Can we split minimum wage into other allowance including basic and vda?
From India, Mumbai
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1From India, Mumbai
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Minimum wage cannot be divided into any form, sir. Usually, Basic pay is a minimum wage. Every 6 months, Variable Dearness Allowance (V.D.A.) is added to Basic Pay in Government Orders circulated by the State Government for all private employees.
Suppose you want to pay minimum wage to a clerk Rs. 15,000 per month as per existing labor laws. Take Rs. 15,000 as Basic Pay and add anything more to it. But never break Rs. 15,000 to Rs. 10,000 and Rs. 5,000 like this. Basic Pay Rs. 10,000 + V.D.A. Rs. 5,000 equals Rs. 15,000. Why? Because you have no right to break the minimum wage fixed for a certain employee as Basic Pay by the State Labour Department. You should realize that Basic Pay is fixed by the government as a minimum wage. One has no right to divide or break up the Basic Pay into different names like HRA, TTA, etc.
I always wonder why I find in many small and great reputed firms the desire to take away the workers' monetary benefits, whether they are working or leaving by resigning, or on ill health medical leave, those who are innocent of labor laws.
From India, Nellore
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Suppose you want to pay minimum wage to a clerk Rs. 15,000 per month as per existing labor laws. Take Rs. 15,000 as Basic Pay and add anything more to it. But never break Rs. 15,000 to Rs. 10,000 and Rs. 5,000 like this. Basic Pay Rs. 10,000 + V.D.A. Rs. 5,000 equals Rs. 15,000. Why? Because you have no right to break the minimum wage fixed for a certain employee as Basic Pay by the State Labour Department. You should realize that Basic Pay is fixed by the government as a minimum wage. One has no right to divide or break up the Basic Pay into different names like HRA, TTA, etc.
I always wonder why I find in many small and great reputed firms the desire to take away the workers' monetary benefits, whether they are working or leaving by resigning, or on ill health medical leave, those who are innocent of labor laws.
From India, Nellore
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Dear Gannahope our state minimum wages is 222 per day and 27 per day is VDA pls tell me will i have to provide minimum 249 per day 22 plus 27 Pls revert....
From India, Gurgaon
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From India, Gurgaon
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Dear Mr. Bhawani Singh Tanwar,
The State Government is empowered to fix the minimum wages for scheduled employments under Section 3 of the Minimum Wages Act. The house rent component, without any cap, is treated as wage as defined in Section 2(h) of the Minimum Wages Act. Certain State Governments have further restricted the percentage of HRA in minimum wages.
Accordingly, you can split your minimum wages into BASIC and HRA in consultation with the applicable norms of your State.
P.K. Sharma
From India, Delhi
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The State Government is empowered to fix the minimum wages for scheduled employments under Section 3 of the Minimum Wages Act. The house rent component, without any cap, is treated as wage as defined in Section 2(h) of the Minimum Wages Act. Certain State Governments have further restricted the percentage of HRA in minimum wages.
Accordingly, you can split your minimum wages into BASIC and HRA in consultation with the applicable norms of your State.
P.K. Sharma
From India, Delhi
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Minimum wages mean Basic + VDA/Special allowances as revised by the appropriate government (central or state). It shall be split by any means.
Further, for any company deciding the salary structure of its employees, ensure that their basic salary is not less than the minimum wages (basic+VDA/special allowance) applicable to that industry's scheduled employment as per the MW Act.
Moreover, for the purpose of PF contribution, please refer to EPFO Circular No. Coord/4(6)2003/Clarification/Vol II/7394 dated 23 May 2011. Copy attached.
From India, Mumbai
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Further, for any company deciding the salary structure of its employees, ensure that their basic salary is not less than the minimum wages (basic+VDA/special allowance) applicable to that industry's scheduled employment as per the MW Act.
Moreover, for the purpose of PF contribution, please refer to EPFO Circular No. Coord/4(6)2003/Clarification/Vol II/7394 dated 23 May 2011. Copy attached.
From India, Mumbai
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The circular has been withdraw by PF office. It was withdrawn after court passed strictures against the department.
From India, Mumbai
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From India, Mumbai
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Dear All, Can anybody provide me himachal pradesh minimum wages notification where is mentioned that we can keep 5% minimum wages in HRA part and 95% into the basic part . Warm Regards, Gaurav Mehta.
From India
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From India
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