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Dear All,
I have a doubt
ex- suppose an employee salary is Rs.20000.00 per month, can we have to keep basic + da as per minimum wages or we can keep it as 50% of monthly salary.
Job location- delhi
Ankit Rao

From India, Delhi
Hi, it should be as per your state guidelines on Minimum Wages Act, your offering (Basic+DA) should be more than the minimum wages act.
From India, Mumbai
Dear Ankit,
As you need to follow the as per minimum wages which is applicable to you..
But, as latest judgement say that, MINIMUM WAGES CAN BE SPLIT INTO ALLOWANCES, but its only for PF.
In the appeal against the order of the EPF Authority under section 7A of the Act the appellant have stated that directing the appellant to deposit the dues is illegal as the EPF Authority has assessed the dues considering the allowances as ‘basic wages’.
The EPF Appellate Tribunal observed that the provident fund contribution is to be calculated on the basic wages and not upon the wages fixed under the Minimum Wages Act as already settled by the Punjab & Haryana High Court in the case of APFC Gurgaon vs. M/s. G4S Security Services (I) Ltd., 2011 LLR 316. Fixation of wage structure is within the domain of the employer. Wages can be split into allowances. Hence, order of the EPF Authority cannot sustain and appeal is allowed.
M/s. SSM Fine Yarns vs. RPFC, Madurai
ATA No.734(13) 2010 decided on 7.2.2012

From India, Mumbai
Dear Ankit Rao,
Wages under minimum wages means gross wages viz. basic & other allowances. The allowances may or may not include DA.
Few employers pay Basic+DA as lesser rate than the applicable minimum wages but pay allowances and ensure that such gross wages are more than prescribed. This way they reduce burden of PF & gratuity. Supreme court has held that gross wages should be equal to or more than gross wages.
Orgs have their own norms of apportioning monthly gross into basic & allowances - where there is no DA component. It can be 50 or 60% to basic & rest into allowances. If in Maharashtra & West Bengal 5 or more % should be apportioned for HRA (if employee strength is 50 or more)
Hope this satisfies your query.
Shrikant Prabhudesai

From India, Mumbai
There is no hard and fast rule to fix 50% of the Gross salary as Basic + DA. The Basic + DA should be equal to or more than the Minimum Wage prevailing in your state, at any circumstances it should not be less than the Minimum Wage
From India, Ahmadabad
Question is how to calculate DA based on price index on first April of the each financial year, which is the bench mark for the year. Give illustrations for each case.
a. Wages @ 100 basic
b. Wages @ 50 % basic + 50 @ DA
c. Wages @ 50 % + 50 % allowances other than DA

From India, Chennai
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