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I work for a PSU and we have hired labour on daily wages through contractors, although we make monthly payment of wages. Now, we are deducting PF for any national holiday. My question is that wages paid to workers for national holidays is to be treated as a part of basic wages or not?
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Obviously you must deduct the PF for the wages paid for National/Festival Holidays to all the workers including the Contract Workers.
There is a slight confusion as few contractors are firmly stating that the wages paid on national holidays are over and above basic wages therefore are not a part of basic wages of daily wage contract workers hence PF should not be deducted for national holidays. Can you please tell what would be the wages paid on national holidays called and whether their assertion is correct or not?
Dear Rakesh
As a matter of fact, the wages will be paid for the National / festival Holidays even the workers are not present on that day. If they work on those days you must pay double Overtime (it will not attract PF) in addition to the Regular Wages for the holiday. So on any national / festival holiday if one engaged then the company has to give them with normal pay alongwith OT.
It’s mandotary to take signature of previous employer on PF withdraw Form. Regards:- Shriti Gulati
Provident fund contribution is to be deducted from wages paid for national holidays or even for weekly offs. This is considered as Basic wage only.
Wages paid for National holiday are to be treated like wages paid for other day only hence PF is to be deducted from employee;s salary and same to be contributed by employer.
This with reference to the wages paid on National holidays. The basic issue is in as much as the labourers employed are on daily wages notwithstanding the fact that the wages paid once in a month, is there any need to pay for the National Holiday? National or any other holiday is for the regular employees and not for the daily wage earners. If at all the labourers needs to be paid on National holidays, it is the duty of the contractor since it is he who need to retain his labor force and not the hiring company. comments and clarifications are welcome
Hi All,
National /festival holiday need to be paid for employees whether they paid daily or monthly.
ESI/PF contribution also to be deducted and paid on national/festival wages.
Hope this is clear now.
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