Hi all,
Minimum Wages pertains top scheduled employment. The appropriate govt (Central/State) issues Govt. Oreder (G.O) for particular industrial activity consisting of Basic wages and modalities of calculating DA. In most states there is also a residual category which takes care of industrial activity which is not covered by industry specific GO. IT/BPO is normally classified as Shops & commercial Establishments in the absernce of any specific G.O . Acording to a Supreme Court ruling in Airfreight industries case, if the sum total of gross emoluments is more than the minimum wages, then the employees/union can not claim DA over above this amount citing the Minimum Wages G.O. Many establishments have misused this judgment to keep the Basic at very low levels, without giving DA. This is inherently risky most of the statutes like the Payment of Bonus act, The EPF & MP Act, The Payment of Gratuity Act, etc prescribe benefits based on Basic & DA. So the employees can always move the competent forum to get benefits on par with basic notwithstanding the SC ruling. Though there is no statutory guideline, the EPF Organisation follows the thumb rule that 60% of Gross salary should be reckoned for PF compliance subject to the wage ceiling which is at present Rs6500/- (Also Note that Food allownace or cash value of any fiood concession is also wages for the purpose of PF Compliance)
So it is better to adopt a sliding scale, at the lower rungs of the salary ladder keep the Basic and DA strictly on par with minimum Wages GO and as you go up the ladder the Percentage of Basic & DA can proprtionately go down as per the HR Policy in the industry cum region.
Regards
Dr. Patrick Ryan
Advocate
21 B MIG Flats
P.T Rajan Road,
K.K Nagar, Chennai 78
From India, Madras
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2Minimum Wages pertains top scheduled employment. The appropriate govt (Central/State) issues Govt. Oreder (G.O) for particular industrial activity consisting of Basic wages and modalities of calculating DA. In most states there is also a residual category which takes care of industrial activity which is not covered by industry specific GO. IT/BPO is normally classified as Shops & commercial Establishments in the absernce of any specific G.O . Acording to a Supreme Court ruling in Airfreight industries case, if the sum total of gross emoluments is more than the minimum wages, then the employees/union can not claim DA over above this amount citing the Minimum Wages G.O. Many establishments have misused this judgment to keep the Basic at very low levels, without giving DA. This is inherently risky most of the statutes like the Payment of Bonus act, The EPF & MP Act, The Payment of Gratuity Act, etc prescribe benefits based on Basic & DA. So the employees can always move the competent forum to get benefits on par with basic notwithstanding the SC ruling. Though there is no statutory guideline, the EPF Organisation follows the thumb rule that 60% of Gross salary should be reckoned for PF compliance subject to the wage ceiling which is at present Rs6500/- (Also Note that Food allownace or cash value of any fiood concession is also wages for the purpose of PF Compliance)
So it is better to adopt a sliding scale, at the lower rungs of the salary ladder keep the Basic and DA strictly on par with minimum Wages GO and as you go up the ladder the Percentage of Basic & DA can proprtionately go down as per the HR Policy in the industry cum region.
Regards
Dr. Patrick Ryan
Advocate
21 B MIG Flats
P.T Rajan Road,
K.K Nagar, Chennai 78
From India, Madras
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In india there is no law that governs the minimum basic to be paid. The minimum wages act only stipulates total amount to be paid. That too when you are paying the total amiount stipulated by the act, there is no obligation on the part of the employer to pay under various headings such as dearness allowance and other allowances.
From India, Vellore
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From India, Vellore
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(Fact Check Failed/Partial)-The user's reply is [B]incorrect[/B]. As per the latest labor laws in India, the concept of 'basic wage' is crucial as it forms the basis for various benefits and calculations. The Code on Wages, 2019, mandates that the basic wage should be at least 50% of the total remuneration. Therefore, there is a statutory ruling regarding the minimum amount of basic that needs to be paid out.
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Hi.
Minimum basic is fixed so that employees can get the benefit of PF on that minimum basic so you will have to keep the basic at minimum wages + any other benefit.i.e if the ctc is 5000 and min. wages is 3500 then the basic has to be be 3500 and rest other componenets can make that as CTC.
Praveen.
From India, Mumbai
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Minimum basic is fixed so that employees can get the benefit of PF on that minimum basic so you will have to keep the basic at minimum wages + any other benefit.i.e if the ctc is 5000 and min. wages is 3500 then the basic has to be be 3500 and rest other componenets can make that as CTC.
Praveen.
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. According to labor laws, the minimum basic should be at least equal to the minimum wage prescribed by the respective state government. This ensures statutory compliance such as EPF benefits for employees.
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Dear Ayona,
Make sure that the 'Gross amount Value' should meet the min. wages in your state. Perticularly for Skilled or Highly Skilled Category.
'Basic' would be 40% of the Monthly Gross / CTC ( As applicable).
'HRA' Can be 40% to 50% of 'Basic' depending upon the 'Non - Metros' or 'Metros' as schedulded by the Standard of Living Index.
The Balance can be distributed as Other Allowances as per the eligiblity of an employee and /or the Company policy.
with regards,
Jayesh
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Make sure that the 'Gross amount Value' should meet the min. wages in your state. Perticularly for Skilled or Highly Skilled Category.
'Basic' would be 40% of the Monthly Gross / CTC ( As applicable).
'HRA' Can be 40% to 50% of 'Basic' depending upon the 'Non - Metros' or 'Metros' as schedulded by the Standard of Living Index.
The Balance can be distributed as Other Allowances as per the eligiblity of an employee and /or the Company policy.
with regards,
Jayesh
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(Fact Check Failed/Partial)-The information provided in the user reply is inaccurate. The correct calculation should be based on the laws and standards applicable. Basic pay should adhere to minimum wage laws.
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In out company we are calculating the Basic is Gross Salary *50% for staff For labours their no BASIC, DA, HRA and all only fixed BASiC (Gross wages) only. kps
From India, Coimbatore
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From India, Coimbatore
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(Fact Check Failed/Partial)-The user reply contains incorrect information regarding the calculation of basic pay and labor wages. The statutory requirement for basic pay calculation is not based on a fixed percentage for all staff. The concept of Basic, DA, HRA, etc., is crucial. It's essential to adhere to statutory requirements.
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Dear Friend,
Minimum wages fixed by State Governments every six months. It depends on the category of employees. Category is depend on the nature of work the employee perform. Normally there are 6 category of employees:-
Unskilled
Semi skilled
Skilled
Non-matriculate
Matriculate but not graduate
Graduate and Above.
For your states minimum wages, you have to check the government notification.
It is a statutory obligation on the part of the management to pay minimum wages which is include only basic+D.A. Other allowance are not included in minimum wages. For PF, Bonus and other legal payment, basic and da is considered as minimum wages.
Thanks & Regards,
Kumaran Siva
From India, Delhi
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Minimum wages fixed by State Governments every six months. It depends on the category of employees. Category is depend on the nature of work the employee perform. Normally there are 6 category of employees:-
Unskilled
Semi skilled
Skilled
Non-matriculate
Matriculate but not graduate
Graduate and Above.
For your states minimum wages, you have to check the government notification.
It is a statutory obligation on the part of the management to pay minimum wages which is include only basic+D.A. Other allowance are not included in minimum wages. For PF, Bonus and other legal payment, basic and da is considered as minimum wages.
Thanks & Regards,
Kumaran Siva
From India, Delhi
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. Minimum wage considerations vary by state and are not limited to basic and DA only; other components like HRA may be included. Statutory obligations extend beyond basic and DA for certain benefits.
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Dear All,
Each and every person has lame excuses; minimum basic salary is set by the state government and depends upon laws.
It is variable from state to state
Thanks
Pankaj Chandan
pankaj2ykchandan@gmail.com
From India, New delhi
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Each and every person has lame excuses; minimum basic salary is set by the state government and depends upon laws.
It is variable from state to state
Thanks
Pankaj Chandan
pankaj2ykchandan@gmail.com
From India, New delhi
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(Fact Check Failed/Partial)-The information provided in the user reply is partially correct. While it is true that minimum basic salary is set by state governments, it is not based on lame excuses but on statutory regulations. The minimum basic salary varies from state to state as per state-specific Minimum Wages Act.
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Dear Indrani, What you mean by Judgement? Do you mean minimum wages notification? If so, it wiil be available from concerned Labour Office. thanks & regards, siva
From India, Delhi
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From India, Delhi
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(Fact Check Failed/Partial)-The user reply needs correction. The user should refer to the specific minimum wage notification for the region. Labour laws dictate the minimum basic wage.
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Dear All As per SC Judgment in air freight
From India, Kochi
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From India, Kochi
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(Fact Check Failed/Partial)-The user reply contains inaccurate information regarding a Supreme Court judgment on air freight. There is no relevant SC judgment mentioned in the context of the query.
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Dear All,
I am Vasu, working for a Soft. co. as HR person. Can somebody help me drawing a pyramid structure for my organization, as I am unable to draw one in word or excel. Would appreciate your quick replies on the same. Below mentioned are the no. of employees from top to bottom for your reference.
From India, Hyderabad
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I am Vasu, working for a Soft. co. as HR person. Can somebody help me drawing a pyramid structure for my organization, as I am unable to draw one in word or excel. Would appreciate your quick replies on the same. Below mentioned are the no. of employees from top to bottom for your reference.
MD
AGM - 1
S.M -1
Manager - 5
Asst. Manager - 3
Sr. Development Lead - 7
Development Lead - 11
Sr. Analyst Development - 5
Analyst Development - 10
Sr. Software Engineer - 25
Software Engineer - 9
AGM - 1
S.M -1
Manager - 5
Asst. Manager - 3
Sr. Development Lead - 7
Development Lead - 11
Sr. Analyst Development - 5
Analyst Development - 10
Sr. Software Engineer - 25
Software Engineer - 9
Thanks & Regards,
Vasu
Vasu
From India, Hyderabad
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(Fact Check Failed/Partial)-The information provided regarding drawing a pyramid structure for the organization is not relevant to the original query about CTC structure and minimum basic pay requirement.
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(Fact Checked)-The user's reply contains accurate information regarding the importance of setting Basic wages in accordance with minimum wages to avoid legal risks and ensure compliance with various labor laws. The mention of the EPF Organization's guideline and the recommendation for a sliding scale approach based on salary levels is also relevant and helpful for HR practices. (1 Acknowledge point)