.

(3) Every employer of an establishment to which the Code applies shall maintain registers under sub-section (1) of section 50 in Form I and Form IV, electronically or otherwise.

52. Wage slip.-

Every employer shall issue wage slips, electronically or otherwise to the employees in Form V under sub-section (3) of section 50 on or before payment of wages.

53. Manner of holding enquiry under sub-section (1) of section 53.-

(1) When a complaint is filed before the officer appointed under sub-section (1) of section 53 (hereinafter in this rule referred to as the officer) in respect of the offences referred to in said sub-section either by an officer authorized for such purpose by the Central Government or by an employee aggrieved or a registered trade union registered under the Trade Unions Act, 1926 or an Inspector-cum-Facilitator, the officer,after considering such evidences as produced before him by the complainant, is of the opinion that an offence has been committed, shall issue summons to the offender on the address specified in the complaint fixing a date for his appearance .

(2) If the offender to whom the summons has been issued under sub rule (1) appears or is produced before the officer, he shall explain the offender the offence complained against him and if the offender pleads guilty, the officer shall impose penalty on him in accordance with the provisions of the Code and when the offender does not plead guilty, the officer shall take evidence of the witnesses produced by the complainant on oath and provide opportunity of cross examination of the witnesses so produced . The officer shall record the statement of the witnesses on oath and in cross examination in writing and take the documentary evidence on record.

(3) The officer shall after the complainant’s evidence is complete, provide opportunity of defence to the accused person and the witnesses produced by the accused shall be cross examined after their statements on oath by the complainant and documentary evidence in defence shall be taken on record by the officer.

(4) The officer shall after hearing the parties and considering the evidences both oral and documentary decide the complaint in accordance with the provisions of the Code.

54. The manner of imposing fine under sub-section (1) of section 56.-

(1) An accused person desirous of making composition of offence under sub-section (1) of section 56 may make an application in Form VI electronically or otherwise to the Gazetted Officer notified under said sub-section (1).

(2) The Gazetted Officer referred to in sub-rule (1), shall, on receipt of such application, satisfy himself as to whether the offence is compoundable or not under the Code and if the offence is compoundable and the accused person agrees for the composition, compromise the offence for a sum of fifty per cent of the maximum fine provided for such offence under the Code, to be paid by the accused within the time specified in the order of composition issued by such officer.

(3) Where the offence has been compromised under sub-rule (2) after the institution of the prosecution, then, the officer shall send a copy of such order made by him for intimation to the officer referred to in sub-section (1) of section 53 for needful action under sub-section (6) of section 56.

CHAPTER IX

MISCELLANEOUS

55. Timely Payment of Wages.-

Where the employees are employed in an establishment through contractor, then, the company or firm or association or any other person who is the proprietor of the establishment shall pay to the contractor the amount payable to him or it, as the case may be, before the date of payment of wages so that payment of wages to the employees shall be made positively in accordance with the provisions of Section 17.

Explanation.-For the purpose of this rule, the expression “firm” shall have the meaning as assigned to it in the Indian Partnership Act, 1932 (9 of 1932).

56. Technical Committee for working Journalist.-

The Central Government may, for the purpose of fixing minimum wages under the code for the working journalist as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955(45 of 1955), appoint a technical advisory committee under clause (a) of sub-section (1) of section 8 to recommend the Central Government in respect of such fixation.

57. Responsibility for payment of minimum bonus.-

Where in an establishment, the employees are employed through contractor and the contractor fails to pay minimum bonus to them under section 26, then, the company or firm or association or other person as referred to in the proviso to section 43 shall, on the written information of such failure, given by the employees or any registered trade union or unions of which the employees are members and on confirming such failure, pay such minimum bonus to the employees.

58. Inspection scheme.-

(1) For the purposes of the Code and these rules, there shall be formulated an inspection scheme by the Chief Labour Commissioner (Central) with the approval of the Central Government.

(2) In the inspection scheme referred to in sub-rule (1), apart from other structural facts, a number shall be specified in the scheme for each Inspector-cum-Facilitator and establishment.

[F. No. S-32017/01/2019-WC]
VIBHA BHALLA, Jt. Secy.

Part 3 | Criticism of Indian Labour Laws, a view of capital / Business

2020-07-23T11:45:00.001-07:00

Appointment Letter Mistakes, Can Cause “Huge Damage” to your Company | E...

2020-06-20T11:54:00.001-07:00

Bonus Calculation Under Section 12 of the Act

2018-04-30T09:06:00.000-07:00

About Latest Amendment

The most significant latest change in the act are wage eligibility limit increased from INR 10,000 to INR 21,000 and the calculation ceiling from INR 3,500 to INR 7,000 or the minimum wage notified by the appropriate Government for that category of employment, whichever is higher was incorporated . Taking into due consideration the demands provided by the trade unions in relation to amendments to be carried out to the Payment of Bonus Act, 1965 (Principal Act), the Payment of Bonus (Amendment) Bill, 2015 (Amendment Bill), was passed on 22 December 2015. And then the Amendment Bill passed by the Rajya Sabha on 23 December 2015 and being called the Payment of Bonus (Amendment) Act, 2015 (Amendment Act), received the assent of the President of India on 31 December 2015.

History

The Principal Act provides mandatory annual payment of bonus to all the eligible employees of establishments with 20 or more persons. Employees who draws a salary of INR 10,000 or below per month and worked for not less than 30 days in a Financial year is eligible for bonus.

Overview of Amendment

Amendment of Eligibility Limit

Amendment in Section 2(13) of the Principal Act, the Amendment Act has now increased the scope of employees eligible for payment of bonus from those drawing salary of INR 10,000 per month, to INR 21,000 per month.

The act covers the employee who earns between INR 10,000 and INR 21,000 per month.

Calculation of Bonus

Section 12 of the Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage, whichever is higher.

The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating bonus, the salary was to be assumed to be INR 3,500 per month. To maximise employee bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 or the minimum wage payable to such employees may be over INR 7,000, this gives an opportunity to the employees the flexibility to draw a higher amount as bonus.

Conclusion: Bonus payable to an employee shall be prorated basis the number of days worked during the respective year, minimum wages of respective state and 7000 INR which so ever is higher.

Pradhan Mantri Rojgar Protsahan Yojana

2018-04-27T09:14:00.000-07:00

As per the recent amendment in the guidelines the Government of India will be paying full 12% employer's contribution (EPF and EPS both) w.e.f. 1st April 2018 for a period of three years to the new employees and to the existing PMRPY beneficiaries for their remaining period of three years through EPFO.

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed for the generation of new employment. This scheme has double benefits, where, one side, the employer will be given incentive for increasing the employment base of workers in the establishment, and on the other, a large number of workers will find jobs in such establishments.

Conditions/Process for claiming benefit under PMRPY Plan Scheme

1. Applicable for Employees (Semi-skilled/unskilled)

· Employees covered must have Aadhar number

· UAN should be updated with Aadhaar and verified

· Employee Should not have Universal Account number (UAN) prior to 01-04-2016

· Gross Salary must be less than Rs. 15001/- per month

Note : Gross Salary has not been defined under PF Act and Pradhan Mantri Rojgar Protsahan Yojana(PMRPY) Plan Scheme. As per our opinion Gross Salary means CTC Less Statutory Employer Contribution (Employer ESI, Employer PF, Gratuity (if part of CTC) etc.)

· 12% Employer’s contribution will be paid by Government of India if submits employees details at PMRPY portal and deposit provident fund dues on or before 10^th of the following month.

2. Details/documents required for Registration at https://pmrpy.gov.in

· Cancelled cheque of Company

· Select appropriate Class and Sub-class.

Employers/Establishments applying for the Scheme shall be fully responsible for the information uploaded. If at any time, it is found that the information submitted is incorrect or false, it will be assumed that Employer contribution payment has not been made for these employees. The employer will then be liable for dues and penalties (Interest u/s 7Q 12% and Damages u/s 14B [5%-25%] ) as already specified under the relevant provisions of The Employees' Provident Fund Scheme, 1952.