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ABIR GANGOLY (President-Business Development)     11 December 2009

Minimum Wages

Is it true that in a salary structure, Basic should be more than  / equal to the minimum wages? A company has a fixed gross salary comprising of Basic, HRA, Books & Periodicals and Deputation Allowance. The gross salary is fixed and all components are fixed.... then can basic be less than minimum wages where gross is more than minimum wages? Kindly justify with documentary proof.

Thanks & Regards



Learning

 2 Replies

V. VASUDEVAN (LEGAL COUNSEL)     12 December 2009

Although the consolidate salary structure satisfies the minimum wages criteria, according to the employer's point of view, it is imperative the break up of dearness allowance (known as special allowance in Mah. and the HRA is provided. Otherwise, how else the employer substantiate that the salary structure comprise the dearness/special allowance ( which is prescribed by notification(s) issued by the appropriate State Government from time to time). Also a structure may contain allowances to take care of reimbursement of certain expenses viz. telephone, conveyance, incentives, etc.). Also in the event of retrenchment, strikes retaining allowance etc., the basic pay and other structures are to be distinguishable. In case you need a specific judgement, please do revert with the nature of your establishment and location. Vasudevan

Sunil Agarkar (Consultant and Advocate)     12 December 2009

your question is small but requires thick book to reply.

management has right to design its own salary structure.

following simple rules can be applicable

1 your wages are not linked with MW.

2 benefits, reimbursements and role specific allowances are not part of minimum wages.


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