We are an electrical contractor working on various types of projects in industries, residential, and commercial buildings throughout Karnataka. We would like to know the minimum wage required for each zone to pay our employees. Your suggestions would be greatly appreciated.
Currently, we are paying the below breakup for 2022, which is slightly different from the present. If we make any changes in the employee's pay, could there be any legal issues? Please advise.
Existing:
- BASIC: 8450
- DA: 4830
- HRA: 770
- FIXED SAL: 14050
New:
- BASIC: 7280
- DA: 3145
- HRA: 4200
- FIXED SAL: 14625
From India , Bangalore
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1Currently, we are paying the below breakup for 2022, which is slightly different from the present. If we make any changes in the employee's pay, could there be any legal issues? Please advise.
Existing:
- BASIC: 8450
- DA: 4830
- HRA: 770
- FIXED SAL: 14050
New:
- BASIC: 7280
- DA: 3145
- HRA: 4200
- FIXED SAL: 14625
From India , Bangalore
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If there is a complaint by any of the workers, the authorities will disallow it and may initiate prosecution against the company.
Under most of the labor laws, you aren't allowed to reduce statutory dues by restructuring the salary. You can do it if there is a genuine reason. For example, the authorities may accept (but unlikely) that the HRA needs to increase as you cannot even get a basic home.
I suggest that you take care of the new structure by changing it at the time of increment. During that time, you can slowly increase HRA until the ratios are stabilized.
From India, Mumbai
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Under most of the labor laws, you aren't allowed to reduce statutory dues by restructuring the salary. You can do it if there is a genuine reason. For example, the authorities may accept (but unlikely) that the HRA needs to increase as you cannot even get a basic home.
I suggest that you take care of the new structure by changing it at the time of increment. During that time, you can slowly increase HRA until the ratios are stabilized.
From India, Mumbai
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Minimum Wage of UP & UK.pdf