Minimum Wages Act Confusion: Does It Cover Private Employees and How to Calculate?

Understanding the Minimum Wages Act

Kindly help me to understand the Minimum Wages Act.

1. Is it applicable only to workers or also to employees of private companies?

2. Are Basic + DA wages the only components considered as minimum wage? For example, if Basic + DA minimum wages = 9000, but in the salary breakup, the Basic + DA = 4000 and special allowance = 8000, totaling 12000. If the CTC amount exceeds the Basic + DA minimum wages, how should the salary breakup be prepared? Which is the correct approach?

Your responses will help me clarify my doubts. Thank you.

Once your establishment is enlisted in the list of scheduled employments, the appropriate government will notify the minimum rates of wages for employees as per the definition of the employee under the Minimum Wages Act, 1948. As per the definition of the employee, supervisors and managers are not covered under this definition, and accordingly, you will not find fixation of minimum rates of wages for such employees. We do not find the definition of a worker under this Act. For the fixation of minimum rates of wages of employees, you are to go through the minimum rates of notification of the government.

Regards, R N KHOLA