Minimum Wages Compliance in Rajasthan
In Rajasthan, effective from May 1, 2012, minimum wages cannot be split into allowances. We can only have two parts: Basic and DA, that's it. Both PF, Bonus, and Gratuity are applicable. Therefore, we must deduct PF on 3822 for 26 days; there is no other way. If this procedure is not followed, the Labor Department will enforce compliance, and we will need to pay the balance from May 1, 2012. It is advisable to consult your legal advisor and ensure that the minimum basic wage is set at 3850.