if minimum wages increased can we reduce take home or not
From India, undefined
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1From India, undefined
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Dear Friend,
Minimum wages are revised yearly twice, so it means you reduce employees' take-home salary. This is not a good practice to reduce take-home pay. Minimum wages are revised according to the cost of living, so accordingly, we need to pay the revised salary without affecting their take-home salaries.
From India, Mumbai
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Minimum wages are revised yearly twice, so it means you reduce employees' take-home salary. This is not a good practice to reduce take-home pay. Minimum wages are revised according to the cost of living, so accordingly, we need to pay the revised salary without affecting their take-home salaries.
From India, Mumbai
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The poster should have explained how he intends to reduce the take-home pay with a corresponding increase in the minimum wages. Normally, any increase in the minimum wages would result in a corresponding increase in the gross wages minus the proportional increase in the employee's contributions to statutory funds like the EPF and the ESI. Therefore, no possibility of reduction in the take-home pay.
From India, Salem
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From India, Salem
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Dear Annony,
As per the law, you are supposed to pay the Minimum Wages (as defined by the appropriate government) and comply with the applicable acts. As per my knowledge, there is no law for "Take Home" or "CTC." Yes, in an extreme scenario, the Take Home salary can be reduced despite an increase in Minimum Wages, but that will fall under "Unfair Labour Practice."
Dear Umakanth sir, this is possible in case the employer is paying some allowance over and above the MW. If the employer shifts the increased amount from the allowance into Basic Wages (with no hike in gross wages). In such a case, PF will be deducted on higher Basic, and take-home salary will be decreased. This case should be prior to the Hon'ble SC Judgement (PF deduction of allowances as well).
Hope I am clear to all. Seniors can throw more light on the matter.
From India, Delhi
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As per the law, you are supposed to pay the Minimum Wages (as defined by the appropriate government) and comply with the applicable acts. As per my knowledge, there is no law for "Take Home" or "CTC." Yes, in an extreme scenario, the Take Home salary can be reduced despite an increase in Minimum Wages, but that will fall under "Unfair Labour Practice."
Dear Umakanth sir, this is possible in case the employer is paying some allowance over and above the MW. If the employer shifts the increased amount from the allowance into Basic Wages (with no hike in gross wages). In such a case, PF will be deducted on higher Basic, and take-home salary will be decreased. This case should be prior to the Hon'ble SC Judgement (PF deduction of allowances as well).
Hope I am clear to all. Seniors can throw more light on the matter.
From India, Delhi
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Dear Poster,
Please be informed that the intake salary cannot be reduced in a revision. It is wrong on both ethical and legal terms.
Also, the government increases the minimum wage with an intention to increase take-home salary only.
From India, Delhi
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Please be informed that the intake salary cannot be reduced in a revision. It is wrong on both ethical and legal terms.
Also, the government increases the minimum wage with an intention to increase take-home salary only.
From India, Delhi
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Here we go, the best example if the minimum wages increased:
Mr. A has a basic salary of $10,400, a per day salary of $400, and other cash allowance of $4,000. The total gross is $14,400. After the minimum wage increase, Mr. A's per day salary is $430, and you are required to pay a basic salary of $11,180. In this case, you can adjust the amount with the other cash allowance. Calculate as follows: $11,180 - $10,400 = $780. Reduce this amount ($780) from the other cash allowance: $4,000 - $780 = $3,220.
In the end, Mr. A's per day wage is $430, basic salary is $11,180, and other cash allowance is $3,220. The overall gross remains at $14,400. Therefore, there is no need to reduce the take-home salary after the minimum wage increase. Hope this clarifies.
From India, Bhopal
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Mr. A has a basic salary of $10,400, a per day salary of $400, and other cash allowance of $4,000. The total gross is $14,400. After the minimum wage increase, Mr. A's per day salary is $430, and you are required to pay a basic salary of $11,180. In this case, you can adjust the amount with the other cash allowance. Calculate as follows: $11,180 - $10,400 = $780. Reduce this amount ($780) from the other cash allowance: $4,000 - $780 = $3,220.
In the end, Mr. A's per day wage is $430, basic salary is $11,180, and other cash allowance is $3,220. The overall gross remains at $14,400. Therefore, there is no need to reduce the take-home salary after the minimum wage increase. Hope this clarifies.
From India, Bhopal
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Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls