Minimum Wage Dilemma: Should We Adjust Basic Salaries Despite Stay Order?

Dear Seniors,

I need your suggestion. Since the stay order on minimum wages will not provide any relaxation to the company, should we proceed with revising the basic salaries? Additionally, there are a few employees whose gross salary is much higher but the basic salary is lower, for example, a gross salary of 22000 but a basic of 10100. Should we also revise the basic for these employees who are overall receiving more than the minimum wage?

I require assistance at the earliest.

Regards,
Manisha Singh

Hi Manisha,

Yes, it needs to be implemented effective the same date of revision, i.e., 1st April 2017 onward. The appeal was filed by a few companies against it; however, it doesn't mean that it supersedes the order of revision.

Regards, Harpreet Walia

Thanks, Harpreet Walia,

Thank you for the prompt reply. Please help with the second part as well. What about employees who are getting more than minimum wages but the basic is less.

Hi Manisha,

The basic salary always needs to be equal to or more than the minimum wage. If it is not, then you need to revise it accordingly.

Thank you.