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
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 ?
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.
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.
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.
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
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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