Payment of Bonus

Greetings,

For Maharashtra state, which are the cities covered under ZONE I, Zone II and ZONE III for determining the minimum wages?

What is minimum wage for Skilled employee in Pune who is working in IT & ITES industry?

If the basic salary of an employee is 20,700 /month and DA is zero then the bonus should be calculated as 20,700 * 8.33% or the minimum wage*8.33%? Considering the employee is skilled labour in IT industry

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Hi Megha,

Greetings!

Please refer to this notification - Maharashtra Minimum Wages Notification - Jan 2023

This may be of help to you.

Regards,
Bhuvana Anand

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Hi Bhuvana,

Can you also share for Karnataka’s minimum wage for 2023… Thank you :slight_smile:

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Hi Bhuvna,
Thank you for sharing the notification. But I am unable to understand which category is applicable to us.
As per shop and establishment act we are registered as an IT company, can you please confirm which category we will fall into ?

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Hi Ludy,

Been longtime! :slight_smile:

You will find all updates relating to Karnataka MW here - Karnataka Minimum Wages Final Notification

and in the same page you will see the previous notifications, updates, etc.

Hope this helps.

Regards,
Bhuvana Anand

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Hi Megha,

I will try to get you the details. Give me some time.

Regards,
Bhuvana Anand

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Hi,

PFA Minimum wages of Karnataka.

Regards,
Durga Devi.K

the-karnataka-minimum-wages-notification-april-2023.pdf (635 KB)

the-karnataka-minimum-wages-notification-for-security-services-april-2023.pdf (1.05 MB)

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Hi,

PFB details which may help.

Group A - Comprising the developed areas, viz. Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR).
Group B - Comprising the areas where some development has taken place.
Group C - Comprising the areas, which are less developed than those at Group B.
Group D - Comprising the lesser-developed areas of the State not covered under Group A / Group B / Group C.
Group D+ - Comprising those least developed areas not covered under Group A / Group B / Group C / Group D.
Zones in Maharashtra as classified by the Ministry of Labour Zone I - Comprise of the area falling within the limits of all ‘A’ and ‘B’ class Municipal Corporations Zone II - Comprise of the areas falling within the limits of all ‘C’ and ‘D’ class Municipal Corporation and ‘A’ class of Municipal Councils and Cantonment areas Zone III - Comprise of all other areas in the state, which are not included in Zone I and Zone II.

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Hi Bhuvana,

Yea!!
I really wanted to at least have seen you guys in person last time… but no chance…

Thank you for the information… By the way do you have a circular or notification mentioning that those working in NCR are exempt from pf tax?

:slight_smile:

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Hi Ludy,

We can connect through here :).

Are you inquiring about the Profession Tax?
If yes, PT is applicable in certain states and are not applicable to certain states.
Here is a reckoner for the same.

Regards,
Bhuvana Anand

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Hi Dear,

Thanks,

So if we have an employee based in Delhi, we will not deduct PF tax though company is in Karnataka?

Best regards,

Ludymar Bernal

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Hi Ludy,

The Professional Tax is deducted based on the work location. If the employer have more than one office location, employer have to register for each of these office (if it comes under any State that has PT applicability) to deduct the PT as per that state’s applicable slab.

Regards,
Bhuvana Anand

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Dear Bhuvana,

But what if the company is not registered in that state, just that there was a project in that area, will we deduct or not deduct?

Thanks again :slight_smile:

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Dear Ludy,

In that scenario you will go by the employment contract in which you would mention the work location/base location of the employee (other than the project base which generally keeps changing based on your project location). Accordingly, the PT slab will apply.

Regards,
Bhuvana Anand

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Is it mandatory for employer to give 20% bonus if employer has made profits?
Or any percentage between 8.33 % to 20% can be given as bonus?

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Not mandatory to give 20% bonus.
minimum is 8.33% and max is 20%
Depending on the Managment it can be between the min and max limit.
Generally in a manufacturing company the Bonus gets decided in the discussion between management and workers (f there is a union)
in other companies the management decides it

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The employer at first calculates his gross profit, and then makes certain deductions specified under section 6 of the Act, after this the amount so received is “Available Surplus ”. Now from the available surplus, the employer calculates a certain percentage in accordance to sec 2(4), the amount so received is “Allocable Surplus ”.

In case the allocable surplus is more than the amount payable as bonus to the employees as a minimum bonus, then in such case, the employer shall pay bonus on the salary/wage earned by the employee in that year to a maximum 20%

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The minimum wage act parameters are not same state to state. Is fitting an employee either into respective Zones or Skills is practically possible, when employee change locations frequently?

Somes states follow minimum wage per day, other states follow per month. finding difficult to design a system.

How others do?

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