Respected Seniors,
I am working in a Engineering organisation in Gujarat. Presently in Gujarat Min. Wages rate has increased tremendously.
My question is that can we split Min wages in to two or three component like
Basic + HRA + CONV so that the net take home salary can be increased. Beacuse all workers who work on a min. wages more concentrate on take home salary than what they are saving from PF, Graduity, Bonus etc.
Please answer me asap so that I can define the structure properly.
Regards,
Aliabbas Saiyed
From India, Hyderabad
12I am working in a Engineering organisation in Gujarat. Presently in Gujarat Min. Wages rate has increased tremendously.
My question is that can we split Min wages in to two or three component like
Basic + HRA + CONV so that the net take home salary can be increased. Beacuse all workers who work on a min. wages more concentrate on take home salary than what they are saving from PF, Graduity, Bonus etc.
Please answer me asap so that I can define the structure properly.
Regards,
Aliabbas Saiyed
From India, Hyderabad
Hi Saiyaed,
I'm just a new member. I can tell you- Min. Wages comprise of two elements namely- Basic & Dearness Allowances. You can not split the Min Wages as per your choice of Basic+D.A.+Conveyances. Only you can do one thing you can increase the Min. Wages a slight higher and then you can put Basic wages of your choice (but can go for any lowest minimal rate from which it can be assumed / proved that you want to escape from your liability towards PF, esi etc). You can the divide the rest part ot total salary (i.e. Gross Salary- Basic Salary/wage) into different allowances part. In that way you can provide more take home to your employees a well as can minimise the liability towards P.F. & Esi. But, remember, if sombody's pf deduction is already made as per Min. Wages Slab, you can not decrease that.
regards
koustav
I'm just a new member. I can tell you- Min. Wages comprise of two elements namely- Basic & Dearness Allowances. You can not split the Min Wages as per your choice of Basic+D.A.+Conveyances. Only you can do one thing you can increase the Min. Wages a slight higher and then you can put Basic wages of your choice (but can go for any lowest minimal rate from which it can be assumed / proved that you want to escape from your liability towards PF, esi etc). You can the divide the rest part ot total salary (i.e. Gross Salary- Basic Salary/wage) into different allowances part. In that way you can provide more take home to your employees a well as can minimise the liability towards P.F. & Esi. But, remember, if sombody's pf deduction is already made as per Min. Wages Slab, you can not decrease that.
regards
koustav
Minimum wages can be split into 2 components only. one of my contractors failed a social compliance audit because of the same.
Group 4 securicor had a case running in karnataka high court etc.
let me know if you need further info.
surya
From India, Delhi
Group 4 securicor had a case running in karnataka high court etc.
let me know if you need further info.
surya
From India, Delhi
Thank you Koustav and Surya for your promp reply.
I have already deducted PF on minimum wages. So it will not be possible to decrease the minimum wages now. Thanks once again.
Please keep on posting.
Aliabbas
From India, Hyderabad
I have already deducted PF on minimum wages. So it will not be possible to decrease the minimum wages now. Thanks once again.
Please keep on posting.
Aliabbas
From India, Hyderabad
Hi, I am piyush from Baroda and associated with labour law filed from 25 years as per the supreme court judgemet in the in the matter of Airfright corporation if your total wages are more than minimum wages than you can split the minimum wages.
Dear All, Please provide me a ideal salary break up for the current minimum wage of delhi Rs 3470/- . Regards Tribikram
From India, Delhi
From India, Delhi
Hi group! Can any of you tell me wot is the minimum wages amount.. for Maharahtra, currently? Thnks n regds, Garima
Dear Saiyed,
If you see the definition of 'wages' under minimum wages act, it includes all remunneration capable of being expressed in terms of money and incldes HRA.
Also please refer to the case Airfright Ltd v. State of Karnataka & Others, , 1999 LLR 1008 (SC) wherein it is held that:
i) an employer paying highre than minimum rates of wages is NOT REQUIRED TO PAY variable dearness allowance separately; and
ii) An establishment will be excluded from the applicability of Minimum wages act when the wages are moe than the prescribed rates.
keeping the above in mind you can fix the componenets of wages.
Regards,
Surendranath
From India, Madras
If you see the definition of 'wages' under minimum wages act, it includes all remunneration capable of being expressed in terms of money and incldes HRA.
Also please refer to the case Airfright Ltd v. State of Karnataka & Others, , 1999 LLR 1008 (SC) wherein it is held that:
i) an employer paying highre than minimum rates of wages is NOT REQUIRED TO PAY variable dearness allowance separately; and
ii) An establishment will be excluded from the applicability of Minimum wages act when the wages are moe than the prescribed rates.
keeping the above in mind you can fix the componenets of wages.
Regards,
Surendranath
From India, Madras
Hello Piyush, So you mean to say, that if min wage is Rs. 3470/-. it can be split as: Basic - 1735/- HRA - 867.5/- Conv - 800/- Sp. Allow - 67.5/- Kindly confirm the same. Regards, Sashmita
From India, Delhi
From India, Delhi
Hi,
I am continuing to this topic. Min. wages cannot be splited. There are 2 components of Min. wages i.e. Basic and Dearness Allowance (DA) for three classes of labour namely:
unskilled
semi-skilled
skilled
The state government as per the consumer index number and various other measures, increases the DA in every six months which are enforced from 1. April 1st of every year and 2. October 1st of every year.
In earlier times, Govt. used to only mentioned the increase in DA and that DA was supposed to be added in DA of each employee's pay. But now, Govt. has also fixed a minimum basic for each class, below which you can't fix the basic wage and the DA, which is given after every six months. Government took this measure because it merged DA in 2005.
For your information, i have enclosed GO of Delhi Govt. for the minimum wages in Delhi for the current period.
I hope this will be helpful.
Please keep one thing in mind, labour laws work only on a forward direction. which means, you can reduce the basic wages, or reduce the contribution in the form of PF and ESIC. One more thing, once you reduce the basic, the contribution of PF and ESIC from both the ends will also decrease, which means the co. is defaulting not only in the min. wages, but also in payment of wages, PF act, ESIC act. etc.
any replies are welcome.
Umesh
(umesh.chaudhary@ril.com)
From India, Delhi
I am continuing to this topic. Min. wages cannot be splited. There are 2 components of Min. wages i.e. Basic and Dearness Allowance (DA) for three classes of labour namely:
unskilled
semi-skilled
skilled
The state government as per the consumer index number and various other measures, increases the DA in every six months which are enforced from 1. April 1st of every year and 2. October 1st of every year.
In earlier times, Govt. used to only mentioned the increase in DA and that DA was supposed to be added in DA of each employee's pay. But now, Govt. has also fixed a minimum basic for each class, below which you can't fix the basic wage and the DA, which is given after every six months. Government took this measure because it merged DA in 2005.
For your information, i have enclosed GO of Delhi Govt. for the minimum wages in Delhi for the current period.
I hope this will be helpful.
Please keep one thing in mind, labour laws work only on a forward direction. which means, you can reduce the basic wages, or reduce the contribution in the form of PF and ESIC. One more thing, once you reduce the basic, the contribution of PF and ESIC from both the ends will also decrease, which means the co. is defaulting not only in the min. wages, but also in payment of wages, PF act, ESIC act. etc.
any replies are welcome.
Umesh
(umesh.chaudhary@ril.com)
From India, Delhi
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