Even though the Minimum Wages Act defines "wages" as 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 travelling allowance or the value of any travelling 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;
in some States the authorities are making it compulsory that the Basic Salary defined in the Salary structure should be equivalent to the Minimum Wages declared. They claim that the employer in order to keep the PF contribution less, defines Basic salary lesser than Minimum wage declared. In such cases, they are also insisting that the salary needs to be restructured with immediate effect.
Can i have your views on the same ?