If basic pay is less then min. Wage rate of state, what should I consider?

If basic pay is less then min. Wage rate of state, what should I consider?

Minimum wages prescribed by the respective state, for various categories is a gross salary which can be broken into various heads like Basic, DA and other allowances. The sum of all these categories shouldn't be less than the Minimum wages prescribed. So you need not get confused. The Basic could be less than the MW, in which case the balance, the shortfall should be made up my other allowances. See for a model given below:
Minimum wages applicable, say for example Rs. 18000/- then you should have -
Basic pay Rs.10,000 (see this is less than the minimum wages)
Dearness allw. Rs. 5,000
House Rent allw. Rs. 4,000
Conveyance Rs. 1,000
Medical allw. Rs. 500 = Gross Salary Rs.20,500 which is more than minimum wages by Rs.2,500/-

I do not agree .Basic should be equal to or more than Min Wages as applicable in the state.
Have faced this problem .
Col.Suresh Rathi

Dear Mr.Suresh,
Only basic pay need not be equiavalent to minimum wages.
Even when Minimum wages are revised every half yearly by the respective state governments, the minimum wages is inclusive of Basic wages + VDA please.

Reducing of Basic Pay for reducing liability of PF contribution is not legal. Reducing Basic and DA and compensating with allowance is not fair and legal. It may attract action from PF dept as well as it may cause breach of condition No 4 of licence under Contract Labour Act issued by the Licencing officer of the Central Govt

Ssushr
If it is not legal,please send us a copy of the circular,

Dear friends,
You can only restructure allowances with mutual consent of majority of employees affected from this decision, but can not reduce Basic Pay (whereas only increase is OK). which is the basis for PF, Gratuity, Leave Encashment, Notice period. etc. Employers thinking of to make any reduction in the basic pay/salary should know regulations on this.
Read here for more details-
https://www.citehr.com/104035-reduct...reduction.html
The relevant circular of EPFO is attached.

Generally basic wage couldn't be less than minimum wage. ever please.
So ur basic pay plus VDA is combined as Minimumwage.

Some of the state govts. publish break-up of Minimum wages for various categories of skilled, semi-skilled, unskilled etc. comprised of Basic + DA/VDA. Under this arrangement, DA/VDA are revised periodically which is binding relevant firms/employers. This pattern is not common to all states for all categories. Some states publish a consolidated MW appropriate to diff.categories (if not fo rall categories.). It's safer and appropriate if Basic + DA/VDA combined taken should be not less than the emoluments followed by the employer as Basic (& DA/VDA) which are to be considered as 'Wages/ salaries' for the purposes of PF/Gratuity etc. In case of Ex-service men reengaged in civilian duties there are diff.MW published.

The following links will help you in understanding the minimum wages concept in India and comparative stats from state to state. If you wish to verify a particular state, browse the appropriate labour dept's website and download the notifications issued by the concerned from time to time. These links also provide comparative stats of MW state wise but they are not uptodate. However individual state's notification will provide the figs.for the respective years.
III
https://www.indiastat.com/labour-and...325/stats.aspx
http://labourbureaunew.gov.in/UserCo...Wages_2009.pdf
http://www.wiego.org/sites/default/f...imum_Wages.pdf.
I think you should be looking for MW for Chattisgarh and therefore I attach here MW applicable for the period 1.10.2018 to 31.3.2019 for your ready ref. Better get hold of the verbatim notification for any action reqd. thereon.