Dear Team, Can we make the below the structure of minimum wage for fresh workman
For example minimum wage is 10000/-
Basic 6000
HRA 2400
Con 1600
As HRA is not a part of wages, and no case law or guidance where we can't split minimum wages
even in the Air frieght case it was considered that all components of wages are minimum wages and there is no need to pay VDA if wages is more than minimum wage
in one Decision Haryana court also gave such a decision where there was no dispute to split the minimum wage
keeping in view
as per PF wages - we can deduct the contribution on Basic + Con
for ESI contribution Basic + HRA
request for your valuable guidance
Pls, help me also to mention case law in support of my reply.
From India
For example minimum wage is 10000/-
Basic 6000
HRA 2400
Con 1600
As HRA is not a part of wages, and no case law or guidance where we can't split minimum wages
even in the Air frieght case it was considered that all components of wages are minimum wages and there is no need to pay VDA if wages is more than minimum wage
in one Decision Haryana court also gave such a decision where there was no dispute to split the minimum wage
keeping in view
as per PF wages - we can deduct the contribution on Basic + Con
for ESI contribution Basic + HRA
request for your valuable guidance
Pls, help me also to mention case law in support of my reply.
From India
In Airfrieght India Vs State of Karnataka, the Supreme Court has said that so long as the total wages paid is more than the minimum wages fixed by the government, whatever components the employer makes in wages is acceptable. It is not necessary that the wages should have a component called variable Dearness Allowance. But if such cases for all purposes, like for deciding contribution to PF, calculation of Bonus, Gratuity etc, also the same whole salary should be taken as wages. It should not be like for compliance with regard to you can take the allowances and total wages and for statutory payments you can take only the basic wages.
From India, Kannur
4293From India, Kannur
You can not split the minimum wages in different components than the notified wages ₹10000/-.
The Basic wages shall remain ₹10000/-.The company can pay other allowances above the wages but for all the purposes of EPF, ESI, E C & F&F calculation Basic wage is 10000/-.The unscrupulous employer do the change in format to have monetary gain taking the benefits of ignorance of the work force. Mind it the basic+DA+VDA should be equal or more than the minimum rate of wages.
From India, Mumbai
The Basic wages shall remain ₹10000/-.The company can pay other allowances above the wages but for all the purposes of EPF, ESI, E C & F&F calculation Basic wage is 10000/-.The unscrupulous employer do the change in format to have monetary gain taking the benefits of ignorance of the work force. Mind it the basic+DA+VDA should be equal or more than the minimum rate of wages.
From India, Mumbai
The entire Minimum wage prescribed for the position should be considered under monthly fixed Basic if there is no DA component part of the salary structure. The Basic will be considered for the statutory benefits calculation like PF, Gratuity and Leave Encashment.
From India, Bengaluru
From India, Bengaluru
As we know, every state govt.periodically notifies schedule of minimum wages applicable in various sectors/industry. For e.g. the website of Govt.of Karnataka publishes the minimum wages split into Basic, DA/VDA etc which can be seen in this link > https://karmikaspandana.karnataka.gov.in/info-4/Minimum+Wages+Notification/Minimum+Wages+rates+for+the+Year+2024-25/en.(pl.check in respective govt's web sites appropriately for guidance).
Going by this notification(s) the quantum is specified industry wise, under different heads and therefore these stipulations should be adhered to. May be an employer is free to pay their employees more than the specified amounts.
From India, Bangalore
Going by this notification(s) the quantum is specified industry wise, under different heads and therefore these stipulations should be adhered to. May be an employer is free to pay their employees more than the specified amounts.
From India, Bangalore
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
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