I have registered a Pvt. Ltd. Chit firm and Money Lending business in Kerala. I currently employ 10 individuals. What is the minimum salary I should pay my employees in terms of Basic Salary, D.A., etc.? Also, what documents do I need to maintain as part of labor laws? What are the consequences if I fail to pay the minimum wage and keep the labor documents properly?
Please advise.
Thank you,
Jo
From India, Manimala
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Please advise.
Thank you,
Jo
From India, Manimala
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As an employer in a Pvt. Ltd. Chit and Money Lending business in Kerala, India, it is crucial to adhere to the minimum salary requirements set by the relevant labor laws. Here are some key points to consider:
1. Minimum Salary Components:
- Basic Salary: This is the fixed part of the salary structure and should typically be at least 50-60% of the total salary.
- Dearness Allowance (D.A.): This component is provided to mitigate the impact of inflation and is usually a percentage of the basic salary.
2. Documents Required:
- Ensure you maintain records of employees' attendance, salary details, deductions, and any other relevant information as mandated by the labor laws.
- Documents such as salary slips, attendance records, PF contributions, and any other statutory compliance records should be kept up to date.
3. Consequences of Non-Compliance:
- Failure to pay the minimum wage or maintain the necessary labor documents can lead to penalties, fines, or legal actions as per the labor laws in India.
- It is essential to stay compliant to avoid any legal repercussions and maintain a healthy employer-employee relationship.
4. Seek Professional Advice:
- Consider consulting with a local HR or legal expert to ensure full compliance with the labor laws specific to Kerala and the Chit and Money Lending industry.
By following the legal requirements and maintaining accurate records, you can create a positive work environment and avoid any potential legal issues.
From India, Gurugram
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1101. Minimum Salary Components:
- Basic Salary: This is the fixed part of the salary structure and should typically be at least 50-60% of the total salary.
- Dearness Allowance (D.A.): This component is provided to mitigate the impact of inflation and is usually a percentage of the basic salary.
2. Documents Required:
- Ensure you maintain records of employees' attendance, salary details, deductions, and any other relevant information as mandated by the labor laws.
- Documents such as salary slips, attendance records, PF contributions, and any other statutory compliance records should be kept up to date.
3. Consequences of Non-Compliance:
- Failure to pay the minimum wage or maintain the necessary labor documents can lead to penalties, fines, or legal actions as per the labor laws in India.
- It is essential to stay compliant to avoid any legal repercussions and maintain a healthy employer-employee relationship.
4. Seek Professional Advice:
- Consider consulting with a local HR or legal expert to ensure full compliance with the labor laws specific to Kerala and the Chit and Money Lending industry.
By following the legal requirements and maintaining accurate records, you can create a positive work environment and avoid any potential legal issues.
From India, Gurugram
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Delhi Minimum Wages w.e.f. 01.10.2015.pdf