POOMPUHAR SHIPPING CORPORATION LTD. Vs. THE REGIONAL PROVIDENT FUND COMMISSIONER BHAVISHYANIDHI BHAVAN

JUDGEMENT

(1.) The benefit extended to workmen in the appellant/Corporation in the form of incentive payment for extra performance during regular working hours is sought to be included as part of basic wage in terms of the impugned order giving rise to the present appeal.

(2.) The factual position is really not in dispute. The Appellant Corporation is engaged in the business of transportation of coal by sea and unloading the coal in Tuticorin for the Tamil Nadu Electricity Board to generate power for supply of electricity. The appointment orders show that the initial appointment as trainees for a period of two months is on stipendiary basis and after confirmation, they are appointed in the appropriate scale of pay with dearness allowance admissible under the Rules of the Appellant Corporation. In addition to these emoluments, the workmen are eligible for monthly incentive payments on the basis of the appellant's scheme of incentive payments in force at the time. This incentive payment is to be on the basis of the output from the cranes during each shift. For clarity, this incentive is payable not for any extra hours work, but in the regular working time period. Thus, the incentive would vary from workman to workman dependent on the output being more than the benchmark for such incentive payment. The incentive would thus be payable to some and not to the others and even to the ones to whom it is payable, it would be dependent on the work done.

(3.) We are concerned with the effect of this incentive payment in the context of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter to be referred to as "the said Act"). Sec. 6 of the said Act provides for contributions to be paid by the employer to the fund under the provisions of the Provident Fund Scheme and has to be calculated as percentage of the basic wages.