Is It Legal for Basic Salary to Fall Below Minimum Wages? Seeking Your Insights

Hello, Can basic salary be less than the minimum wages?

Suppose, as per the Gujarat Minimum Wages Act, a skilled employee should get Rs. 14,220 per month.

So, if an employee has a CTC of Rs. 20,500 and his basic + DA is Rs. 10,000.

Is that legal? Or do we need to keep basic + DA as per the minimum wages act?

Kindly provide your valuable opinion.

Thank you.

Hi, It is advisable to maintain the basic wages not lower than the prescribed minimum wages.

Minimum Wages and Basic Salary

The basic salary should not be less than the notified rate of minimum wages. It is the right of the workman to claim minimum wages. They should complain before the authority if denied by the employer.

HR's Responsibility

Furthermore, it is the responsibility of HR to ensure that workmen receive legitimate wages as per statute. Failure to do so shall be treated as a malfunction of HR.

Any worker's salary should not be less than the wages fixed or revised by the concerned state. Every state labor department revises the variable dearness allowance according to the raised CPI points every six months, i.e., two times a year.

In the above example, a skilled worker in Gujarat is getting a total wage salary of Rs 14,420. If that salary is less than the wage fixed by the state government, then it is incorrect unless there is no issue.

Please ensure that basic wages are at least equal to or greater than the prescribed minimum wages. They should not be less than the minimum wages set by law.