Can Food and Accommodation Be Included in Minimum Wage Calculations? Seeking Advice from HR Experts

Hello Seniors, Please suggest if we can consider food and accommodation in the Minimum Wage Act. For example, if one state has a minimum wage for an unskilled worker of Rs. 12,000—and we hire a candidate with a monthly salary of Rs. 10,000 + food + accommodation, is this the correct way? If there is any correction, please suggest it to me.

Regards, Neeraj Kumar AM-HR

Value of food and accommodation in wage calculation

The value of food supplied and the rental value of accommodation provided shall be added to the wages for compliance purposes. However, the total amount, including food and accommodation, will qualify for statutory contributions such as ESI, PF, Bonus, Gratuity, etc.

You can't pay less than the minimum wage or bifurcate under different categories, i.e., Food & Accommodation. The payment can be with the components provided are of a fixed nature.