Minimum Wage Increase: Do We Need to Adjust Salaries Already Above the Minimum?

Hello Seniors, once we are already paying more than minimum wages, are we liable to pay the impact of increased/revised minimum wages? Waiting for your guidelines.

Regards,
Bhuwan Singh Bisht

The required condition is that no employee should be paid below the minimum wages prescribed. Please periodically check, for example, every April, whether your employees are receiving more than the minimum prescribed amount (considering factors such as Basic + DA) due to the rise in DA. That should be sufficient.

Enclosed herewith is the minimum wage detail.

Thank you.

Dear Bhuvan,

In this case, as a service provider to clients, I used to decrease the amount in other components and increase in basic or DA (whichever applicable) until the client/principal employer increases the wages in contract, or else the employer has to maintain the basic and DA as mentioned in the notification for that particular time.

Dear Bhuwan,

If you are already paying more than or at par with the appropriate government-declared minimum wages at a particular time, then you are not supposed to give any increase or arrears of wages resulting from an increase in the Consumer Price Index unless you have any agreement or settlement in force with the employees for payment on the increase of CPI.

R.N. Khola

---

7 views, only one reply...!!!#$??%&?! Seniors, please, I need some more replies.

Regards,
Bhuwan

People will read or reply when they have time or find the topic interesting. As far as I know, no one is sitting waiting to serve you. Being abusive does not help.

Regards,
Bhuwan

The Minimum Wages Act states that you need to pay minimum wages as applicable at that time. This means revised wages need to be paid as soon as they are notified or increased by the government. Minimum wages are generally revised twice a year.

Also, remember that minimum wages consist of basic pay plus Dearness Allowance (DA) and not the total amount you are paying, including any structured allowances. Furthermore, it's for an 8-hour shift.

Dear Saswatabanerjee,
I posted my query here to increase my knowledge & to clear my doubt. This site is not about any bollywood news where you will find any interesting things then only you'll add their comments. This site is for to help and share there knowledge to the members who are requesting for their guidelines.
By the way thanks for your response.

Dear Saswata Banerjee and Bhuwan Bist,

Both you and we all are wheels of a running train, keeping it running without any hesitations. Everyone here wants to learn something more from each other, so be relaxed and keep sharing for the sake of knowledge.

Bhuwan, you need not increase a salary if you or your company is paying more than minimum wage. Only when the minimum wage meets the actual salary, should you consider this point. Of course, this doesn't mean you have to stop annual increments because that serves as a booster for employees.

Please keep smiling and try to understand each other. As an unknown friend, this is my suggestion; don't take it the wrong way.

Regards,
KIRAN KALE

Kiran,

Just a point to ensure your (and others') input is not misunderstood:

You do not have to increase salary as long as it is higher than the current Minimum Wages notification. Also, note that this is revised twice a year, and for Maharashtra, it is also revised for shops and establishments again by the end of September 2010.