Hi friends, I need a quick clarification. Even when the salaries are well above the minimum wage (say 5 or 8 lakhs), is there a need to ensure that the basic pay is fixed as per the minimum wages? Please help.
No, but it is always fine if you keep the basic salary equal to the statutory minimum wages. Obviously, in the absence of DA in your salary structure, it would be good if you keep the total of basic wages and DA in the minimum wages notification as the basic wages under your salary structure.
Yes, I acknowledge Mr. Madhu's response. It is always better to maintain the basic equal to the minimum wage, though it is not mandatory as decided by many courts.
Government makes such stipulations because an industry should not fix wages lower than the minimum wage. However, it is also beneficial for industries to pay more than the statutory limit set by the government.
If your salary levels are at 5 lakhs per year for an employee, the basic will definitely be more than the amount specified in the minimum wages notification; therefore, you are compliant with the law. I hope you are not planning to put the basic at 10,000 when the salary is 50,000.
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