Dear Sir, I want to know that can I make breakup in minimum wage like Basic, Hra, E.p.f., ESIC. If we can, then what is the minimum percentage of Basic pay.
From India, Delhi
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2From India, Delhi
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This is a debatable issue; there have been several discussion threads on this in the past. Please use the RESEARCH option/button and study them. It is advisable not to further dissect the paltry minimum wages but to advise management to think beyond it; to the concept of Fair Wages, Living Wages, etc., unless your company wants to just meet the minimum standard laid down by law. When companies seek the best-qualified manpower, best performance, etc., why can they not think beyond Minimum Wages for their workers?
Warm regards.
From India, Delhi
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Warm regards.
From India, Delhi
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Dear Gautam,
The split of minimum wages is not permissible because the minimum wage is a component of Basic + DA. Therefore, how should the basic be subdivided into other basics?
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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The split of minimum wages is not permissible because the minimum wage is a component of Basic + DA. Therefore, how should the basic be subdivided into other basics?
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Understanding Minimum Wage Components
Minimum wages consist of Basic + Special Allowance (DA), which is payable to a worker. The contractor may add other components like the cost of a uniform, transport, canteen, bonus, PF with administration charges, insurance/ESIC, etc., and make it a Cost to Company (CTC) concept. However, all these additional charges are payable by the company to the contractor and hence do not interfere with minimum wages.
In Maharashtra, you need to pay House Rent Allowance (HRA) at 5% of Basic under the Maharashtra HRA Act.
Regards
From India, Mumbai
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Minimum wages consist of Basic + Special Allowance (DA), which is payable to a worker. The contractor may add other components like the cost of a uniform, transport, canteen, bonus, PF with administration charges, insurance/ESIC, etc., and make it a Cost to Company (CTC) concept. However, all these additional charges are payable by the company to the contractor and hence do not interfere with minimum wages.
In Maharashtra, you need to pay House Rent Allowance (HRA) at 5% of Basic under the Maharashtra HRA Act.
Regards
From India, Mumbai
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There are various components taken into consideration while deciding the Minimum Wages. Basic wages and Minimum wages are not synonyms. Minimum Wage is to ensure a dignified life for a worker, whereas Basic Wages provide a scale on which other allowances/benefits are to be ascertained. There are approximately 40 labor-related enactments relevant for this purpose. Since every enactment has a specified objective, it has a different parameter or definition of wages.
I agree with Mr. Raj Kumar in this regard, especially when the HR Department is not regarded as a profit center. Why should we make efforts to reduce the benefits of the workers that cost a minuscule percentage of the total expenditure of a company? Our aim should be procuring contentment among the workforce by providing an additional advantage. The importance of the worker has to be realized now before it is too late.
From India, Jaipur
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I agree with Mr. Raj Kumar in this regard, especially when the HR Department is not regarded as a profit center. Why should we make efforts to reduce the benefits of the workers that cost a minuscule percentage of the total expenditure of a company? Our aim should be procuring contentment among the workforce by providing an additional advantage. The importance of the worker has to be realized now before it is too late.
From India, Jaipur
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It appears that the issue of whether an employer can split minimum wages is still pending before the Supreme Court in a case. You can await the decision and keep track of it. In the meantime, it is advisable not to split it.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Minimum Wages Act & Rules Wage Slip Form No.XI-Rule (26(2.) .pdf