Dear Ms Soniya-Choudhary,
Welcome to the “Sharing & Learning” forum of Cite HR.
Instead of adding your query in a running discussion, ideally you should put the query with “Start A New Discussion” in which you can properly mentioned subject as well.
Your client (govt company) is absolutely right. You should pay the Basic Salary as per the applicable Minimum Wages. Splitting of Basic (less than Minimum Wages) is not allowed.
You have to pay the PF-ESI and other statutory obligations at least on the Minimum Wages. The Minimum Wages is paid for 26 days (being exclusive of W/off in the month). If any person do duty on Weekly Off or other OT, same has to be paid @ twice rate.
Through the comment it seems your client comes under “Central Govt”, hence insisting to pay Rs. 546 (Area B). Pls check if it is correct, than OK otherwise you are liable to pay UP State Govt Minimum Wages only (which are far lesser than Central Govt.).
The Minimum Wages will be your Gross Wages from which after deducting PF-ESI, LWF, PT you can have Net Salary.
I am attaching both notifications which are applicable wef Oct’21 (UP Govt. and Central Govt).
Hope this will help you to take better decision.