Are We at Risk of Penalties for Our Salary Structure in Maharashtra? Let's Discuss!

Salary Compliance with Minimum Wages in Maharashtra

We want to inform you that we are paying a salary higher than the minimum wages, but the Basic + D.A. is lower than the minimum wages set by Maharashtra for clerical level and all other administrative staff. For example, we pay a salary of 10,500/- to clerks, but the Basic + D.A. is 6,600/-, with other allowances like HRA, CCA, Washing Allowance, etc., totaling 3,900/-.

Wages for Workers and Technical Staff

For workers and technical staff, we pay salaries according to the minimum wages for unskilled, semiskilled, and skilled categories, based on Basic + D.A. as we have merged D.A. into Basic and pay only the basic amount (D.A. Merged).

Would the shop inspector or their office take action? As you are aware, the minimum wages in Maharashtra are:
- Unskilled: 8,893 (Basic + D.A. + HRA)
- Semiskilled: 9,309
- Skilled: 9,832/-

In this scenario, where the Basic + D.A. component of the salary is below the minimum wages set by Maharashtra for clerical and administrative staff, there is a risk of non-compliance with labor laws. The shop inspector or their office may take action if they discover this discrepancy during an inspection or investigation. To rectify this situation and ensure compliance, it is advisable to review the salary structure and adjust the Basic + D.A. component to meet or exceed the minimum wages mandated by Maharashtra for each staff category. This adjustment should be made promptly to avoid any penalties or legal consequences. It is crucial to align the salary structure with the applicable minimum wage rates to adhere to labor regulations and maintain a fair and lawful employment environment.