Sr. Hr Executive
We are not supposed to deviate from any statutory practices as prescribed by the law for any reason. Basic in salary should be always same or more than Basic + DA as prescribed in the minimum wages notification. Not following the right practice may attract statutory problems while inspection to you.
20th May 2017
I have question regarding the same.I have gone through a judgement of Karnataka High court in which they have mentioned that "Minimum Wages-Basis-One Package of fixed amount comprising various components based on cost of living- not to be split in components-Cost of Living includes also Variable Dearness allowance-Employer paying more than the minimum wages- Not liable to pay any further amount on the basis of variable dearness allowance-Minimum Wages Act,1948 SS.2(h),3,4,5."
Need your advice on the above statement
20th May 2017 From India, Pen
As far as Bonus is concerned, you are required to pay minimum Bonus of Rs.7,000/- if the employee has worked for full year without any deduction in salary. Here you are not allowed to take advantage of lower Basic pay. i.e. even an employee is getting Basic pay of Rs.4,000/- p.m. he will get annual Bonus of Rs.7,000/- or as per the earned Minimum Wages, whichever is higher.
PFA Courts Judgement of Delhi & P&H High Courts on the subject for your reference.
22nd May 2017 From India, Thane