Struggling with Delhi's New Minimum Wage Update: How Should I Respond to My HO?

Dear seniors, On the site HR, I came to know that the Delhi minimum wage is being increased from 6422 to 6656 Rs per month. After reading this, I informed my HO regarding this. Now, I received a mail from HO: "Please give me the DA amount of Delhi as the minimum wage has been increased in Delhi."

Previously, we were paying Basic - 6084 Rs + DA - 338 Rs, when the minimum wage was 6422 Rs. In the same forum where I came to know about the increased minimum wage, it was mentioned that the minimum wage is increased due to an increase in DA by 3.65%.

Now, what reply should I give to HO as I am not able to open the attachment of that forum, and the Delhi Labour Department website is showing only old rates? Please guide.

Dear Anil,

Thanks for providing detailed information. My other query is:

Previously, we were paying Basic - 6084 Rs + DA - 338 Rs when the minimum wage was 6422 Rs (monthly - for 26 days). At that time, deducting 771 Rs as employee contribution for EPF + 113 Rs for ESIC, the employee's net salary was 5538 Rs.

If we make the changes, it would be Basic - 4680 Rs + DA - 1976 Rs, and the minimum wage would be 6656 Rs (monthly - for 26 days). The employee's share for EPF would be 799 Rs + 117 Rs for ESIC. The employee will get a net salary of 5540 Rs.

Is the above calculation correct? Is our company following the right method for salary calculation? Please guide.

Regards

Dear all seniors,

Previously, the minimum wage was 6,422, and I was deducting PF based on that amount. However, the minimum wage has now increased to 6,656, and the ceiling of PF contribution is 6,500. Should I continue to deduct the PF or not? Please help me with this as soon as possible.

Thank you,

Ranjan

[Phone Number Removed For Privacy Reasons]

If the basic salary is 6500 INR, then PF deduction is not compulsory. As I mentioned in my previous post, the basic would be 4680 INR (with DA-1976) as our company follows this practice, and we are deducting 790 INR as monthly PF.