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.
From India, Ahmedabad
Acknowledge(0)
Amend(0)
1Suppose, 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.
From India, Ahmedabad
Acknowledge(0)Amend(0)
Hi It is advisable to maintain the Basic wages not lesser than the prescribed Minimum wages
From India, Bangalore
Acknowledge(1)Amend(0)
From India, Bangalore
Acknowledge(1)Amend(0)
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.
From India, Mumbai
Acknowledge(0)Amend(0)
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.
From India, Mumbai
Acknowledge(0)Amend(0)
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.
From India, Hyderabad
Acknowledge(0)Amend(0)
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.
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Minimum wages- Basic.pdf