Industrial Relations And Labour Laws
Principal Consultant

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Hi Friends,
I have an issue to discuss in this.
Say as per the minimum wages act, for a semi-skilled workforce, the gross salary is Rs. 4500/- and we pay Rs. 5000/- as gross salary. In such a scenario can the company has its own wage structure for the employee. If yes, can anyone please help with the notification or any case for reference.
26th October 2009 From India, Mumbai
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.
26th October 2009 From India, Kannur
Thanks Madhu for the advice.
I am aware of this point but had this issue in our company, as we are paying over and above the minimum wages, i am not keen on changing the salary structure.
Anyone else can thorugh some light on this and if there is any judgement in favour of this, can it be helped with.
27th October 2009 From India, Mumbai
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