1. Can Basic wage be less than the minimum wage of the state? 2. Monthly wage is calculated by Minimum wage Multiply by 30 or 26 days
From India, Shillong
From India, Shillong
1. Yes, but Basic wages can be less but to divided in multiple Head in Salary Structure. 2.Minimum wage multiply 26 day as per Minimum Wages Act
From India, Mumbai
3From India, Mumbai
In the case of employees whose minimum wages have been notified by the company, the gross wages should not be less than the sum total of the basic wages and dearness allowances as per that notification. If, for example, the basic wage is Rs 7000 and the Variable Dearness Allowance is Rs 3000, then the total wages is Rs 10000. You can decide your own basic pay, even without an element called dearness allowance but the total o basic and such other allowances should not be less than Rs 10000.
Under such circumstances, you have to consider the above gross salary,ie, Rs 10000, for calculating his bonus, retrenchment compensation, gratuity, leave encahment or payment of contribution to Provident Fund.
Normally the notification will tell you how to treat the daily wages for monthly payment.It can be either by multiplying the daily wages by 26 or 30. Normally the monthly wages will be given. This is divided by 26 to arrive at daily rate. This is done to accommodate payment for weekly off day.
From India, Kannur
Under such circumstances, you have to consider the above gross salary,ie, Rs 10000, for calculating his bonus, retrenchment compensation, gratuity, leave encahment or payment of contribution to Provident Fund.
Normally the notification will tell you how to treat the daily wages for monthly payment.It can be either by multiplying the daily wages by 26 or 30. Normally the monthly wages will be given. This is divided by 26 to arrive at daily rate. This is done to accommodate payment for weekly off day.
From India, Kannur
No basic wages can not be less than the minimum wages of state as per emp grade Monthly wages is calculated by 30 or 31 as per days in months and over time amt is calculated by 26 Reg Saurabh
From India, Delhi
From India, Delhi
Dear colleague,
1 Minimum wages under the Act consists of two components - Basic wage and Special Allowance!{ DA}
2. You cannot pay lesser than the prescribed wages. If you do. you are liable for penal action.
3. The Act/Rules provide for computing daily rate by dividing monthly rate by 26 days.
It is not based on number of days in the month.
Regards,
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
1 Minimum wages under the Act consists of two components - Basic wage and Special Allowance!{ DA}
2. You cannot pay lesser than the prescribed wages. If you do. you are liable for penal action.
3. The Act/Rules provide for computing daily rate by dividing monthly rate by 26 days.
It is not based on number of days in the month.
Regards,
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
Minimum wages have been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”
Therefore ever state and central govt issues notifications in respect of minimum wages to employees in various employment categories based on listed type of business in notifications along with periodic Revisions in Dearness/ special allowances. In any case therefore the minimum wage cannot be reduced to less than specified through notifications as Minimum wages.
The calculation of such wages is done on total no of work days excluding the weekly off days.
From India, Vadodara
Therefore ever state and central govt issues notifications in respect of minimum wages to employees in various employment categories based on listed type of business in notifications along with periodic Revisions in Dearness/ special allowances. In any case therefore the minimum wage cannot be reduced to less than specified through notifications as Minimum wages.
The calculation of such wages is done on total no of work days excluding the weekly off days.
From India, Vadodara
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Revision in Basic wage wef Mar 2014 Gazette.pdf