Understanding Minimum Wages: Is It the Basic Salary or Gross Salary?

What is the definition of Minimum Wages? Is it Basic Salary or Gross Salary? Please clarify.

Regards,
Jony_M

As per my understanding of the Minimum Wages Act, the Minimum Wages include Basic, Special allowance, House rent allowance, etc., and any other cash equivalent of any food grains given to the employees at a subsidized rate. However, DA is not a part of the above and is calculated separately.

Hi Jony,

As per section 2(h) of the Act, "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]. So you can say it includes Basic, HRA, and other allowances paid in terms of money but not the traveling allowance.

Regards,
Amit Seth.

The Minimum Wages Act defines wages as "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, 1*[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 Pension Fund or Provident Fund or under any scheme of social insurance; (iii) any travelling allowance or the value of any travelling 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;

Ensure there is a single line break between paragraphs.

The Minimum Wages Act defines wages as "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, 1*[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 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;

Ensure a single line break between paragraphs.