Dear seniors, kindly guide me on the minimum wage rise:
As per the Gujarat state government, the minimum wage rises twice a year (every 6 months). In my organization, we do increments once a year. So, as per the act, the minimum wage rises twice a year.
For example:
If I have a fixed basic salary of 5000/-, within 6 months a wage rise will be declared, and then again I have to raise the basic salary. Wherein, if I adjust the amount from the CTC, then his/her in-hand salary will reduce by some amount. Kindly note that I am not giving D.A. What is the solution for the same? Kindly guide me, please...
Regards
From India, Jaipur
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4As per the Gujarat state government, the minimum wage rises twice a year (every 6 months). In my organization, we do increments once a year. So, as per the act, the minimum wage rises twice a year.
For example:
If I have a fixed basic salary of 5000/-, within 6 months a wage rise will be declared, and then again I have to raise the basic salary. Wherein, if I adjust the amount from the CTC, then his/her in-hand salary will reduce by some amount. Kindly note that I am not giving D.A. What is the solution for the same? Kindly guide me, please...
Regards
From India, Jaipur
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If you are paying above minimum wages, then increments once a year are not a problem as long as you do not drop below the minimum wage levels during the year (such as when the division in the minimum rate takes place).
However, if you are paying minimum wages only, then you need to increase the basic salary (and in effect, the total salary) every time there is a change in the rates.
From India, Mumbai
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However, if you are paying minimum wages only, then you need to increase the basic salary (and in effect, the total salary) every time there is a change in the rates.
From India, Mumbai
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Salary Components Breakdown
Here, I am providing a breakdown of the salary components:
- Basic + HRA + Travel Allowance + Washing Allowance = Gross
- Gross - PF - PT - Other deductions = Take-home pay
If I increase the Basic salary from 5500/- to 5800/- due to minimum wage requirements, the PF contribution will also increase, leading to a rise in CTC (PF contributions from both employees and employer).
I seek guidance on how to proceed in this scenario. Thank you for your assistance.
Regards
From India, Jaipur
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Here, I am providing a breakdown of the salary components:
- Basic + HRA + Travel Allowance + Washing Allowance = Gross
- Gross - PF - PT - Other deductions = Take-home pay
If I increase the Basic salary from 5500/- to 5800/- due to minimum wage requirements, the PF contribution will also increase, leading to a rise in CTC (PF contributions from both employees and employer).
I seek guidance on how to proceed in this scenario. Thank you for your assistance.
Regards
From India, Jaipur
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