Understanding Minimum Wages: How Should BASIC + DA Be Calculated for Skilled Workers?

Hi Seniors, I am working for an MSME manufacturing unit, where we have staff and workers in Maharashtra. I would like to know if the minimum wages criteria are followed. Do you have to consider this minimum wages amount only in BASIC + DA? For example, if the minimum wages for skilled workers is Rs. 10,600, do we have to consider basic + DA as Rs. 10,600 and deduct PF on this amount, or consider less under BASIC + DA and adjust the balance amount in other allowances? This is because many would prefer to take home more pay presently rather than accumulating in PF.

Thanks, LISHA.

You have not clarified whether you are paying only minimum wages stipulated under the Act or paying more than the minimum wages. If you are paying only minimum wages, you have to pay EPF contribution on the same.

You will not bifurcate Basic + DA as per your convenience. It will be a breach of law.

We are paying more than the minimum wages. Also, is the same law applicable to both staff and workers?

You are paying your workers or staff more than minimum wages, but you can't bifurcate Basic + DA (Normal Earning).

Dear Srinath,

You have not clarified whether you are paying only the minimum wages stipulated under the Act or paying more than the minimum wages. We are paying more than the minimum wages. Minimum wages are applicable only to workers, or for both, i.e. staff and workers?

Thanks,

The category of employees subject to minimum wages is specified in the notification. Please verify this information in relation to your workers and staff.

Thank you.