Salary Slab - Food Chains

Dear Friends,
Plz share your views on what kind of salary slabs/ grades are followed in food chains.
If an employee is given a minimum wage of Rs. 3400/- (for Delhi, unskilled), what could be the possible break up of salary on appointment letter.
Quick response will be appreciated.
Thanks & Regards,
Sashmita

Dear Sashmita,
Myself Amit Seth basically from Lucknow but presently in Ahmedabad. I did my project training from Pizza Hut Delhi. Please find below the details of the same-
Basic 800
HRA 480
TA 800
Other allowance 1320
Gross PM 3400
Kindly revert whether its applicable or not....?????
Regards,
Amit Seth.

Dear Amit,
As per the law the minimum wage is equal to basic and special allow., then accordingly how can that be legaly correct.
And if your findings are true, is that justifiable ?
Your comments plz.
Sashmita

Hi Sasmitha,
You can split the salary in the following
Basic - 2700
HRA (25% of basic) 675
Other allowances 25
Basic salary must not be less than 2700. You can fix basic above this amount..
Regards,
Joylyn

If you could let me know the SALARY components in your structure, I woyuld send you the one by designing it.
Regards,
Kiran.

Dear Joylyn & Kiran,
Thanks a lot. As I was under the impression that basic wage is always equal to minimum wage and it can not be less than that, but at certain organisation I have seen the basic wage as low as Rs. 1700/-. Could plz confirm under which law & section basic wage can not be less than 2700/-
Kindly suggest the structure for gross of Rs. 3400/-
Basic:
HRA:
CA:
City Compensatory Allow:
Special Allow:
Shift Allow:
Incentive:(if any)
Thanks & Regards,
Sashmita

Dear Sashmita,
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 contract of the 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-
1. the value of-
a. any house accomodation, supply of light, water, medical attendance or
Yes one mistake is there TA doesn't come under wages. That amount you can include in other allowance.
But thanks dear due to your question i just refresh my memories.
Regards,
Amit Seth.

Hi Sasmitha
You need to check in the Minimum wages Act. You get details for various industries. You can check with your company auditor or legal advisor.
Regards,
Joylyn

The BASIC here means total inhand salary, but not the actual BASIC salary componenent. Anyhow, I am 90% sure of it, but not 100%. So, please check it. The salary structure would be
CTC 3400

BASIC 1000
HRA 400
CONV. 450
HMA 470
Special All. 461
Shift Allo. 350
PROF. 0
ENT. 0
LTA 0

GROSS 3131

PF 120
ESI 149


CTC 3400

INHAND 2956

Regards,
Kiran.

Dear All,
Basic wages cannot be less than Minimum Wages specified for particular category according to various state rules. PF & ESI deductions should be on minimum wages.
Best of Luck!