If basic pay is less then min. Wage rate of state, what should I consider?
From India, Bhilai
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8From India, Bhilai
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Minimum wages prescribed by the respective state for various categories is a gross salary that can be broken down into various heads like Basic, DA, and other allowances. The sum of all these categories shouldn't be less than the minimum wages prescribed. So, you need not be confused. The Basic could be less than the MW, in which case the balance, the shortfall should be made up by other allowances. See the model given below:
Minimum wages applicable, say for example Rs. 18,000/-, then you should have -
Basic pay: Rs. 10,000 (note that this is less than the minimum wages)
Dearness allowance: Rs. 5,000
House Rent allowance: Rs. 4,000
Conveyance: Rs. 1,000
Medical allowance: Rs. 500
Gross Salary: Rs. 20,500, which is more than the minimum wages by Rs. 2,500/-
From India, Bangalore
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Minimum wages applicable, say for example Rs. 18,000/-, then you should have -
Basic pay: Rs. 10,000 (note that this is less than the minimum wages)
Dearness allowance: Rs. 5,000
House Rent allowance: Rs. 4,000
Conveyance: Rs. 1,000
Medical allowance: Rs. 500
Gross Salary: Rs. 20,500, which is more than the minimum wages by Rs. 2,500/-
From India, Bangalore
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I do not agree .Basic should be equal to or more than Min Wages as applicable in the state. Have faced this problem . Col.Suresh Rathi
From India, Delhi
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From India, Delhi
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Dear Mr. Suresh,
Only basic pay need not be equivalent to minimum wages. Even when minimum wages are revised every half-yearly by the respective state governments, the minimum wages are inclusive of Basic wages + VDA, please.
From India, Hyderabad
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Only basic pay need not be equivalent to minimum wages. Even when minimum wages are revised every half-yearly by the respective state governments, the minimum wages are inclusive of Basic wages + VDA, please.
From India, Hyderabad
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Reducing the Basic Pay to lower the liability of PF contribution is not legal. Decreasing both Basic and DA and compensating with allowances is neither fair nor legal. Such actions may lead to repercussions from the PF department and could potentially breach condition No. 4 of the license under the Contract Labour Act issued by the Licensing Officer of the Central Government.
From India, Pune
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From India, Pune
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Ssushr If it is not legal,please send us a copy of the circular,
From India , Bangalore
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From India , Bangalore
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Dear friends,
You can only restructure allowances with the mutual consent of the majority of employees affected by this decision, but you cannot reduce Basic Pay (whereas only an increase is okay). This is the basis for PF, Gratuity, Leave Encashment, Notice period, etc. Employers thinking of making any reduction in basic pay/salary should be aware of regulations regarding this.
Read here for more details - https://www.citehr.com/104035-reduct...reduction.html. The relevant circular of EPFO is attached.
From India, Bangalore
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You can only restructure allowances with the mutual consent of the majority of employees affected by this decision, but you cannot reduce Basic Pay (whereas only an increase is okay). This is the basis for PF, Gratuity, Leave Encashment, Notice period, etc. Employers thinking of making any reduction in basic pay/salary should be aware of regulations regarding this.
Read here for more details - https://www.citehr.com/104035-reduct...reduction.html. The relevant circular of EPFO is attached.
From India, Bangalore
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Generally basic wage couldn’t be less than minimum wage. ever please. So ur basic pay plus VDA is combined as Minimumwage.
From India, Nellore
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From India, Nellore
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Some of the state governments publish a break-up of minimum wages for various categories of skilled, semi-skilled, unskilled, etc., comprised of Basic + DA/VDA. Under this arrangement, DA/VDA is revised periodically, which is binding on relevant firms/employers. This pattern is not common to all states for all categories. Some states publish a consolidated MW appropriate to different categories (if not for all categories). It's safer and appropriate if Basic + DA/VDA combined should not be less than the emoluments followed by the employer as Basic (& DA/VDA), which are to be considered as 'Wages/salaries' for the purposes of PF/Gratuity, etc. In the case of ex-servicemen reengaged in civilian duties, there are different MW published.
From India, Bangalore
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From India, Bangalore
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The following links will help you in understanding the minimum wages concept in India and comparative stats from state to state. If you wish to verify a particular state, browse the appropriate labor dept's website and download the notifications issued by the concerned from time to time. These links also provide comparative stats of MW state-wise, but they are not up to date. However, individual state's notification will provide the figures for the respective years.
- [III](http://labourbureau.nic.in/MW2k6%20Section-3.htm)
- [IndiaStat - Minimum Wages 1991-2018](https://www.indiastat.com/labour-and-workforce-data/380987/wages/292/minimum-wages-1991-2018/19325/stats.aspx)
- [Labour Bureau Report 2009](http://labourbureaunew.gov.in/UserContent/Report_MinWages_2009.pdf)
- [WIEGO Minimum Wages Publication](http://www.wiego.org/sites/default/files/publications/files/Amara_Minimum_Wages.pdf)
I think you should be looking for minimum wages for Chhattisgarh, and therefore I attach here the minimum wages applicable for the period 1.10.2018 to 31.3.2019 for your reference. Better get hold of the verbatim notification for any action required thereon.
From India, Bangalore
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- [III](http://labourbureau.nic.in/MW2k6%20Section-3.htm)
- [IndiaStat - Minimum Wages 1991-2018](https://www.indiastat.com/labour-and-workforce-data/380987/wages/292/minimum-wages-1991-2018/19325/stats.aspx)
- [Labour Bureau Report 2009](http://labourbureaunew.gov.in/UserContent/Report_MinWages_2009.pdf)
- [WIEGO Minimum Wages Publication](http://www.wiego.org/sites/default/files/publications/files/Amara_Minimum_Wages.pdf)
I think you should be looking for minimum wages for Chhattisgarh, and therefore I attach here the minimum wages applicable for the period 1.10.2018 to 31.3.2019 for your reference. Better get hold of the verbatim notification for any action required thereon.
From India, Bangalore
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Clubbing of allowances with basic pay under PF Act.pdf
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