| As far as enforcement of minimum wages is concerned, an employer is said to follow minimum wages if the total of (gross of) wages paid is not less than the minimum wages. Usually, it is composed of a basic wage and a Dearness allowance. But if the employer has a different structure and the total of wages under all the heads taken together is equal to or more than minimum wages, he can do so.
However, if the basic wages is low and the other part of salary, ie, HRA and Conveyance, are high then there will be an apprehension that there is an attempt on the part of employer to reduce his burden of Provident Fund contribution since it is from Basic salary alone that PF is deducted. Though Provident Fund Organisation is not empowered to enforce minimum wages, there is every chance of such linkage in a very short time.
Regards,
Madhu.T.K | 
