Understanding Minimum Wage Zones for Electrical Contractors in Karnataka: What Should We Pay Our Employees?

Minimum Wage Inquiry for Electrical Contractors in Karnataka

We are an electrical contractor working on various types of projects in industries, residential, and commercial buildings throughout Karnataka. We would like to know the minimum wage required for each zone to pay our employees. Your suggestions would be greatly appreciated.

Current and Proposed Salary Structure

Currently, we are paying the below breakup for 2022, which is slightly different from the present. If we make any changes in the employee's pay, could there be any legal issues? Please advise.

Existing:
- BASIC: 8450
- DA: 4830
- HRA: 770
- FIXED SAL: 14050

New:
- BASIC: 7280
- DA: 3145
- HRA: 4200
- FIXED SAL: 14625

If there is a complaint by any of the workers, the authorities will disallow it and may initiate prosecution against the company.

Statutory Dues and Salary Restructuring

Under most labor laws, you aren't allowed to reduce statutory dues by restructuring the salary. You can do it if there is a genuine reason. For example, the authorities may accept (but unlikely) that the HRA needs to increase as you cannot even get a basic home.

Suggestions for Salary Structure Adjustment

I suggest that you take care of the new structure by changing it at the time of increment. During that time, you can slowly increase HRA until the ratios are stabilized.