Can anyone help me: Minimum wages is equivalent to gross or basic salary

Can anyone help me?

Minimum wage is equivalent to gross or basic salary. Kindly help me prepare the salary structure.

Dear All,

Kindly advise me if the minimum wage is equal to the basic salary or the gross salary.

Thank you.

Dear Kushboo,

The sum total of the gross industry wages minus those of the excluded items mentioned under Section 2(h) of the Minimum Wages Act, 1948 should be equal to the sum total of the statutory minimum wages.

Hi,

Minimum wages, basic salary, and gross salary are all different. Normally, the term "wages" is used for laborers, not for employees.

Dear colleague,

The minimum wages under the Act consist of Basic and Special Allowance (Dearness Allowance). Therefore, they are not considered gross wages.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

Seniors, thank you so much for your valuable feedback.

As per new code on wages:

Section 7. (1) Any minimum rate of wages fixed or revised by the appropriate Government
under section 8 may consist of––
(a) a basic rate of wages and an allowance at a rate to be adjusted, at such
intervals and in such manner as the appropriate Government may direct, to accord as
nearly as practicable with the variation in the cost of living index number applicable to
such workers (hereinafter referred to as "cost of living allowance"); or
(b) a basic rate of wages with or without the cost of living allowance, and the
cash value of the concessions in respect of supplies of essential commodities at
concession rates, where so authorised; or
(c) an all-inclusive rate allowing for the basic rate, the cost of living allowance
and the cash value of the concessions, if any.
Therefore, the Minimum wages is equivalent to basic salary.

As per the present definition of Minimum wages, it includes Basic, DA (Special Allowance wherever applicable), and HRA. Different States are publishing Minimum wages as Basic and DA in most cases. There are States where HRA, as per State Act, is applicable.

According to the New Wage Code, it includes only Basic and DA. HRA has not been considered. In both the above cases, many organizations are considering only Basic as Minimum wages, but it should not be less than the published Minimum wages of the States.

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions

Friends, who are referring to Section 4 of the Minimum Wages Act 1948, stating Basic Rate of Wages + DA. Can anyone confirm what is the definition of "Basic Rate of Wages"? Does it mean "Your Basic Salary"? If it is Basic Salary, what is relevant to give a "Wage Definition" under section 2(h)?

Yes, it is agreed that Minimum Wages = Basic is good to have. But is it mandatory? That is the question.