How Can a Non-Profit Transition from Consolidated Pay to Basic Salary and Benefits?

A society registered under the Andhra Pradesh Societies Act as a non-profit organization is running a shelter and clinic for animal welfare. They have been paying consolidated pay for 15 years. Now, how can they divide it into basic salary, VDA, and other statutory benefits? What will be the basic salary, DA, and other benefits as per the Andhra Pradesh Shops and Establishment Act.

Dear Saiera, with the hazy inputs given in the post, it is very difficult to give a clear-cut answer to your query.

Employee Positions and Wages

What are the posts held by the employees in the organization? What are their respective consolidated wages per month?

Minimum Wages Act Compliance

What are the post-wise basic and current D.A fixed under the Minimum Wages Act, 1948 for Shops and Establishments by the A.P Government? If the consolidated wages fall below the sum total of the MW, how do you intend to bring it up so that there would be no disparity between them in the future?

Dear Saiera,

You have stated that "A society registered under the Andhra Pradesh Societies Act as a non-profit organization and running a shelter and clinic for animal welfare."

Is the AP Shops & Commercial Establishments Act applicable to a non-profit organization already registered under the AP Societies Act?

Dear Saiera, you can apportion consolidated wages into basic pay, DA, and other allowances. You may look into the minimum wages notification issued by the AP Govt. for guidance. To help you further, more data like the present wages are needed. Being a nonprofit organization would not exempt you from labor laws. The registration under the Societies Registration Act is different in scope from the registration required under the Shop & Establishment Act. Both are necessary and must be complied with.