Sub.: “Minimum rates of Wages shall be the basic rate of Wages”
Punjab Government Notification No. S.O.6/C.A.11/1948/S.5/2012 dt. 17.02.2012, inserting Note No. 10-A in the Minimum Wages Notification dt. 06.1.2009 – Implication regarding.
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Dear friends
The Government of Punjab has issued final notification bearing No. S.O.6/C.A.11/1948/S.5/2012 dt. 17.02.2012, inserting Note No. 10-A in the Minimum Wages Notification dt. 06.1.2009, which says as under:-
“10-A. The minimum rates of wages so fixed by the Government of Punjab shall be the basic rates of wages”.
Earlier the State Government vide Notification No. S.O. 65/C.A.11/1948/S.5/2011 dated 14.07.2011, published in official gazette on 22.07.2011, issued an intention notification of 2 months under clause (b) of sub-section (1) of section 5 of the Minimum Wages Act, 1948, inviting objection or suggestion from any person likely to be affected on the said proposed amendment.
Implications:-
In view of the said notification, the minimum wages shall be the basic wages and there shall be no components forming part of minimum wages. It is seen that in some industries the employers use to pay to their employees a wage packet comprising of various allowances, which is equivalent to minimum rates of wages or slightly higher than that. Now, with this notification all such wage packages have to be reconsidered and rearranged.
The said notification shall have long lasting implications both direct and indirect to the carry home salary of the employee as well as to the annual benefits being enjoyed by them and also to the exchequer of the employers.
The different statutes defined the term “wages” in different manner such as EPF & MP Act, ESI Act, Payment of Bonus Act and Payment of Gratuity Act etc. Resultantly the employers and employees shall have to contribute more towards PF, in view of the present amendment terming the basic rates of minimum wages as basic rates of wages, thus the carry home salary of the employees would stand reduced to that extent.
Similarly in Payment of Bonus Act, the bonus is payable on Basic wages plus D.A. (if any) and so also under the Payment of Gratuity Act. The annual Bonus and the gratuity payable to the employees will also be increased.
Date of applicability of the Notification:-
In view of sub-section (2) of section 5 of the Act, the above notification shall come in to force on the expiry of three months from the date of its issue/publication. It may be added that when the minimum rates of wages were revised vide notification dt. 06.01.2009, it was specifically made applicable retrospectively from 01.09.2008. However, in the present notification the date of applicability of notification is not given. It is worth adding here that it is an accepted principle of interpretation of statutes, that unless a statute has been made expressly retrospectively, it must be taken to be prospective. Thus I am of the opinion that the present notification shall come in to effect after the expiry of three months from the date of its issue/publication.
All concerned are requested to take the note of the same and do the needful accordingly, so that there shall not be any violation of the Acts.
The copy of above notification may be obtained from my office.
With regards
From India, Ludhiana
10Punjab Government Notification No. S.O.6/C.A.11/1948/S.5/2012 dt. 17.02.2012, inserting Note No. 10-A in the Minimum Wages Notification dt. 06.1.2009 – Implication regarding.
----------------------------------------------------------------------
Dear friends
The Government of Punjab has issued final notification bearing No. S.O.6/C.A.11/1948/S.5/2012 dt. 17.02.2012, inserting Note No. 10-A in the Minimum Wages Notification dt. 06.1.2009, which says as under:-
“10-A. The minimum rates of wages so fixed by the Government of Punjab shall be the basic rates of wages”.
Earlier the State Government vide Notification No. S.O. 65/C.A.11/1948/S.5/2011 dated 14.07.2011, published in official gazette on 22.07.2011, issued an intention notification of 2 months under clause (b) of sub-section (1) of section 5 of the Minimum Wages Act, 1948, inviting objection or suggestion from any person likely to be affected on the said proposed amendment.
Implications:-
In view of the said notification, the minimum wages shall be the basic wages and there shall be no components forming part of minimum wages. It is seen that in some industries the employers use to pay to their employees a wage packet comprising of various allowances, which is equivalent to minimum rates of wages or slightly higher than that. Now, with this notification all such wage packages have to be reconsidered and rearranged.
The said notification shall have long lasting implications both direct and indirect to the carry home salary of the employee as well as to the annual benefits being enjoyed by them and also to the exchequer of the employers.
The different statutes defined the term “wages” in different manner such as EPF & MP Act, ESI Act, Payment of Bonus Act and Payment of Gratuity Act etc. Resultantly the employers and employees shall have to contribute more towards PF, in view of the present amendment terming the basic rates of minimum wages as basic rates of wages, thus the carry home salary of the employees would stand reduced to that extent.
Similarly in Payment of Bonus Act, the bonus is payable on Basic wages plus D.A. (if any) and so also under the Payment of Gratuity Act. The annual Bonus and the gratuity payable to the employees will also be increased.
Date of applicability of the Notification:-
In view of sub-section (2) of section 5 of the Act, the above notification shall come in to force on the expiry of three months from the date of its issue/publication. It may be added that when the minimum rates of wages were revised vide notification dt. 06.01.2009, it was specifically made applicable retrospectively from 01.09.2008. However, in the present notification the date of applicability of notification is not given. It is worth adding here that it is an accepted principle of interpretation of statutes, that unless a statute has been made expressly retrospectively, it must be taken to be prospective. Thus I am of the opinion that the present notification shall come in to effect after the expiry of three months from the date of its issue/publication.
All concerned are requested to take the note of the same and do the needful accordingly, so that there shall not be any violation of the Acts.
The copy of above notification may be obtained from my office.
With regards
From India, Ludhiana
OK
Took note of that but:
does this notification amended the act (EPF or Minimum wage)?
and does it also issued in Gazette of India?
does the EPFO gave any statement approving to the above notification?
and last question the Principal Secretary to Government of Punjab has the power to overthrow the HIgh Court judgement (Minimum wage not equal to Basic wages)?
And the Notification is in the attachment (dated 17/02/2012)
Stay Cool,
Atom
From India, Phagwara
Took note of that but:
does this notification amended the act (EPF or Minimum wage)?
and does it also issued in Gazette of India?
does the EPFO gave any statement approving to the above notification?
and last question the Principal Secretary to Government of Punjab has the power to overthrow the HIgh Court judgement (Minimum wage not equal to Basic wages)?
And the Notification is in the attachment (dated 17/02/2012)
Stay Cool,
Atom
From India, Phagwara
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