Are We Legally Safe Paying Basic Wages Below Minimum If Total Salary Meets Requirements?

Dear all,

I have a query regarding basic wages. If we are paying basic wages less than the minimum wage but the overall salary is more than what is required by the Minimum Wages Act, are there any legal complications?

Regards,
Jaga

Gentleman,

Basic wages, as per minimum wages, are fixed based on zone and industry classification for unskilled, semiskilled, skilled, and highly skilled workers. In addition to this, there is a special allowance called variable dearness allowance for the cost of living index, revised from time to time.

You have to ensure that the salary break-up nomenclature should not violate the objectives of the Minimum Wages Act. Basic wages are basic wages; you cannot break them into allowances. Although the final payment of wages shall not be less than the prescribed minimum wages, it does not violate minimum wages in principle. However, you must avoid having an interpretation on record if you pay above the minimum wages. There is always a scope for wrong interpretation, which is debatable.

Regards

Dear,

First, decide the appropriate government, i.e., Central or State of your unit, and then refer to the latest minimum wages notification for your query.

Regards,
R.N. Khola

(Labour Law & Legal Consultants)
09810405361

Dear Mr. Kohla,

Thank you for your reply.

If this question is to be asked in the interview about what the minimum wages have been decided by the government, then in that case, what would be the accurate answer?

Thanks and regards,
Yogita