Employees in India
- Opening Hours
- Legal Weekly Duration
- Maximum 48 hours (9 hours a day).
- Maximum Duration
The total number of working hours (including overtime) should not exceed 60 in a week and the total overtime hours should not exceed 50 in a quarter.
- Night Hours
10 pm until 7 am.Women are banned from working in night except in certain sectors like Information Technology and Medical services.
- Working Rest Day
- In general, Saturday and Sunday are not working days, but this is not the case in all companies.
- Paid Annual Vacation
- The number of leave days varies from State to State. The total number of leaves may vary from 15 days to 30 days in a year.
- Retirement Age
- It varies from 58 to 65 years. Early retirement schemes called Voluntary Retirement Scheme (VRS) also exist in the country.
- Child Labor and Minimum Age For Employment
- Though the Child Labor Act -1986 prohibits work by children under 14 years in factories, mines, domestic work, roadside eateries and other hazardous industries. However, a child assisting his/her family is exempt from the provisions of the Act.
- Informal Labor Market
- The informal labor is called ‘unorganized labor’ in India. As per the latest report ((Year 2007) of National Commission for Enterprises in the Unorganised Sector ?NCEUS (www.nceus.gov.in), there are 396 million workers in India's unorganised sector, which constitute 93% of the total labour force available in India.
The Cost of Labor
- Minimum Wage
- The national minimum wage has last been revised upwards to INR 66 per day with effect from 1.02.2004. All the State Governments have been requested by the country’s Labor Ministry to ensure fixation/revision of minimum rates of wages not below INR 66 per day.
- Average Wage
- On an average, the industrial wages range from about USD3 per day for unskilled workers, to over USD150 per month for skilled production workers.
- Other Forms of Pay
- Pay For Overtime
Any worker working for more than the maximum prescribed time is entitled to wages in respect of such overtime work at twice the ordinary rate of wages.
Industrial units are required to pay a minimum bonus to his employees even if the unit suffers losses during the fiscal year.
Social Security Costs
- The Areas Covered
- Provident fund and survivor (deposit-linked) insurance, pension scheme, gratuity scheme, social assistance.
- Contributions Paid By the Employer:
Contributions by Employer
3.67% of monthly payroll, plus 1.1% of monthly payroll for administrative costs.
Survivor (deposit-linked) Insurance
0.5% of monthly payroll, plus 0.01% of monthly payroll for administrative costs.
8.33% of monthly payroll.
An average of 4% of monthly payroll.
Contributions Paid By the Employee:
Contributions by Employee
Contributions by Government
- Competent Organization
Ministry of Labor and Employment
Employees’ Provident Fund Organization
Employees’ State Insurance Corporation
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