Labour Law & Hr Consultant
Asst.manager -hr
Pan Singh Dangwal
Joint Manager
Human Resources
+1 Other

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if minimum wages increased can we reduce take home or not
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Dear Friend,
Minimum wages revise yearly twice so it means you reduce employee take home salary, This is not good practise to reduce take home.
Minimum wages revise as per living cost of person so accordingly we need to pay revised pay without effecting their take home salaries.
The poster should have explained how he intends to reduce the takehome pay with a corresponding increase in the minimum wages.
Normally, any increase in the minimum wages would result in corresponding increas in the gross wages minus the proportional increase in the employee's contributions to statutory funds like the EPF and the ESI. Therefore, no possiblity of reduction in the takehome pay.
Dear Annony,
As per the law you are supposed to pay the Minimum Wages (as defined by the appropriate govt) and comply with the applicable acts.
As per my knowledge there is no law for "Take Home" or "CTC". Yes in extreme scenario the Take Home salary can be reduced despite increase in Minimum Wages. But that will be fall under "Unfair Labour Practice".
Dear Umakanth sir, this is possible in case the employer is paying some allowance over and above the MW. If the employer shift the increased amount from allowance into Basic Wages (with no hike in gross wages). In such case PF will be deducted on higher Basic and take home salary will be decreased.
This case should be prior to the Hon'ble SC Judgement (PF deduction of allowances as well).
Hope I am clear to all. Senior can throw more light on the matter.
Dear Poster,
Please be informed that intake salary can not be reduced in a revision. It is wrong on both ethical and legal terms.
Also Govt. increases the minimum wage with an intention to increase in hand salary only.
Here we go the best example if the Minimum wages increased :
Mr. A has basic salary :10400,Per day salary:400 and other case allowance :4000 and total gross is:14400.After the minimum wage raised Mr . A Per day salary is 430 you are insist to pay basic salary :11180.So in that case you can tally the amount with other case allowance like 11180-10400=780 reduce this(780) amount in other case allowance :4000-780=3220 .At last Mr.A Per day wage is:430 Basic salary is:11180 and other case allowance is :3220 overall gross is:14400. so there is no need to reduce the take home salary after the minimum wage increased .Hope you understand.
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