Interview Experience: Is It Fair to Expect Personnel Managers to Memorize All Minimum Wage Details?

Dear Members,

Greetings of the day.

Seniors and Juniors, I would like to share some experiences I had during an interview two days ago.

I was there for the Personnel Manager position. A gentleman asked me lots of questions regarding PF, ESIC, and other statutory compliance. I am discussing here the selected points:

1) He asked me about the Minimum wages of Gurgaon:

I informed him that the last minimum wages (unskilled) as per the HR government is Rs. 3510 (basis + DA). He further inquired about other slabs related to this. I explained that other slabs include SS, US, Clerical, Graduate, etc., in the notification, but I couldn't recall the exact figures at that moment. He commented that as a Personnel Manager in my current company, not knowing the figures is unprofessional.

Considering the above, I would like to ask all the experts here if working with unskilled manpower and not dealing with other slabs means I am unaware of the Minimum wages concept. If there is a need for other slabs, I will refer to the notification and fulfill the requirement. Is it realistic to expect an individual to remember all the notifications at any given time?

What are your suggestions or criticisms regarding this? Please share your views.

2) HRA in place of DA with basic to become Minimum wages

During the discussion, he asked me what minimum wages are. I explained that the state government sets the figure as Basic + DA. He then questioned whether replacing DA with HRA would still count as the minimum wage.

I appreciate your valuable input on this, which will aid me in the future.

Note: I met a person there who had been selected for the post before my interview.

Awaiting your kind replies.

Regards

HR is 5% of basic or can be more depending on the company, but DA is determined by the Cost of Living Index number. In Maharashtra, DA is referred to as Special Allowance. Therefore, the sum of basic plus special allowance should exceed the minimum wage. If you do not have any component of DA in your salary structure, then the basic salary should be greater than basic salary plus DA.

Anirban
9867140034

Thank you for your response, but I don't think you read my entire post. There are several other issues to address.

I answered him that the last minimum wages (unskilled) as per HR govt. is 3510 (basis+da). He further asked me about other slabs in respect of this. I told him that other slabs are SS, US, Clerical, and Graduate, etc., in the notification, but I don't remember the other figures right now. Then he says, "You are working as a Mgr Personnel in your present company, and you don't have the figures; this is unprofessional." Is it possible for an individual to remember all the notification at any particular point in time?

It's normal that you know the slab for unskilled, but when appearing for an interview, it is presumed that you know other slabs with figures of your industry. For instance, HR of a Banking Company should know the minimum wages for all slabs, though most of us do not usually remember it by heart. But for an interview, knowing figures will show your familiarity with the Act.

So far as the role for the interviewer is concerned, it is unethical to remark on the profession. He may have done this to negotiate the salary part because you don't know the figures. However, I feel whatever you said in the interview is fine since you know the concept of minimum wages. Regards, Anirban

Dear Mr. Pulsar,

In Noida, the minimum wages are as follows:
- Skilled: 3889
- Semi-skilled: 3504
- Unskilled: 3073

According to the state government, Basic + DA = Minimum wages. If we replace DA with HRA, it will not be considered as part of the minimum wages.

Best regards,
Manjari

Dear Mr. Pulsar,

M. Wages of Haryana have been revised as per notification sr.no. 28214/308, dated 27/05/2008, of the Labour Commissioner, Haryana, with effect from 01.01.2008.

For unskilled labor - monthly wages are Rs. 3586, and per day is Rs. 138.
For semi-skilled (Category A) - Rs. 3716 and Rs. 143 respectively.
For semi-skilled (Category B) - Rs. 3846 and Rs. 148 respectively.
For skilled (Category A) - Rs. 3976 and Rs. 153.
For skilled (Category B) - Rs. 4106 and Rs. 158.
And for highly skilled - Rs. 4236 on a monthly basis and Rs. 163 per day.

Kindly update,
Surendra

HRA is a part of minimum wages. If you read the definition of wages as per the Minimum Wages Act, it clearly states that "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. It includes house rent allowance but does not 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 person 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.

Hi,

Recently, I have gone through a similar experience. I work for a small software company where I was asked about several laws in-depth and every detail. Personally, I believe that as and when required by our organization's needs, we can acquire knowledge. However, when it comes to interviews, we should be well-versed in every aspect. For instance, if someone claims to know about the Maternity Benefit Act, they should be familiar with every detail. One needs to have a strong grasp of fundamentals and theories. This advice was given to me by the interviewer, who had about 4 to 5 years of experience in a CMMI 5 level company, when he concluded that I did not meet his requirements. I think during interviews, we should be knowledgeable about the details of the implementations we have worked on.

Please reply or email me at [email protected]

Thanks very much, friends, for providing this valuable information. I would like to know more about minimum wages. Is it different from state to state? As I am a fresher MBA student, please help me.

Dear Mr. Pulsar,

If we add HRA in place of DA, then it will not be counted as part of minimum wages. In the act, it is clearly mentioned that Basic+DA equals minimum wage. HRA is something employers generally include when giving increments to employees who are receiving minimum wages as their salary, just to reduce their costs. If they add the incremented amount to the minimum wage, then they would have to pay more contributions in terms of ESI, PF, WC, etc.

Also, the person who asked you for all the figures of minimum wage was on the wrong track. I am working with a rural retail giant and have to manage operations across 08 states. It is very difficult for us to remember the minimum wage of each state. If someone asks, I may not be able to provide an answer as my primary task is to track notifications and implement orders accordingly.

Regards,
Sant

Dear Sir,

I am giving some information regarding Minimum Wages Act 1948

This is for all who is not having knowledge Minimum Wages Act

Object of the ActTo provide for fixing minimum rates of wages in certain employments

Fixation of Minimum Rates of Wages: The appropriate government to fix minimum rates of wages. The employees employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27. To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates. Government can also fix Minimum Wages for • Time work • Piece work at piece rate • Piece work for the purpose of securing to such employees on a time work basis • Overtime work done by employees for piece work or time rate workers.

Minimum Rates of Wages: Such as Basic rates of wages etc. Variable DA and Value of other concessions etc. Sec. 4

Procedure for fixing and revising Minimum Rates of Wages: Appointing Committee issue of Notification etc. Sec. 5

Composition of Committee: Representation of employer and employee in schedule employer in equal n umber and independent persons not exceeding 1/3rd or its total number one such person to be appointed by the Chairman. Sec. 9

Payment of Minimum Rates of Wages:Employer to pay to every employee engated in schedule employment at rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed. Sec.12

Wages of workers who works for less than normal working days :Save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day. Sec.15

Wages for two class of work: Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, wages at not less than the minimum rate in respect of each such class. Sec. 16

Maintenance of registers and records:
• Register of Fines – Form I Rule 21(4)
• Annual Returns – Form III Rule 21 (4-A)
• Register for Overtime – Form IV Rule 25
• Register of Wages–Form X, Wages slip–Form XI, Muster Roll–Form V Rule 26
• Representation of register – for three year Rule 26-A Sec. 18

Minimum time rate wages for piece work: Not less than minimum rates wages as fixed . Sec. 17

Claims by employees:• To be filed by before authority constituted under the Act within 6 months.

Penalities Offence Punishment: For paying less than minimum rates of wages. Imprisonment upto 6 months or with fine upto Rs.500/-



Sec. 20 For contravention of any provisions:

pertaining to fixing hours for normal
working day etc.
Imprisonment upto 6 months

Regards,
Prasad

Good morning to all experts,

Thank you very much for your valuable thoughts. The reply about minimum wages (HRA in place of DA) is still contradictory.

Note: Please have a look into Anjali Sharma and Sant's views in this respect.

Regards,

Vikas Kumar

Dear Pulsur and Other friends,

Ms. Anjali Sharma has rightly provided the definition of minimum wage as per the Act, which I reproduced below:

"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 not 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 person 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.

Now, I just want all readers to read the definition.

It is clearly mentioned that house accommodation is not included in Wage.

HRA (house rent allowance) is nothing but house accommodation, so HRA cannot be included in minimum wages.

There are lots of judgments of S.C on this point. If you want any S.C rulings, I am ready to post them.

Regards,
Anirban
Advocate & HR Consultant

Dear all,

HRA is not a part of Min. Wages defined under the MW Act 1948. Every state has its own MIN. Wages, and Min. wages even differ from industry to industry.

Thanks,
PK Tripathi

Dear Pulsar,

Your interviewer was quite rude. A HR Professional working in a particular state should have knowledge of minimum wages for all categories, i.e., unskilled, semi-skilled, skilled, highly-skilled. At least one should update before going for an interview. HRA is not part of minimum wages. Minimum wage includes Basic + Dearness Allowances (D.A.). Dearness Allowances change every six months, and notifications are available in the Labour office. The minimum HRA paid is 5% of Basic + D.A. Provident Fund is calculated as 12% of Basic + D.A. as an employee contribution. The employer's contribution is 8.33% to the Pension Account and 3.67% to the Provident Fund Account. Also, if Basic exceeds Rs. 6500/-, then the employer has the right to deduct P.F. on 6500/-. In the case of ESIC, the employer's contribution is 4.75% and the employee's contribution is 1.75%.

Hope your query is resolved.

Regards,
Nimish Joshi
9969526325

Dear Mr. Pulsar180,

As far as minimum wages is concerned please read carefully under mentioned :


As per the letter No. 28214-308 dated : 27/05/08 , issued from the Office of Labour Commissioner , Haryana , please note following for your reference and action.

As per the Minimum Wage rate for all category of Workmen Rs.76.00 [ Seventy Six ] has been increased in case of monthly rated & Rs.3.00 [Three] has been increased in case of daily rated workman. The different category has been shown in the table, given below:

SL.NO
CATEGORY
MONTHLY WAGE
DAILY WAGE
1
Unskilled
Rs.3586.00
Rs.138.00
2
Semi-Skilled (A)
Semi-Skilled(B)
Rs.3716.00
Rs.3846.00
Rs.143.00
Rs.148.00
3
Skilled (A)
Skilled (B)
Rs.3976.00
Rs.4106.00
Rs.153.00
Rs.158.00
4
Highly Skilled
Rs.4236.00
Rs.163.00

In addition to above , following rate(s) have been fixed in the field of “Brick-Klin”

Pathera
Bharat wala
Keri wala(per 1000)
Nikasi wala(per 1000)
Chinai wala (Per Month )
Mistri
(Per Month )
Brick
Tiles
A
B
204.00
230.00
92.00
76.00
16.00
67.00
3976.00
3976.00

If we discussed regarding attitude of interviewer and candidate, There are some ego problems may be or may not be. We supposed to prepare well before apearing for any interview & cant comment / bet with interviewer,
They may be wrong of may not be. but we have to be open, polite & keen learner.

Do not blame any one, prepare yourself for all conditions / situations in future.
"Many of life's failures are people who did not realize how close they were to success when they gave up."
Thomas A. Edison

"Many of life's failures are people who did not realize how close they were to success when they gave up."
Thomas A. Edison

Please see this is the last revised minimum wages of haryana govt.



As per the letter No. 28214-308 dated : 27/05/08 , issued from the Office of Labour Commissioner , Haryana , please note following for your reference and action.

As per the Minimum Wage rate for all category of Workmen Rs.76.00 [ Seventy Six ] has been increased in case of monthly rated & Rs.3.00 [Three] has been increased in case of daily rated workman. The different category has been shown in the table, given below:

SL.NO
CATEGORY
MONTHLY WAGE
DAILY WAGE
1
Unskilled
Rs.3586.00
Rs.138.00
2
Semi-Skilled (A)
Semi-Skilled(B)
Rs.3716.00
Rs.3846.00
Rs.143.00
Rs.148.00
3
Skilled (A)
Skilled (B)
Rs.3976.00
Rs.4106.00
Rs.153.00
Rs.158.00
4
Highly Skilled
Rs.4236.00
Rs.163.00


In addition to above , following rate(s) have been fixed in the field of “Brick-Klin”

Pathera
Bharat wala
Keri wala(per 1000)
Nikasi wala(per 1000)
Chinai wala (Per Month )
Mistri
(Per Month )
Brick
Tiles
A
B
204.00
230.00
92.00
76.00
16.00
67.00
3976.00
3976.00


You may forgotten all the episode you have faced at the time of interview, we cannot comment / bet for that interviewer, But you have to prepare yourself for future challlanges.

Keep smiling!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Dear Friend,

As a professional, you must know everything about your profession, not only those things that are applicable to your organization. When it comes to including HRA or DA in minimum wages, DA is factored into minimum wages as it depends on the cost of living in that particular region or state, whereas HRA does not depend on the cost of living.

Regards,

Dear Friends,

I'm Kittu here. I need information on the minimum wage slabs for skilled, semi-skilled, and unskilled employees in Andhra Pradesh. Could you please help me with this?

With regards,
Kirti Kothari

HRA CANNOT BE A COMPONENT OF MINIMUM WAGES

2. Interpretation

In this Act, unless there is anything repugnant in the subject or context:

(c) "competent authority" means the authority appointed by the appropriate government by notification in its Official Gazette to ascertain from time to time the cost of living index number applicable to the employees employed in the scheduled employments specified in such notification;

(d) "cost of living index number" in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed means the index number ascertained and declared by the competent authority by notification in the Official Gazette to be the cost of living index number applicable to employees in such employment;

(g) "scheduled employment" means an employment specified in the Schedule or any process or branch of work forming part of such employment;

(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 not include:
(i) the value of 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.

Regards,
Anirban

Dear Mr. Pulsar,

Minimum wage equals Basic + DA. We never count HRA in place of DA. For more information about the basic wage for skilled and unskilled labor, please find the attachment herewith. I hope it's useful for you.

If you have faced this type of question, it happened because they may find a suitable candidate before your interview, and how can you say no? That's why they are asking these types of questions. It happened with one of my friends as well.

Thanks & Regards,
Dipali Lakhani

My dear friend,

Every state notifies minimum wages on a yearly basis. Other than Basic Wage and DA, none of the other components come under minimum wages or are notified. You can give different names to different salary components, provided you show Basic Wage and DA wages as per the minimum wages notification in all the registers & records pertaining to wages.

Best regards,
dat

Dear All,

This link may help you all: [Paycheck.in - Haryana](http://www.paycheck.in/main/officialminimumwages/haryana)

Please let me know if you need any further assistance. Thank you.

It is not possible for one to remember all the schedules and slabs, and it is not required either. A Personnel Manager is not a supernatural hero. The interviewer should not have commented on it. There should be some personal interests for him to drop you. Don't worry, you will get a better opportunity.

The Minimum Wages comprise a basic rate of wages and a Dearness Allowance variable according to changes in the cost of living index. This Variable DA is not a percentage of Basic wages but will be equal for all employed in the industry as a whole. Whatever the composition of the salary, if the element of VDA is absent, the same cannot be treated as minimum wages as per the Act. Therefore, HRA cannot replace DA, and even if you pay HRA to workers to whom the Minimum Wages Act applies, you have to pay VDA as well. Since HRA does not take into account the cost of living index, it will not compensate for the DA.

Regards,
Madhu.T.K

Hi,

If an interviewer does not want a candidate whom he is interviewing, he will ask tricky questions to put you in trouble, and in the end, he will say you are unprofessional. It is quite common nowadays, and we have to face it. This is my opinion.

KRISHNAMOORTHY

Dear Pulsar,

Don't regret for not knowing all the figures on your tip. It is impossible. We cannot go about memorizing all by heart. Even as an HR Manager in Chennai, I don't know many of these figures, so I always have a ready reckoner book (latest edition) with me for reference.

Many managers ask these just to pull off the interview time and for the sake of questioning the candidate. Many amendments in PF/ESI/P-tax, etc., are happening and sometimes we may not know that. So we have to cross-check with updates and for that matter, one cannot be scolded or humiliated. No one is perfect...!!

In case of doubts, you can always ask the CiteHR friends here or search the Net.

In the absence of pay components, the consolidated Gross itself is considered as Basic. Unless otherwise mentioned in the structure, you don't have DA/HRA/Cony? Others. So, Min wages means Basic or (Basic+DA).

Keep going, dear.

Regards, Chandru Manager - HR, Chennai

Well said, Madhu. I think our real-time senior managers are good enough to demotivate the newcomers to the HR arena. It all goes with personal attitude. What to do..!!!

Hi,

If you don't have any component such as D.A. in your Salary Structure, then your Basic should consist of (Basic + DA), and it should be as per the minimum wages for any category. H.R.A. will never be considered as a part of D.A.

Regards, Amit Bahuguna

Interviews are often nothing but eye wash. In reality, most HR managers in IT companies work in a selfish manner. How, you may ask? They fail to ask relevant questions that support the job designation. Even my friends have encountered such situations where irrelevant questions are raised intentionally. It's amusing how HRs tend to ask quirky questions.

As per my knowledge, Basic + DA is essential. If you remove the DA, then you will have to give basic more than Basic + DA. HRA will be 5%, which is mandatory as per the Minimum House Rent Act. The government declares minimum wages as Basic + DA, and they assume that a minimum of 5% HRA will be given extra by the employer to the worker where the HRA Act applies.

Please let me know if you need further clarification or assistance with this information.

Dear Members,

Greetings of the day.

Seniors and Juniors, I would like to share some experience I had during an interview two days ago. I was there for the Personnel Manager position. There was a gentleman who asked me lots of questions regarding PF/ESIC and other statutory compliance. I am discussing the selected points here:

1) He asked me about the Minimum wages of Gurgaon. I answered him that the last minimum wages (unskilled) as per the government is 3510 (basic + DA). He further asked me about other slabs in respect of this. I told him that other slabs are SS, US, Clerical, and Graduate, etc., in the notification, but I don't remember the other figures right now. Then he said, "You are working as a Manager Personnel in your present company, and you don't have the figures; this is unprofessional." Keeping the above in view, I want to ask all of you experts if I am working here with unskilled manpower, and there is no existence of other slabs, it does not mean that I am unaware of the Minimum wages concept. If there is any requirement for another slab, then I will go through the notification and execute the requirement. Is it possible for an individual to remember all the notifications at any particular point in time?

What are your suggestions or criticisms in respect of this? Please mention your views.

2) HRA in place of DA with basic to become Minimum wages. During this discussion, he asked me what minimum wages are, and I replied that the state government sets the figure which is Basic + DA. Then he asked me if I put HRA instead of DA, then would it count as a minimum wage or not. I need your valuable point on this, which will be helpful to me in the future.

Note: I met with a person over there who was selected for the post before my interview. Awaiting your kind replies.

Regards

Minimum wages = Basic + DA only. (HRA is not a substitute for DA) HRA is subject to the payment of the HRA act, and a minimum of 5% of the Basic + DA is payable.

Dear,

I am giving hereunder the suggestions pointwise:

1. Minimum Wages: Current Minimum Wages are US-Rs. 3588/-, SS (A) Rs. 3716/-, SS(B) Rs. 3846/-, SK (A) Rs. 3976/-, SK (B) Rs. 4106/-, HS Rs. 4236/-. If you work in the same nature of the company, then this question is genuine. You should be aware of all the slabs.

2. DA: As per the judgment, we can't split the minimum wages for the purpose of saving the PF contribution. That's why within MW, we can't replace the DA with HRA. After crossing the MW limit, we can replace DA with HRA.

I hope your point is clear.

Regards,
Jitender

Dear Mr. Pulsar 180CC,

Minimum Wages: According to the Minimum Wages Act of 1948, wage includes House Rent Allowance (HRA) but does not include Provident Fund (PF) contribution by the employer and gratuity payable.

Hence, the minimum wages declared by State Governments need to be bifurcated as Basic + Dearness Allowance (DA) + HRA. These three components should equal the total minimum wages.

This is my idea regarding this.

Thank you.

Regards,
Swaroop
HR

Dear Friends,

I agree with the views of Anjali and others that minimum wages will include House Rent Allowance (HRA) as it is clearly and unequivocally provided in the definition itself. What is excluded is any house accommodation provided by the employer; there is a difference between HRA and physical housing provided by the employer.

Views invited.

Regards,
Sanjiv

Dear Manjiri,

You should know what the minimum wages are for skilled, semi-skilled, and unskilled workers. Additionally, you must be aware of the breakdown of Basic + DA (updated).

Regarding HRA, it cannot be included in the Basic amount. There is a possibility that they may ask you such questions to confuse or check your knowledge. Stay firm in your responses and always keep yourself updated with the latest information.

Regards,
Nitin Nikam

As per the Minimum Wages Act, for minimum wages as notified by the government, it means Basic+DA and any other component that you are referring to, like HRA, Conveyance, or any other components that are assumed to be taken care of while deciding the minimum wages. You can check any of the Minimum Wages Notifications.

Regards,
MRN

Dear All,

Please understand that the minimum wage consists of only basic pay and dearness allowance (DA). No other allowances are included in it. For Provident Fund (PF) calculations, we only consider basic pay and DA. Even if your gross salary is Rs 50,000 per month, your basic pay must adhere to the minimum wage requirement.

In some states, skilled workers have a minimum of Rs 4000 per month as their basic pay plus DA. This means that your basic allowance must be a minimum of Rs 4000.

Regards,
Niitn Nikam

Hi! I appreciate your interesting post.

Regarding Basic + HRA to become Min. wages

Min. Wage constitutes Basic + DA. Any other emolument or fraction of emolument can't be counted under this term as per the Minimum Wages Act.

Regarding Slabs unanswered

Well, as a Manager, it was not as necessary as it was portrayed at that moment to remember tiny issues like this or that. Don't let your guard down with these kinds of occurrences; it may be a pre-decided interview.

Regards

Dear Manjari and Pulsar,

According to the Supreme Court judgment, the total sum paid to workmen should be considered for minimum wages. Other components such as HRA, conveyance, and special allowances paid by the employer are to be taken into consideration for fulfilling minimum wages. Hence, HRA should be taken into account for meeting minimum wages.

Roy

The minimum wage is the basic wage that every employee has a right to receive from their employer. Every year, the state government of each state will establish minimum wage rates.

For example, you can find the minimum wage rates of Haryana here: [Haryana Minimum Wages 2018 Latest Notification](http://www.hrcabin.com/haryana-minimum-wages/)