Confused About Setting Employee Salaries? How to Navigate Minimum Wages and DRA Points

I hope you're doing well! Now, my question is: How do we fix the salaries for employees? I know this depends on the Minimum Wages Act, but the governments of the states are providing points about DRA. However, I am unable to understand that. Please guide me on how to convert these points into salaries.

Please provide your contact details so I can call you back to discuss the same topic. Kindly guide me.

Thank you.

Regards

Regular Positions

The appropriate manager/supervisor, in concert with Human Resources, will determine rates of pay for new employees under the terms of this policy. New employees are normally hired at the minimum of the pay band allocated to the position. The candidate's salary offer may be within the pay band when the individual's experience and qualifications are compared to internal equity considerations and the position requirements. In extraordinary circumstances, a vice-president may permit Human Resources to hire a candidate beyond the midpoint and/or maximum of the pay band. These situations will be documented and placed in the employee’s file.

Compensation Determination

Compensation is not only decided by the Minimum Wages Act but also influenced by the prevailing supply and demand ratios in your industry. You can use the minimum wages as the basic component and build others on top of that, adding special allowances, bonuses, etc.

Using Market Comparisons

Specifically for you, use the Minimum Wages Act as the baseline and compare CVs from the market for the applicable median plus or minus 15% or 20%. Then, use one of the salary calculators to design a CTC package.

Hope this helps.

Understanding Salary Rates and Minimum Wage Regulations

The company is free to set the salary rates for employees. It is not directly linked to the minimum wage regulations. However, the company cannot pay wages or salaries below the Minimum Wages Act.

The states usually announce new minimum wages every six months through a notification. This notification includes the wage rates for each type of work (sector/industry group) and level of skill (unskilled, skilled, semi-skilled, etc.).

What might be causing confusion is the way the wages are notified. In many cases, the wages were set by the board quite some time ago. The rates do not change frequently since each adjustment involves a significant process, including thorough study and data analysis.

Instead of changing the rates, they adjust the wage rates upwards to account for inflation. The notified wages consist of two parts - Basic and DA. The Basic amount remains constant (it has remained the same for the past four years), while the DA is adjusted based on the Consumer Price Index.

The increase in DA is indicated by points in the notification. What is crucial for most individuals is the total wage amount, which will be in the third or fourth column.

The key focus should be to ensure that your Basic + DA is not lower than the amount specified in the notification. The best approach is to align the Basic + DA exactly with the notification for those receiving minimum wages only.

I hope this explanation helps clarify the wage notification process.

Regards.

Perhaps I am not clear on what your actual problem is. If you can explain that, I will try to give you the answer. A lot of details on this are provided in [Dearness allowance - Wikipedia, the free encyclopedia](http://en.wikipedia.org/wiki/Dearness_allowance) and more links from that page (if you are looking at things like how exactly the numbers are arrived at...).