Partner - Risk Management
Asst.manager -hr
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Dear All,
Greetings of the day.
I hope your doing well ! Now my question is How fix the salaries for Employees. I knew it this one depends on Minimum Wages Act But the Govt of States are giving the points about DRA but i am not able to understand about that please guide it me how to convert points into the salaries.
Please provide your contacts details i will call back on the same topic please guide me.

From India, Hyderabad
Regular Positions
The appropriate manager/supervisor, in concert with Human Resources, will determine rates of pay for new employees under the terms of this policy.
New employees are normally hired at the minimum of the pay band allocated to the position. The candidate's salary offer may be within the pay band when the individual's experience and qualifications are compared to internal equity considerations and the position requirements. In extraordinary circumstances, a vice-president may permit Human Resources to hire a candidate beyond the midpoint and/or maximum of the pay band. These situations will be documented and placed in the employee’s file.

From India, Mumbai
Ashok - Compensation is not only decided by the minimum wages act, but also influenced by the prevailing supply/demand ratios in your industry. You can use the minimum wages as the basic component and build out others on top of that plus add special allowances, bonuses, etc.
Specifically for you - use the MWA as the bottom line and compare cv's from the market for the applicable median +/- 15% or 20% and then use one of the salary calculators to design a ctc package.
Hope this helps.

From India, Mumbai
I am not happy with about information is there any one guide me withe more explanation.?
From India, Hyderabad
The company is free to fix the salary rates for employees. It is not actually linked to the minimum wages regulations.

However, the company can not pay wages or salaries that are below the minimum wages act.

The states generally announce new minimum wages every 6 months by way of a notification.

The notification contains the wage rates for each type of work (sector / industry group) and level of skill (unskilled, skilled, semi-skilled, etc)

I think what is confusing you is the way the wages are notified.

In most cases, the wages were fixed by the board quiet some time ago. They do not change the rates as such, since each change involves a huge process and a lot of study, data analysis etc.

Instead, what they do is to flex the wage rates upwards for the inflation factor.

So the notified wages are in 2 parts - Basic and DA.

Basic remains constant (check for the last 4 years, it will be the same)

DA is taken up based on the Consumer price index.

So what is notified in the increase in DA by way of points.

What really matters to most of us is the total amount of wages, which will be in the 3rd / 4th column.

What you need to basically focus on is that your Basic + DA is not less than the amount notified in the notification.

Best way is to give basic + Da exactly in line with the notification for all those who are getting minimum wages only.

Hope this helps

From India, Mumbai
Perhaps i am not clear on what your actual problem is.
If you can explain that, i will try and give the answer to you.
A lot of details on this is provided in Dearness allowance - Wikipedia, the free encyclopedia
And more links from that page (if you are looking at things like how exactly the numbers are arrived at....)

From India, Mumbai
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