Is it possible that the basic salary is less than minimum wages?
From India, Delhi
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3From India, Delhi
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What sort of question is it? Please clarify. Wages generally mean something you pay to the workers. Whose basics are you talking about?
Your question is slightly confusing.
Regards,
From United Arab Emirates, Dubai
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Your question is slightly confusing.
Regards,
From United Arab Emirates, Dubai
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Hi, I would like to share with you the attached file, which will help you little. I have got it from this site only few days back. Please go thru, Thanks, Dinesh
From India, Pune
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From India, Pune
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Is it mean total of Basic Salary & DA should be equal to the Minimum Wages? And Employer must pay EPF for employee on Minimum Wages.
From India, Delhi
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From India, Delhi
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The recent judgment on Airfreight states that for the definition of wages, it should refer to Section 2 (h).
As per the Minimum Wages Act 1942, wages are defined as follows under Section 2 (h):
"wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance, but does not include:
- the value of any house accommodation, supply of light, water, medical attendance, or any other amenity or any service excluded by general or special order of the appropriate Government;
- any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
- any traveling allowance or the value of any traveling concession;
- any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
- any gratuity payable on discharge.
This means that HRA will very well form a part of wages as per the Minimum Wages Act.
Please comment.
From India, Pune
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As per the Minimum Wages Act 1942, wages are defined as follows under Section 2 (h):
"wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance, but does not include:
- the value of any house accommodation, supply of light, water, medical attendance, or any other amenity or any service excluded by general or special order of the appropriate Government;
- any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
- any traveling allowance or the value of any traveling concession;
- any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
- any gratuity payable on discharge.
This means that HRA will very well form a part of wages as per the Minimum Wages Act.
Please comment.
From India, Pune
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Hope all of you will help me. Below is the scenario I have posted the same long back, but no one helped me.
We are using around 700 contractual workers for our manufacturing process every month. Before May 2009, everyone is getting paid the same rate. But from May 09 onwards, we separate them into skilled and unskilled categories and also revised their wages, allowances, and added some schemes to attract them.
Now, after the revision in D.A. Aug 09, below is the structure:
Unskilled worker - Gross 4206.75, Daily wages 161.80
Skilled worker - Gross 5106, Daily wages 196.41
Both have Basic 1200.00 and DA 1106.75.
Now, the problem is that when we pay overtime on =(basic + DA)/26/8*2, both will receive 22.18 Rs for one hour.
1. If an unskilled worker does overtime for 8 hours, he will get 8*22.18 = 177.44, which is higher than his daily wage of 161.80. He will get 15.64 Rs extra. In a month, this category is having more than 3000 hours of overtime.
2. If a skilled worker does overtime for 8 hours, he will get 8*22.18 = 177.44, which is less than his daily wage of 196.41. He will get 18.77 Rs less. In a month, this category is having more than 3000 hours of overtime.
Now the problem is that I want to adjust basic, DA, and other allowances so that he will get paid for overtime as per his gross salary.
My questions are:
1. Can I make basic less than DA? If yes, what is the legal point (DA will increase after a certain period)?
2. Should I combine basic and DA amounts?
3. Can I pay overtime on gross (but it will be one time only)?
4. Or is there any way out?
I hope you understand my problem; if you need more information, please reply. I want to give this to our management within two days. I tried to put as much as possible; please help me out.
Best Regards,
Sachin Gaikwad
From India, Mumbai
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We are using around 700 contractual workers for our manufacturing process every month. Before May 2009, everyone is getting paid the same rate. But from May 09 onwards, we separate them into skilled and unskilled categories and also revised their wages, allowances, and added some schemes to attract them.
Now, after the revision in D.A. Aug 09, below is the structure:
Unskilled worker - Gross 4206.75, Daily wages 161.80
Skilled worker - Gross 5106, Daily wages 196.41
Both have Basic 1200.00 and DA 1106.75.
Now, the problem is that when we pay overtime on =(basic + DA)/26/8*2, both will receive 22.18 Rs for one hour.
1. If an unskilled worker does overtime for 8 hours, he will get 8*22.18 = 177.44, which is higher than his daily wage of 161.80. He will get 15.64 Rs extra. In a month, this category is having more than 3000 hours of overtime.
2. If a skilled worker does overtime for 8 hours, he will get 8*22.18 = 177.44, which is less than his daily wage of 196.41. He will get 18.77 Rs less. In a month, this category is having more than 3000 hours of overtime.
Now the problem is that I want to adjust basic, DA, and other allowances so that he will get paid for overtime as per his gross salary.
My questions are:
1. Can I make basic less than DA? If yes, what is the legal point (DA will increase after a certain period)?
2. Should I combine basic and DA amounts?
3. Can I pay overtime on gross (but it will be one time only)?
4. Or is there any way out?
I hope you understand my problem; if you need more information, please reply. I want to give this to our management within two days. I tried to put as much as possible; please help me out.
Best Regards,
Sachin Gaikwad
From India, Mumbai
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Dear friends, The basic salery can be below the minimum wage but the total wges i basic +hra+conveyence etc total together shoulb meet the minimum wages as per the minimum wages act with ap rules
From India
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From India
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Dear Sir, Can u send me the any GO in this regard as I heard that MW is the composition of Basic + DA Ajay Shukla 09839066035
From India, Calcutta
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From India, Calcutta
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Whatever the case may be, the monthly gross should always be the same or higher for skilled or unskilled workers according to the Minimum Wages Act and state rules.
Regards, Purabi Nayak
Manager-HR
09937000525
From India, Bhubaneswar
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Regards, Purabi Nayak
Manager-HR
09937000525
From India, Bhubaneswar
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If someone’s gross salary is Rs. 5000/- per month, can his basic salary be Rs. 2000/-. Is this in compliance of Minimum Wage Act?
From India, Pune
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From India, Pune
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Please review the corrected text below:
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Please go through the below-mentioned definition:
Wages mean all remuneration capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment. It includes house rent allowance but does not include the value of any house accommodation, supply of light, water, medical attendance, or other amenity or service excluded by general or special order of the appropriate government; contribution paid by the employer to Pension/Provident Fund or under a scheme of social insurance; traveling allowance or value of traveling concession; sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or any gratuity payable on discharge.
Hence, the basic salary may be Rs. 2000/- to fulfill the minimum wages act.
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From India, Bhopal
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Please go through the below-mentioned definition:
Wages mean all remuneration capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment. It includes house rent allowance but does not include the value of any house accommodation, supply of light, water, medical attendance, or other amenity or service excluded by general or special order of the appropriate government; contribution paid by the employer to Pension/Provident Fund or under a scheme of social insurance; traveling allowance or value of traveling concession; sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or any gratuity payable on discharge.
Hence, the basic salary may be Rs. 2000/- to fulfill the minimum wages act.
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From India, Bhopal
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Dear All , Basic+VDA can not less than from minimum wages as per working nature of worker.and you can not bifurcate the minumum wages. Shekhar Singh HR Manager
From India, Lucknow
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From India, Lucknow
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HRA is a part of wages (Basic + DA) as per the Minimum Wages Act. In Maharashtra, there is a separate Act for the payment of HRA. Query: whether HRA should be paid apart from Basic + DA as notified by the state of Maharashtra or not. Any case law in this regard, please.
Regards,
Laxman
From India, Pune
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Regards,
Laxman
From India, Pune
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I would really like to have some insights or a copy of SOH on one of the HRM functions, which is the Operative Function. This is how this function operates in both theory and practice.
Thank you so much for your help in advance.
From Papua New Guinea, undefined
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Thank you so much for your help in advance.
From Papua New Guinea, undefined
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Minimum Wages law is applicable in Staff salary?? My Basic Salary is not even 50% of minimum wages.
From India, Ankleshwar
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From India, Ankleshwar
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Does it mean that we keep changing the BASIC every 6 months even if someone's total salary (Basic + HRA + TA + Other Fixed allowances + Variable Performance Allowance) is greater than Minimum Wage?
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Does it mean that we keep changing the basic every 6 months even if someone's total salary (Basic + HRA + TA + other fixed allowances + variable performance allowance) is greater than the minimum wage?
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Does it mean that we keep changing the basic every 6 months even if someone's total salary (Basic + HRA + TA + other fixed allowances + variable performance allowance) is greater than the minimum wage?
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Dear Team, can you please send me the Minimum wages for Lead Industry (Metal industry) unskilled labours. regards, S.Karthick
From India, Chennai
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From India, Chennai
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KNOW ABOUT MINIMUM WAGES ACT.pdf
SELF-CERTIFICAT E PROFORMA UNNDER THE MINIMUM WAGES ACT, 1948.doc
Minimum Wages and PSAR Act.ppt