PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Labour Law & Hr Consultant
Industrial Relations And Labour Laws
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You need to give more information when the components of actual basic pay and dearness allowance are less than the minimum wages.
Whether your industry wage structure comprises of other components falling under the definition of wages u/s 2 (h) of the Minimum Wages Act,1948 in addition to the basic and D.A?
Whether the statutory gross minimum wages per month is less or more than Rs.7000/= the ceiling on monthly wages fixed under section 12 of the Payment of Bonus Act,1965?
From India, Salem
JAWAHAR LAL MOONDRAu/s 2 (h) of the Minimum Wages Act,1948
(h) "wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment,  [and includes house rent allowance] but does n6t include
(i) the value of -
(a) any house- accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge;
Therefore for the purpose of minimum wages act - Sum total of Basic + DA + House Rent Allowance + Special Pay + Children Education Allowance + Washing Allowance shall be considered and should not be less than minimum wages.
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From India, Jodhpur
Madhu.T.KFirst of all, you are not permitted to even operate when you are paying wages less than the statutory minimum wages fixed by the government. Now, suppose that your industry is not scheduled employment under the Minimum Wages notification and hence there does not exist any minimum wages, then you can do the calculation of bonus restricting the wages to Rs 7000 per month.
From India, Kannur