There still a lot of confusion prevails. Minimum Wages announced by Government is to ensure the labours are paid the wages determined by the Govt. For example if Minimum wages payable to particular category of worker is Rs.5500/-. Govt.also fixes Basic such and such amount and DA such and suc amount, etc. and the total salary payable as minimum wages is arrived at.
As far as I understood that of the above example (of Rs.5500/- as minimum wages), the wages can be split into components like Basic, HRA and conveyance and the total may be on par with Rs.5500/- or above. In this case, the employer would have fulfilled the requirement of Minimum Wages notified by Govt.
On the other hand, if govt. announces Basic Rs.3500, and VDA Rs.2000 the total arrive at Rs.5500/-, is this OK to split the salary like this: Basic Rs.2000; HRA, 2500/-; Conveyance Rs.800/- and Attendance allowance Rs.200/- and thus arriving at Rs.5500/- p.m. and ultimately paying them Rs.5500/- (or you can design in such a way to pay more too).
13th July 2012 From India, Madras