Dear All,
Kindly help me in calculating revised minimum wages. Is it 14842 or 14806? If we are paying a gross salary of 15k, do we need to increase the basic salary or not? For example, currently, we are paying basic-14k, Special allowance-1k, and gross=15k. If we increase the basic salary to 14842, special allowance to 158, and gross remains 15k, do we have to pay arrears or not? If yes, how should we pay them? Also, which components come under minimum wages?
Thank you.
From India, New Delhi
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Kindly help me in calculating revised minimum wages. Is it 14842 or 14806? If we are paying a gross salary of 15k, do we need to increase the basic salary or not? For example, currently, we are paying basic-14k, Special allowance-1k, and gross=15k. If we increase the basic salary to 14842, special allowance to 158, and gross remains 15k, do we have to pay arrears or not? If yes, how should we pay them? Also, which components come under minimum wages?
Thank you.
From India, New Delhi
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So long as the salary that you pay is higher than the Basic and DA as notified by the government for minimum wages, you are said to comply with the requirements of the law. Therefore, if you have been paying Rs 15,000 with a breakup applicable to your organization only, you can continue to pay like that. The question of basic and DA as per minimum wages notification comes when there is a dispute regarding the payment of gratuity. Normally, you will take the Basic salary for the calculation of Gratuity. But in respect of employment to which minimum wages have been notified, it should be that minimum wages, implying basic and DA, that should be taken as the base for gratuity calculation.
This will apply in other cases as well, like bonus calculation, encashment of leave, etc.
From India, Kannur
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4483This will apply in other cases as well, like bonus calculation, encashment of leave, etc.
From India, Kannur
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