The document discusses various Indian labor laws regarding minimum wages, bonus payments, provident funds, gratuity, and leave policies. It provides details on: 1) Minimum wage rates that were set in India in 1996, 1998, and 1999 based on recommendations to ensure a basic subsistence level. 2) Eligibility and calculation methods for bonus payments under the Bonus Act, such as a minimum bonus of 8.33% of wages for those earning up to Rs. 3,500 per month. 3) Employee and employer contribution rates and caps for provident funds under the Employees' Provident Fund Act. 4) Contribution rates of 1.75% of basic wages for the Employees'

1.  Settlement Calculations

2. MINIMUM WAGES
The concept of Minimum Wages was first
evolved by ILO in 1948 with reference to
remuneration of workers in those industries

3. The 28th Indian Labour Conference in
1985 recommended a national basic subsistence
level wage below which no wages may
be fixed regardless of the nature of work, nature
of employment and other considerations.
Rs,35/- per day in 1996
Rs.40/-per day in 1998 and further to Rs.45/- w.e.f.
30.11.1999,

4. In sub-section 3) of Section 26
(i) In a factory where there is carried on any
scheduled employment in respect of which
minimum rates of wages have been fixed
under this Act, any person named under
clause (f) of sub-section (1) of Section 7 of the
Factories Act, 1948, as manager of the factory

5. (ii) in any scheduled employment under the
control of any Government in India in respect
of which minimum rates of wages have been
fixed under this Act, the person or authority
appointed by such Government for the
supervision and control of employees or where
no person of authority is so appointed the
Head of the Department .

6. Minimum wage fixation… Rates can be fixed on
basis of hour, day or month, or even larger
period. [section 3(3)(b)]. - - The rate shall
consist of basic rate of wages with or without
allowance for cost of living allowance based
on ‗cost of living index number.

7. Bonus Act
 According to the bonus act 1965 Every factory
(as def. in Factories Act),
ii) Employees‘ who are drawing remuneration
of Rs. 3,500/- or more and those who are not
worked 30 days they are not eligible to receive
bonus under the Act.
iii) Bonus to be paid within eight months from
the expiry of the accounting year.

8. Eligilibity
 Every person (other than an apprentice)
drawing salary up to RS 3,500 per month.
 More Than 4000 his/her basic means we
Should Take maximum Basic as 3750 for
bonus calculation.

9.  Subject to other provisions :— Minimum bonus
shall be 8.33% of salary/wages earned or RS
100 whichever is higher.

10.  Roll Employees : Basic/ Month Days* No of
days Present = Total months*8.33%
For e.g. : basic: 2445 ,month : January means
No of days present : 30
2445/31*30= 2336* 8.33% = 197
 Trainee Employees :: Basic/ Month days * No
of Days Present = Total Months* 8.33%* 60%

11. EMPLOYEES’ PROVIDENT FUND
ACT1952
 The object of the Act is the institution of
compulsory contributory Provident Funds,
Pension and Insurance for employees.
 12% From Employee Contribution From his
basic :
 Basic*12%
For eg: 2445*12%= 293

12.  More than 6500 basic means As per rules
we Should taken 780 as maximum contribution
of PF Scheme
Calculation
Basic :7519 means
We Should taken this calculation : 780/Month Days *
Working days
For eg: 780/31(month January means : 31) * If he is
coming 21 days means
780/31*21=528

13. THE EMPLOYEES’ STATE
INSURANCE SCHEME
 The ESI Act provides for health care and cash
benefit payments in the case of sickness,
maternity
 The ESI Scheme is operated in 678 centres
and employment injury.
 As of now, over 78.65 lakh insured persons
and about 303.73 lakh beneficiaries are
covered under the Scheme.

14.  Calculation
Basic*1.75% = 2445*1.75%= 42.7
Not Applicable for more than Getting salary
1,80,000 P.A.

15.  ESI MEDICAL INFRASTRUCTURE (As on
31.3.2003)
 Number of ESI Hospitals 142
 Number of ESI Annexes 43
 Number of Beds constructed in ESI Hospitals
23,856
 Number of Beds in ESI Annexes 867
 Number of Beds Reserved in State Govt. Hospitals.
4000
 Number of Insurance Medical Practitioners (IMPs)
6812
 Number of ESI Dispensaries 1447
 Number of Panel Clinics 2651

16. The Payment of Gratuity Act
 The Payment of Gratuity Act, 1972 applies to
factories and other establishments employing
ten or more persons. On completion of five
years service, the employees are entitled to
payment of gratuity @15 days wages for every
completed year of service or part thereof in
excess of six months subject to a maximum of
Rs.3.50 lakh.

17.  In Gratuity We should submit two
Form F
Form I
 It’s a nominee form in case any death or
anything happen means who next authorized
person to get the amount.

18. Calculation
 Basic*15/26* no. of years
e.g. : Basic = Rs. 10,000/-
No. of years = 5 years
Gratuity = 10,000*15/26*5
= Rs. 28,846.15/-

19. HRA
As per the Indian income tax law, the HRA
exemption should be calculated as the least of
the following.
1. Rent paid in excess of 10% of basic salary.
2. Actual HRA received by the employee.
3. Forty percent of basic salary, if the location
of the residence is in a non-metro city/town or
50% of basic salary, if the location of the
residence is in a metro city

20. Leave Credit
 As per the factory law we should given
1.25Days leave per month If his/her Not taken
leave we should give as a salary
 Holiday Wages
Festival or National Holidays we should given
salary if he is present means we should given
double salary
Calculation: Basic/Month days* Holidays Days

21. Allowances
As per Factories law We should given
Medical Allowance
Education Allowance
Calculation:
Medical Allowance
Half of the Basic Salary/12* no of month
Education Allowance
67rs * No of month