Madhu.T.KSo long as the salary that you pay is higher than the Basic and DA as notified by the government for minimum wages, you are said to comply with the requirements of law. Therefore, if you have been paying Rs 15000 with a break up applicable to your organisation only, you can continue to pay like that. The question of basic and Da as per minimum wages notification comes when there is a dispute with regard to payment of gratuity.Normally, you will take the Basic salary for calculation of Gratuity. But in respect of employment to which minimum wages have been notified, it should be that minimum wages,implying basic and DA, that should be taken as the base for gratuity calculation.
this will apply in other cases also, like bonus calculation, encashment of leave, etc.
From India, Kannur