Dear All Kindly tell me the minimum wages in Gujarat state and how to calculate it? Basic + DA. And It is calculate on basis of CTC, Gross, or Net.It is required urgently, kindly help. Thanks Tarun
From India, Ahmadabad
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1From India, Ahmadabad
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There is a basic mistake in the Paycheck's calculation of minimum wages. They have stated VDA of different industries and states, but they have not stated what the base indices are used as bases for the calculation of variable DAs. For instance, if the VDA for employees of Shops and Commercial Establishments in Kerala is shown as Rs 24.90, that is fixed and added to the basic to decide the daily minimum rate of wage. This is incorrect. The VDA is linked to the consumer price index, and for employees of shops and establishments, the VDA is Rs 24.90 for every point of consumer price index over and above 130 points. Therefore, if the CPI of Cochin is 185, then the points which earn DA is 55 (185-130), and the employees of shops and establishments in Cochin will get a VDA for every point increase in CPI above 130; that means the VDA will be Rs 1369.50 per month. The VDA of other places may not be the same; for instance, the CPI of Trivandrum is 196, so the VDA of employees in that district will be Rs 1643.40 (196-130 X 24.90).
According to the calculation of Paycheck, the VDA remains fixed (how is it Variable?) and is the same for all districts. As per their calculation, the least of the minimum wages for shop employees is Rs 4374.50, but it is not correct. Their basic rate of minimum wage is correct, whereas DA calculation shall not be taken on record.
Regards,
Madhu.T.K
From India, Kannur
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According to the calculation of Paycheck, the VDA remains fixed (how is it Variable?) and is the same for all districts. As per their calculation, the least of the minimum wages for shop employees is Rs 4374.50, but it is not correct. Their basic rate of minimum wage is correct, whereas DA calculation shall not be taken on record.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu,
If an employer is paying a gross salary much more than the minimum wages to the employees, however, the basic salary is less than the minimum wages and DA as a component is not part of the salary breakup. Please let me know if, in such a scenario, there is any violation of the Minimum Wages Act.
Regards,
Amit
From India, Delhi
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If an employer is paying a gross salary much more than the minimum wages to the employees, however, the basic salary is less than the minimum wages and DA as a component is not part of the salary breakup. Please let me know if, in such a scenario, there is any violation of the Minimum Wages Act.
Regards,
Amit
From India, Delhi
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I would like to refer Airfreight India Ltd Vs. State of Karnataka, in which the Supreme Court had said that the total salary is taken as remuneration paid or payable to a worker so that he and his family can sustain. Therefore, the competent authority (the Labour Department) is not expected to bifurcate each element of the minimum wages. That means if the total salary paid is more than the minimum wages, the company is said to comply with the requirements of the Act even though the basic salary is less than the rate fixed as per the minimum wages notification and no dearness allowance is paid apart from the total salary.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Special Allowance under Minimum Wages Act-1.1.2016 - 30.6.2016.pdf
SELF-CERTIFICAT E PROFORMA UNNDER THE MINIMUM WAGES ACT, 1948.doc