Hi,
The break-up on the depand minimum wages or state government notification, recently Himachal Government revised minimum wages Rs. 3000/- per month and clearly write and instruct you can pay 95% of total salary in Basic and rest 5% you can use as HRA what to do in suituation ??????
2nd its delhi you can pay 70% in basic and rest 30% should use in HRA only.
PF department may be declare after some time you should pay the pf contribution on minimum wages then how can break-the salary ????????
Manoj
From India, Delhi
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11The break-up on the depand minimum wages or state government notification, recently Himachal Government revised minimum wages Rs. 3000/- per month and clearly write and instruct you can pay 95% of total salary in Basic and rest 5% you can use as HRA what to do in suituation ??????
2nd its delhi you can pay 70% in basic and rest 30% should use in HRA only.
PF department may be declare after some time you should pay the pf contribution on minimum wages then how can break-the salary ????????
Manoj
From India, Delhi
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Hi,
Pls guide me on this that how basic is decided for an employee? Is there any statuary policy (govt rule) for this? Is there any fixed % under govt rules?
Looking for quick response from all of you.
Thanx & Rgds,
Meenakshi
From India, Sangrur
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Pls guide me on this that how basic is decided for an employee? Is there any statuary policy (govt rule) for this? Is there any fixed % under govt rules?
Looking for quick response from all of you.
Thanx & Rgds,
Meenakshi
From India, Sangrur
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(Fact Check Failed/Partial)-The determination of basic salary for an employee is not based on a fixed percentage under government rules. It varies across industries and organizations. It's crucial to ensure compliance with the Minimum Wages Act and other relevant labor laws.
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Hi Ayona
I could not open the attachement.
However it is immaterial to the reply at present.
1. There is no law giving guideline for Basic salaries or DA.
2. The only law prescribing Basic and DA is Minimum Wagwes Act
3. According to this Establishments shall pay minimum wages as notified .
4. State Govts shall notify for different industries and differents trades/jobs.
5. As per Supreme Court verdict, Only Basic and DA paid by you shall be taken into consideration to verify whether the estavblishment is paying minimum wages or not.
6. IF you are paying 5000 rupees to an assistant then your Basic and DA puttogether shall be equivalent or more than the minimum prescribed. BPOs call centres fall under shops and establishments and you can look at this category.
7 You can pay more
8. There is no law which says that you got to pay pay DA separately. As long as you make adjustments every year in tune with minimum wages,( Basic plus DA) there is no need to pay DA separately
9. My advice would be fix basic and da as prescribed by Minimum Wages to avoid confusion from Labour authirities and revise every year. You can even round off to a higher figure
10 Then payt other allowances.
11. There is no percentage specified by l,aw for this purpose
12 for example, if you are paying wages of 10000 rupees for an assistant, hen you may have to pay approximatley Rs 4000 as Basic plus DA together Blance 60% can be paid as allowances
13. Having said this, we generally recommend50% of the total CTC towards Basic plus DA at lower levels. At higher levels it couild go down to 20% to 30%
Siva
From India, Chennai
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I could not open the attachement.
However it is immaterial to the reply at present.
1. There is no law giving guideline for Basic salaries or DA.
2. The only law prescribing Basic and DA is Minimum Wagwes Act
3. According to this Establishments shall pay minimum wages as notified .
4. State Govts shall notify for different industries and differents trades/jobs.
5. As per Supreme Court verdict, Only Basic and DA paid by you shall be taken into consideration to verify whether the estavblishment is paying minimum wages or not.
6. IF you are paying 5000 rupees to an assistant then your Basic and DA puttogether shall be equivalent or more than the minimum prescribed. BPOs call centres fall under shops and establishments and you can look at this category.
7 You can pay more
8. There is no law which says that you got to pay pay DA separately. As long as you make adjustments every year in tune with minimum wages,( Basic plus DA) there is no need to pay DA separately
9. My advice would be fix basic and da as prescribed by Minimum Wages to avoid confusion from Labour authirities and revise every year. You can even round off to a higher figure
10 Then payt other allowances.
11. There is no percentage specified by l,aw for this purpose
12 for example, if you are paying wages of 10000 rupees for an assistant, hen you may have to pay approximatley Rs 4000 as Basic plus DA together Blance 60% can be paid as allowances
13. Having said this, we generally recommend50% of the total CTC towards Basic plus DA at lower levels. At higher levels it couild go down to 20% to 30%
Siva
From India, Chennai
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. The Minimum Wages Act does prescribe guidelines for basic and DA. It is essential to consider the basic and DA components for compliance with minimum wage regulations.
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Shops and Establishment Act, Factories Act are two laws which cover most of the companies/ shops/ factories etc. where manpower is employed. When the total staff exceeds 20, almost all labour laws are applicable. So Minimum Wages Act cannot be neglected when deciding the salary structure.
Minimum wages is reviewed once every 6 months by the Labour commissioner Dept. If license for commencing your establishment was issued by Central Govt. agencies, you will be covered under Central Labour Commissioner office, else, State Labour Commissioner. You can get a copy from the respective office.
Minimum wages comprise Basic + Sp.Allowance for 26 days.
Many companies keep Basic and Sp.Allowance very minimal to keep EPF, ESIC expenses for the company low. This is illegal. The Muster is fabricated to authenticate this. Eg. not showing an employee worked for 26 days. They show 10 or 9 days per month.
You may note that EPF or ESIC authorities are not bothered about the Minimum Wages. They only see whether you have paid contribution for the amount in Salary Register. Imagine a situation when your staff file case against your company alleging exploitation. So keep the Basic + Salary more than the Minimum Wages.
Thanks.
Siva
From India, Mumbai
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Minimum wages is reviewed once every 6 months by the Labour commissioner Dept. If license for commencing your establishment was issued by Central Govt. agencies, you will be covered under Central Labour Commissioner office, else, State Labour Commissioner. You can get a copy from the respective office.
Minimum wages comprise Basic + Sp.Allowance for 26 days.
Many companies keep Basic and Sp.Allowance very minimal to keep EPF, ESIC expenses for the company low. This is illegal. The Muster is fabricated to authenticate this. Eg. not showing an employee worked for 26 days. They show 10 or 9 days per month.
You may note that EPF or ESIC authorities are not bothered about the Minimum Wages. They only see whether you have paid contribution for the amount in Salary Register. Imagine a situation when your staff file case against your company alleging exploitation. So keep the Basic + Salary more than the Minimum Wages.
Thanks.
Siva
From India, Mumbai
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Hi Ayona,
As per the minimum wages act minimum wages for WB is Rs 3764, which comprises of basic+DA. Howeveer, it is not mandatory to have DA in your salary structure.
However, it is advisable to keep 40% of CTC as the basic salary for non-metro and 50% For Metros.
Regards
From India, Mumbai
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As per the minimum wages act minimum wages for WB is Rs 3764, which comprises of basic+DA. Howeveer, it is not mandatory to have DA in your salary structure.
However, it is advisable to keep 40% of CTC as the basic salary for non-metro and 50% For Metros.
Regards
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is partially correct but lacks complete information based on the latest laws and regulations. [response]
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Thanks a lot Sivasankaran. I still have some doubts I would just jot them down:1) We are an BPO and a software development company, you have already mentioned that BPO would fall under the Shops and Establishment Act. Then what bt the software division? 2) we do not have DA, we only have the basic, so this means that the basic should always be the amount equivalent to the min. Wages as specified.....right?3) We operate in Kolkata, so could you please provide me with the information about where to get the revised min wages form? I downloaded that from this very cite, but thats very confusing.IF would be good if you could clear my doubts.Thanks and Regards,AYona
From India, Delhi
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From India, Delhi
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies: 1) The software division typically falls under the Factories Act, not the Shops and Establishment Act. 2) The basic wage should meet the minimum wage requirements as per the applicable Minimum Wages Act. 3) For revised minimum wage information in Kolkata, check the West Bengal Labour Department website or contact the relevant authorities.
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Hello Dear, I think minimum basic should be 60% of Grose If Grose is 10,000/- Basic 6,000/- HRA 2,000/- Other All. 1,000/-
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The minimum basic should be 50-60% of the Gross, not necessarily 60%. The breakup provided aligns with best practices. Ensure compliance with local laws. (1 Acknowledge point)
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Dear all, please tell me what w’ll be the minimum wages for delhi employees if it is institute. and if anyones salary is Rs 5000,what will be his/her basic and what will come in other.
From India, New Delhi
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From India, New Delhi
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(Fact Check Failed/Partial)-The minimum wages for Delhi employees in an institute must align with the Delhi government's Minimum Wages Act, which specifies different rates based on skill category. For a salary of Rs 5000, the basic should be at least 50-60% of the total salary. Other components like HRA, allowances should also be structured accordingly.
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Hi Ayona,
I think it's not CTC. Its gross salary. CTC is different from Gross salary. CTC carries all the expenses paid by the company to its employee (i.e., Company PF & ESI contribution). Basic + DA should be 50%, if we don't show DA then basic alone should be 50% from Gross.
Thanks
Guru Prasad K.
From India, Madras
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I think it's not CTC. Its gross salary. CTC is different from Gross salary. CTC carries all the expenses paid by the company to its employee (i.e., Company PF & ESI contribution). Basic + DA should be 50%, if we don't show DA then basic alone should be 50% from Gross.
Thanks
Guru Prasad K.
From India, Madras
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(Fact Check Failed/Partial)-[response] CTC includes all expenses borne by the company for an employee, like PF and ESI. Basic + DA should be 50% of the gross salary, or Basic alone should be 50% if DA isn't shown.
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Dear Guru Prasad,
If Gross & Net Salary is same , Example if salary is 5000( same gross & Net ), presently there is no deductions then please can you tell me what will be the basic pay and other division like what will be HRA,Special allowance etc.
From India, New Delhi
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If Gross & Net Salary is same , Example if salary is 5000( same gross & Net ), presently there is no deductions then please can you tell me what will be the basic pay and other division like what will be HRA,Special allowance etc.
From India, New Delhi
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. The Gross and Net Salary being the same doesn't imply no deductions. Basic pay should be a significant part of CTC. It's advisable to follow legal guidelines for minimum Basic pay.
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Minimum wage laws vary by state, not by specific percentages for Basic and HRA. The information on Himachal Pradesh and Delhi is incorrect.