Understanding Minimum Wage Components: How Do Basic, DA, and HRA Fit In?

Hi,

Can anyone guide me on the components involved in fixing minimum wages, such as:

Basic + DA = Minimum Wages

OR

Basic + DA + HRA = Minimum Wages

This includes the definition of Basic. Is there any Act or Notification indicating Basic components other than the Wages Act 1948?

Thanks,
Sajiv

As per the Minimum Wages Act, minimum wages mean a basic rate of wages and Variable Dearness Allowance, which will vary according to changes in the consumer price index and compensate for any increase in the cost of living in the area. Minimum wages are fixed by the respective state governments, and there may be states that include House Rent Allowance as part of the minimum wages.

From an enforcement point of view, the total wages paid to employees should be equal to the minimum wages, irrespective of any bifurcation made by the employer. However, the total pay should not include any reimbursements but should only include actual and regular payments.

Regards,
Madhu.T.K