Compulsory components to be included in salary

1. >>> Gratuity for Contract Employee

Replied at another thread initiated by you at:

https://www.lawyersclubindia.com/forum/Gratuity-for-contract-employees-84504.asp#.UtllCtK6a3Z

Section 21(4) of the Contract Labour Act, it is the principal employer who is bound to pay the gratuity even in respect of a Contract Labourer.

Even the contractor liability to pay Gratuity can be fastened on principle employer.

Madras High Court

The Superintending Engineer vs Appelalte Authority/ on 23 June, 2011

https://www.indiankanoon.org/doc/90459042/?type=print

2.>>>  Deduction of PF, ESIC, from the contract worker and the contribution from the Contractor (immediate employer) have to be paid by the Principal Employer and thereafter to be recovered from the Contractor......................

>> ESIC:

Employees' State Insurance Act, 1948

https://www.esic.nic.in/esi_act.php

https://www.esic.nic.in/Tender/ESIAct1948Amendedupto010610.pdf

2. Definitions: (9) “ employee ” means...........

(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or 3 establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment

40. Principal employer to pay contributions in the first instance

41. Recovery of contributions from immediate employer. —

>> For Def. Of Wages as per ESIC go thru;

https://www.esic.nic.in/wages.php

>>> PF:

THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

(Act No. 19 of 1952)

https://www.epfindia.com/EPFAct1952.pdf

2. Definitions. -

(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-

(i) employed by or through a contractor in or in connection with the work of the establishment;

3. Group Insurance: It is in fact for the benefit of employer as the cost shall be born by insurance contract up to the limits of liability or the employer may have to bear the cost from his resources.

There is a possibility of ‘Conversion’ also in such possibility to convert to individual insurance.

4. Employer’ contribution can not be recovered from employee.

The salary sheet looked into by you might infact be CTC sheet.

If Gratuity is mentioned in CTC sheet/annual wages you may have a chance to lay a claim to it.

There have been threads initiated by LIC employees with similar queries.