Breakup of Minimum wages - letter we got from labour department is only showing daily wages & monthly wages

Respected all, Please help me out in how can we breakup our minimum wage because the letter we got from labour department is only showing daily wages & monthly wages for unskilled, semiskilled & skilled persons but they are silent in breakup of wages. i heard that (minimum wages = basic + DA) but i m not sure about it. kindly guide me.

The minimum rates of wages will include a basic wage each for different categories of workers and a dearness allowance which will keep on changing according to changes in consumer price index. The notification will state the basic wage only and the dearness allowance will have to be calculated by us taking in to account the type of industry and the place of working. That means, the variable dearness allowance applicable to one kind of industry, say establishment engaged in plywood manufacturing may be different from that engaged in cotton textile or hotels.

For each industry a base index would have been fixed and the DA would be an amount for each point above this base index point fixed. Accordingly, if it is notified that " Dearness allowance will have to be paid at the rate of Rs 8 for every increase in consumer price index/ cost of living index above 400 points", and the month's CPI is 750 points then the DA will be equal to Rs 2800. That is 750 minus 400 multiplied by Rs 8.

Similarly, the price index of one city will be different from another city. Therefore, CPI of city A may be 780, city B it may be 756 and so on and therefore, the DA will also differ.

Regards,

Madhu.T.K

To add.. it will be basic + DA + HRA.. then add other allowances if any.
Can you pls tell me for which city it is ??
I have the break up of Kolkata.
Thanks

It is advised to break minimum wages at 60% (basic + DA) & 40% (Allowances).
By this way no labour office will challenge you.
Regards,
Vipul Parmar

hi,
sir u cannt bifurcate to minimum wages bcoz minimum wages = basic +DA
becoz if u will bifucate the Minimum wages then PF ammt will be less which will be wrong as far as the labour Dept and Employye will gett less deduction
thnks
ashish
7838606486

Dear Sir,
Minimum Wages attract the liability of PF so you can not bifucate it except (Basic +DA), if you are bfurcating it you are boud to pay PF on all component otherwise you will be a defaulter a sper the provision of EPFO & MP Act 1952.
Thanks
Dheeraj

Normally the labour department showing daily wages & monthly wages for unskilled, semiskilled & skilled persons, which include the Basic and DA. These rates are notified every month, quarterly or half yearly as per Gazette Notification. You need not bifurcate these minimum wages.

i want to know about shop act because i have applied for shop act but i don't know what is the proceser compliance of shop act so kindly tell me about shop act compliance if you can send me notification about all compliance i will be humbel
Thank's
Dharamveer

Dear Rao,
For employment not included in the schedule, the lowest of the minimum wages applicable to the scheduled employment would apply.
With regard to bifurcation of wages, there is no such rule that if you put 60% as basic and DA and the rest, ie, 40% in other allowances, no Labour Officer could question. Yes, they can question if the sum total of the amount paid as wages is less than the sum of basic + DA as fixed by the government. If you go through the verdict by the Apex Court in Air Freight Courier and Cargo' case you will find that if the employer is paying not less than the minimum wages in total he is said to comply with the provisions of Minimum Wages Act even if the basic wage is short of what is stated as payable or if he is not paying DA but is paying it under a different head like HRA or other.
Regarding PF contribution payable on minimum wages, there is a confusion that EPF Organisation can not enforce minimum wages.

Regards,
Madhu.T.K

Dear Rao ji,
Now all the State Governments in India are given a notification that unscheduled employees minimum wages are fixed, for this you may approach to your local Labour Department and obtained the copy of G.O.
Regards,
PBS KUMAR