Is Our Salary Structure Legal? Navigating Minimum Wage and PF Compliance in Maharashtra

bajiklehr

Hi,

As per the notification from the labor office (DA), the minimum wage in Maharashtra for unskilled labor is basic 3600 + DA 3927 = 7527 + 5% HRA 376 = 7903.

My question is, if we are paying a gross salary of more than the minimum wage, i.e., Rs. 10,000, but to save on PF costs, we are showing basic + DA = 7000, HRA 2800, Team Allowance 200.

I need your advice on whether this salary structure complies with the Minimum Wages Act.

Regards,
Bajirao

Shrikant_pra

It is not illegal as of now, but it is immoral for sure. Just check how little you will actually save. After all, you are curtailing the retirement benefits of the unskilled worker. Think and then make a decision.

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