Kindly tell me the minimum wages in Gujarat state and how to calculate it - Basic + DA. Is it calculated based on CTC, Gross, or Net? This information is required urgently. Your help is greatly appreciated.
If an employer is paying a gross salary much more than the minimum wages to the employees, however, the basic salary is less than the minimum wages and DA as a component is not part of the salary breakup, please let me know if, in such a scenario, there is any violation of the Minimum Wages Act.
I would like to refer to Airfreight India Ltd Vs. State of Karnataka, in which the Supreme Court stated that the total salary is considered as the remuneration paid or payable to a worker so that he and his family can sustain themselves. Therefore, the competent authority (the Labour Department) is not expected to bifurcate each element of the minimum wages. This means that if the total salary paid is more than the minimum wages, the company is said to comply with the requirements of the Act, even though the basic salary is less than the rate fixed as per the minimum wages notification and no dearness allowance is paid apart from the total salary.
Regards,
Madhu.T.K
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