kiranikumari
Dear Seniors,
I have recruited few employees on company roles. Now as per our company policy and structure we have alloted them grades and freezed their basic, HRA & Convey & other allowances.
The query:- Is that necessary that the basic alloted to them should be not less than minimum wages if I have taken them on company roles or as trainees.
2. Is that sufficient the total gross salary is not less than minimum wages X 26 days.
Please clarify in this regard either of the condition has to be satisfied or none.
Regards,
Kiranikumari

From India, Bangalore
sunil Sadar
15

First of all be clear in mind whether these employees fall under the defination of worker under Min.wages Act. i.e whether they are engaged for manual, unskillled, skilled, clerical nature of work. If at all they fall, then while you decide on their pay grades, you will have ensure that their gross monthly ( wages for 26 days) are not less than min. rates of wages fixed by govt. for the scheduled industry under min. wages act. Also check whether your industry is a scheduled industry under M.W.Act 1948.
If they are not falling under min. wages act, then you can have your own structure and nothing do with min.wages.

From India, Nagpur
kichan
Kiranikumari,
If the gross salary an employer pays to the employee do not fall below 'Minimum Wages' notified by the Government from time to time, there is no violation of Minimum Wages Act. There is a Supreme Court decision to this effect.
Best regards,
Jaikrishnan
Company Secretary
Thiruvananthapuram

From India
kichan
Kiranikumari,
If the gross salary an employer pays to the employee do not fall below 'Minimum Wages' notified by the Government from time to time, there is no violation of Minimum Wages Act. There is a Supreme Court decision to this effect.
Best regards,
Jaikrishnan
Company Secretary
Thiruvananthapuram

From India
yadavneeraj79
2

Dear All,
As per above discussion and concern put by kiranakumari about to fixing wages according the company structure.
This is okay with higher salary employees but we have to maintain basic according to their category.
we can say that gross salary is equal or higher than minimum wage. Because there is already a decision regarding the same by the high court HARYANA & PUNJAB as a organization can not bifurcate minimum wages in to other heads.
Because all benefits are calculated on basic only like as EPF and Bouns,Gratuty etc.

From India, New Delhi
Pravez.D.Ahmad
Dear All, Gross Salary/wages should not be less than minimum wages*26 days. Minimum wages applicable if business comes under scheduled declared by central or state governements. rgds
From United States
sivan421
Dear all, what mr.neeraj yadav told sounds right. if you are bifurcating the gross salary and tthe ebasic falls below minimum wage sall your contrbution mainly that of pf which will be below what you are supposed to pay by minimum wage.thus noncompliance exist in the case.. for eg say the minimum wage is 6000, the employer's pf contribution is720 rupees. when you have a gross pay of 7000bifurcated4000basic and 3000allowence thr employer's pf contribution is 480 only.so you are not meeting the standards . but the emplyees with higher salary this is not the case as mr.neeraj told
From India, Madras
Alpesh Thakkar
Dear All,
Pl. Go through the following, you will ge the answer of all your questions.
PF CONTRIBUTIONS NOT ATTRACTED ON ALLOWANCES EVEN WHEN PART OF MINIMUM WAGES : P&H - HIGH COURT
In a writ petition No.15443/2009 between APFC vs. G4 Security, the Punjab & Haryana High Court has held on 1st February, 2011 that the minimum wages can be bifurcated into allowances and the Provident Funds contributions will not be attracted on allowances. The judgment will be published in the next issue of the Labour Law Reporter.
so, you can bifurcate the min wages in to Basic and different allownaces and can deduct PF on that Basic, but still I have a confusion for the calculation of Bonus.
Regards,
ALPESH THAKKAR
Asst. Manager -HR
Advanced Systek Pvt. Ltd.

From India, Ahmadabad
Chalke
Dear all,
We are looking at the following for our Mumbai location :
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From India, Mumbai
outlook
4

HI what if the basic salary of salary break is less than minimum wages as per govt? As per above discussion only gross salary is taken in to consideration for min wage. Thanks
From India, Delhi
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