Can Basic and Gross Salaries Be the Same Under Minimum Wage Rules in Telangana? Seeking Compliance Advice

Please help clarify whether basic salaries and gross salaries can be the same if we consider basic salary as per minimum wages.

Telangana minimum wages are Rs. 335/day, so the total in 26 days is Rs. 8710. If I pay a basic salary of Rs. 8710, we have to pay 12% PF of that amount and 1.75% ESI. I have not paid HRA and other allowances. Is this in compliance or not? Please confirm.

Dear Sandip,

As per the Maharashtra Minimum Wages Act, 5% House Rent Allowance (HRA) is mandatory. Please ensure to verify the specific requirements under your state's Minimum Wages Act. In some states, the payment of HRA is compulsory.

Thank you.

Since you are paying full minimum wages as basic salary, you need not pay any other allowances.

R R Kapoor
Vadodara