Query Regarding Minimum Wage Of Uttar Pradesh

abedeen7
Hello Every one,
Greetings of the Day!
I have a query regarding the minimum wage of Uttar Pradesh.
Are minimum wage (Basic + DA) is termed or after statutory deduction net earnings is termed as minimum wage?
So I am confused as here consult told me that the net wage after all deduction should be termed as minimum wage in the UP state.
I need clarification on this issue and your valuable posts will be appreciated.
tushar.swar
Dear Abedeen,
Not on Net salary.
Please refer The Minimum wages Act. 1948, Section No.2 (H),
(h) "wages" means all remuneration,capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment,1*[and includes house rent allowance], but does not include--(i) the value of--(a) any house-accommodation, supply of light,water, medical attendance, or (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance; (iii) any traveling allowance or the value of any traveling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge;
sumitk.saxena
Dear Abedeen,

Greetings for the day,

There is two separate point you have raised one is under the payment of wages act & other is payment of minimum wages act.

1) Payment of minimum wages explains that you can't pay any workman less than that. Secondly the basic rate can't be kept less than minimum wages which is revising time to time by the state government i.e need not to pay DA separately merge it with basic. As far as statutory deductions is concern deduction of EPF can be done through it, computation of bonus, gratuity can be done on the basis of minimum wages (basic+da).

2) As far as payment of wages is concern it is consist with the various component of salary namely HRA, Conveyance other Allowances including basic salary. Only ESIC deduction can be done on the same and leave encasement payment is done on the same.

Net payable is the payment received after deductions of various liabilities EPF,ESIC,TDS & Advances etc and it can only be possible after the finalization of salary & wages.

Thanks & Regards,

From,

Sumit Kumar Saxena
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