Good Evening All!! As per my knowledge Minimum wages means - Basic+DA. (284+72.20=356.20 P/D)
I have one question regarding salary.
If I recruit one employee on the company payroll and give 15000/- Gross Salary per month. so what will be the salary structure?
If I give basic - 6000/ DA - 5000 and HRA - 4000... is it ok structure?
Please guide.

From India, Vadodara

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Dear friend,

For converting the daily rate of statutory minimum wages to monthly rate, you have to multiply the daily rate by 30 which comes to Rs. 10686-00 [ 356-20X30]. Since the monthly gross salary offered is Rs.15000-00 including HRA of Rs.4000-00, it is correct. But, when the D.A raises with the rise in the Cost of Living Index in due course, you have to ensure parity between the prevailing minimum wages and industry wages as long as the Minimum Wages Act,1948 is in force.

If the Code on Wages,2019 comes into force, the MW Act,1948 would get automatically repealed. In such a situation, minimum wages should be construed strictly as per the definition of wages u/s 2(y) of the CoW,2019 which does not include HRA in which case to restore 50:50 ratio between Included and Excluded Components of wage structure due to eventual hike in D.A, the short fall in the prevailing D.A should be made good by adjusting the HRA proportionately for all indirect financial commitments like contribution to EPF, bonus, Gratuity etc.

From India, Salem

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