Hi Friends, need a quick clarification. Even where the salaries are well above minimum wages(say 5 or 8 lakhs) , is there a need to ensure Basic is fixed as per the Minimum Wages? Please help.
From India, Bengaluru
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From India, Bengaluru
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No, but it is always fine if you keep the basic salary equal to the statutory minimum wages. Obviously, in the absence of DA in your salary structure, it would be good if you keep the total of basic wages and DA in the minimum wages notification as the basic wages under your salary structure.
From India, Kannur
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4758From India, Kannur
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Yes. I acknowledge Mr. Madhu’s response. It is always better to maintain the basic equal to the MW though it is not mandatory as decided by many courts. Regards,
From India, Madras
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From India, Madras
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Government makes such stipulation because an industry should not fix wages, lower than minimum wages. But it is also good for industries to award more than the statutory limit fixed by Government.
From India, Aizawl
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From India, Aizawl
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If your salary levels are at 5 lakhs per year for an employee, the basic will definitely be more than the amount specified in the minimum wages notification; therefore, you are compliant with the law. I hope you are not planning to put the basic at 10,000 when the salary is 50,000.
From India, Mumbai
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From India, Mumbai
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