Is There a Legal Minimum for Basic Salary in Bangalore? Seeking HR Insights

Dear all,

I am Chandrakant, working as an HR professional in Bangalore. Today, one of my employees called me and asked why his basic salary is less when it should be 1800. He insists that as per employee laws, the basic salary should not be less than 2300. Is this true? I tried searching for information on this in the employee laws, but I couldn't find any details. Could you please let me know if there are any laws specifying a minimum amount for the basic salary?

I look forward to receiving your valuable feedback.

Chandrakant

Hi,

As far as I know, the minimum basic is not prescribed statutorily. However, Basic plus DA must not be less than the Minimum Wage applicable to the work as per the given schedule. Ideally, Basic should be 30-40% of the gross. Keeping the basic too low would deprive the employee of better terminal benefits.

Regards, RSrikanth

Hello,

Yes, there is a law about minimum wages. Below that, you can't provide the basic salary, and it keeps on changing from time to time. Say, after every six months, it changes. For that, you have to speak to your labor lawyer about the minimum wage because it varies from state to state. As far as Haryana is concerned, the minimum basic wages have been revised, and from July, these are Rs. 3510 for unskilled labor. Your employee told you the right thing; please take it seriously; otherwise, your company can be in trouble.

Regards, Vijeta

There is no law that defines the quantum of basics. All legal requirements on minimum wages and the definition of wages normally include Basic plus DA, and there are few other allowances that are constituted as part of wages from the Minimum Wages Act perspective.

PGS

Hi Chandrakant,

You need to check the Minimum Wages Act, 1948 to find your solution. Being a central legislation, it is applicable to all the states of India.

Secondly, in which industry are you? Accordingly, you need to check under which category - skilled, semi-skilled, or unskilled - the concern is covered.

As far as minimum basic wages are concerned, there is no such act governing the minimum basic wages.

Regards,
Prasad

Dear Chandrakant,

I also feel that your employee is drawing a lower salary. Please refer to the Minimum Wages Act and obtain the Minimum Wages circular gazette from the Labour Commissioner's office. Check which skill category your employee falls under. Provide details of the basic wages applicable to your industry, along with the special allowance applicable to your industry and his skill level.

Advise your employer to comply with and ensure that minimum wages are given to employees.

Regards,
Bhushan Dahanukar
Navi Mumbai

Dear Mr. Chadrakant,

At the beginning of the financial year, i.e., in the month of April, the State Government will revise the Basic & DA, which will be published in the Government Gazette or it can be obtained from the local labor office. However, Basic & DA varies from companies to companies.

It is mandatory that all employees are covered under minimum wages as per the last revision. Please take up this issue with your management; otherwise, you will be facing a penalty as well as having to pay with arrears.

Satish