In karnataka recently Minimum wages revised with effective from 30.12.2017 as below
Highly Skilled : Basic Rs.15,423.40 + VDA
Skilled : Basic Rs.14,021.27 + VDA
Semi Skilled : Basic Rs.12,746.61 + VDA
Unskilled : Basic Rs.11,587.83 + VDA
Q: One employee Basic Rs.12,000 and HRA is RS 6,000 P/m total Gross salary = Rs.18000
he comes under the Skilled category need to revise his basic as mentioned above from Rs 12,000 to Rs 14,021. so can we reduce his HRA & add that amount in the Basic salary like Basic Rs. 14,021 & HRA Rs 3,979, can we restructure the existing salary with revised Minimum wages is it a right practice or HRA is mandatory to give 40% in Non metro 50 % in metro.
Request you to please share your opinions.
From India, Hyderabad