In the case of employees whose minimum wages have been notified by the company, the gross wages should not be less than the sum total of the basic wages and dearness allowances as per that notification. If, for example, the basic wage is Rs 7000 and the Variable Dearness Allowance is Rs 3000, then the total wages is Rs 10000. You can decide your own basic pay, even without an element called dearness allowance but the total o basic and such other allowances should not be less than Rs 10000.
Under such circumstances, you have to consider the above gross salary,ie, Rs 10000, for calculating his bonus, retrenchment compensation, gratuity, leave encahment or payment of contribution to Provident Fund.
Normally the notification will tell you how to treat the daily wages for monthly payment.It can be either by multiplying the daily wages by 26 or 30. Normally the monthly wages will be given. This is divided by 26 to arrive at daily rate. This is done to accommodate payment for weekly off day.