Are Our Employee Salaries Meeting Minimum Wage Standards? How Can I Check?

Dear All,

I want to find out whether the salary of employees in the organization complies with the minimum wage regulations. Can anybody inform me on how I can compare their salary with the minimum wages? I have the rates of minimum wages applicable to my zone.

Thanks & Regards,
Shweta G

Hi,

Minimum wages consist of basic pay and Dearness Allowance (DA). Therefore, if you wish to compare your salary with the minimum wages, you should consider the existing basic pay and DA and compare it with the minimum wages.

Regards,
Harshad

Can somebody please send me the updated minimum wages chart for the service industry? I am working for a courier company and would like someone to email me the minimum wages for Maharashtra.

My ID: ananaarti@gmail.com

Thanks and Regards,
Aarti

Dear Harshad,

Can we compare the minimum wages with the gross salary? Because if only basic and DA are considered, then nobody is matching the minimum wages.

Dear Arati,

Please find the rate of minimum wages for Maharashtra.

Thanks,
Shweta

Hi Shweta,

We can't compare minimum wages with gross, since gross will obviously be higher than minimum wages. Minimum wages are basically the basic salary and DA. Gross will include all other allowances like HRA, MED, CONVEYANCE, etc., which can differ from company to company. There may be other allowances under which the company will pay amounts that are part of the gross. That's why minimum wages are compared only with Basic and DA, since according to the Act, one needs to pay minimum wages as per the industry specifications. Additionally, over and above 5% HRA should be paid. The rest of the amount paid under any other heading as per the Act is not a concern. Therefore, it has to be compared with Basic and DA.

Regards,
Harshad

Hi,

I am working in an outsourcing company where we have to create a salary structure according to the client's wishes. They want to reduce their liability, such as employer contributions in PF and ESI, and aim to pay more to the employee, i.e., Net Take-Home (NTH) salary. In this scenario, they decrease the basic pay and increase the net pay. Can anybody help me with how to proceed with this?

Regards.

Hi,

Minimum wages are announced by all state governments. The government releases orders from time to time, and we follow these orders. Recently, the Pondicherry Government announced a daily wage of Rs. 80.

Regards,
T. Satchi

Hi Sweta,

Please read the paragraph below; this may help you understand the difference:

Minimum Wages: According to my knowledge, you have to pay minimum wages as per the profile and nature of the job, in accordance with the Minimum Wages Act of 1948. Otherwise, it will be considered an offense by the employer.

Minimum wages are set statewise with particular norms, including food requirements, clothing needs, housing, fuel, lighting, education for children, medical necessities, etc. It is the amount of remuneration needed for an average worker to meet their obligations.

Salary: This refers to the total worth you have to provide to an employee after job evaluation.

Regards,
Vikas Kumar

Hi Vikas & Harshad,

I am confused. When comparing the basic and special allowances with the actual basic salary and all, I still find that many organizations are not paying their employees according to the Minimum Wage. How can this be possible?

Please clarify.

Sorry Nishant, I am unable to recall the name of the website.

You are most welcome, Arati.

With lots of regards,
Shweta G

Dear Sweta,

Thank you for forwarding the valuable information. One thing I wanted to ask you is why you've added a special allowance in each class of the industry.

DHAMEJA

Dear S,

Firstly, you should have known about what wage and minimum wages are. If you want to know about correct wages, you should go to the labor department of Maharashtra.

D.K. Saini

Shweta,

It will be better if you contact the nearest Labor Office in the area so that all your queries and doubts get cleared. Our organization generally does this, which ensures that legal compliances are maintained.

Regards,
Nishant

Hi all,

Thank you so much for your reply and help. Sorry, Arati, I am not able to find the charts for Gujarat, Goa, and MP, but I will make sure to provide them to you. Please give me some time.

Shweta G

I really appreciate your efforts and willingness to help me. And shall wait :-)

Warm Regards, Aarti

Hi Arati,

Please check the following link. You will get your desired information.

http://www.paycheck.in/main/officialminimumwages

All the best.

Thanks & Regards,
Shweta G

Hi Shweta,

I have checked the site, but it shows me details only till March '06. Should I assume that the minimum wages have not been revised after March for states like Gujarat, MP, etc.?

Warm Regards,
Aarti

Mr. Venkat,

In Pondicherry, the government announced that the minimum wage is Rs. 80/-. Please see the attached Circular copy.

Calculating Minimum Wages in Karnataka

To determine the minimum wages in Karnataka per day, you can calculate the total amount and divide it by either 30 days or 26 days. The result will give you the minimum wage per day. Can anyone provide an answer to this question?