Understanding Minimum Wages: How Are They Calculated and Are You Compliant?

Dear All,

What are minimum wages? How are they calculated? Are they based on Basic or Gross salary?

For example, if somebody's Gross Salary is 3000/- (Rs. 100/- per day) for unskilled labour in Rajasthan, is this amount compliant with the minimum wages notification?

Please clarify at your earliest convenience.

Regards,
Hemant

Understanding Minimum Wages

Minimum wages refer to the lowest wages that an employer should pay to its employees. There are different minimum wages fixed for different categories of employees under a scheduled employment/industry, below which the employer should not fix wages. Normally, the minimum statutory wage will consist of a basic wage and a dearness allowance, which will vary according to changes in the cost of living index of the region where the employee is working. For details, please refer to the minimum wages notification of the concerned state with reference to your industry.

Regards,
Madhu.T.K