Is This Salary Structure Compliant with the T.N. Minimum Wages Act? Seeking Advice

Dear all,

As per the notification from the T.N. Government regarding the Minimum Wages Act of 1948, is the following salary structure acceptable or not?

- BASIC - 50%
- HRA - 40%
- TRANSPORT - 1600
- WASHING - 1000
- MEDICAL - 1250
- OTHERS - Balance payment

Please advise if any corrections are necessary.

Thank you,
Sathish Kumar M.

Dear Sathish, To my knowledge, the minimum wages fixed by the Government of Tamil Nadu for various scheduled employments comprise only two components, namely Basic and Dearness Allowance, linked to the specific Cost of Living Index specified in the Government Order.

If your industry wage structure comprises several components like the ones mentioned in your post, first, you must ensure that none of these components fall into the excluded items from the definition of "wages" under section 2(h) of the Minimum Wages Act, 1948. Therefore, conduct a critical analysis of the components other than the mentioned basic and HRA.

Second, you must ensure that the sum total of your industry wages, excluding the excluded components, does not fall short of the sum total of the minimum wages fixed by the Government at any time due to the periodic increase in the cost of living index prescribed.