There are provision in most acts about how to pay statutory dues on piece rate.
Mostly there should not be a problem. The number of days here will be more academic. The impact will be more on other requirement like permanency (240 days rule)
Please do not forget that the law also requires that those getting paid on piece rate should get minimum wages. So you should put a daily rate as per minimum wages as his basic + da and the balance as variable pay / incentive, etc. then the number of days must be properly accounted for in the muster.
I will wait for others to comment on whether this is a sensible thing to do
From India, Mumbai
2395Mostly there should not be a problem. The number of days here will be more academic. The impact will be more on other requirement like permanency (240 days rule)
Please do not forget that the law also requires that those getting paid on piece rate should get minimum wages. So you should put a daily rate as per minimum wages as his basic + da and the balance as variable pay / incentive, etc. then the number of days must be properly accounted for in the muster.
I will wait for others to comment on whether this is a sensible thing to do
From India, Mumbai
Dear All,
Greetings for the day,
Gone through the query, but the solution suggested by Mr. Rajeev is also found true, but this is only possible in case of ESIC, not for EPF . But mind it when the same amount is deducted on bills this can be never be simple task. The piece rate worker never allowed you to do so. One thing only i would like to suggest that convert the piece rate payment into the salary rate i.e mark the salary of all piece rate worker above Rs. 15,000/- i.e Rs. 15,050/- or Rs. 15,100/- and kept basic above Rs.6500/- by this your EPF & ESIC liablity should be saved & rather to book piece rate in balance sheet which increase your tax liablity also be saved by booking same amount in salary & wages head.UPTO Rs. Two Lac p.a there is no tax liablity.Go through it.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Greetings for the day,
Gone through the query, but the solution suggested by Mr. Rajeev is also found true, but this is only possible in case of ESIC, not for EPF . But mind it when the same amount is deducted on bills this can be never be simple task. The piece rate worker never allowed you to do so. One thing only i would like to suggest that convert the piece rate payment into the salary rate i.e mark the salary of all piece rate worker above Rs. 15,000/- i.e Rs. 15,050/- or Rs. 15,100/- and kept basic above Rs.6500/- by this your EPF & ESIC liablity should be saved & rather to book piece rate in balance sheet which increase your tax liablity also be saved by booking same amount in salary & wages head.UPTO Rs. Two Lac p.a there is no tax liablity.Go through it.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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