Min wages act - salary designing

Guest (Querist) 25 March 2013 This query is : Resolved
Dear Experts:

Ours is a organisation with 50 employees. We are planning a third party contract for 2 office boys. Now I need clarity on designing their salary with the third party vendor. I need clarity on the following:

Is it necessary to have their Basic as Rs.5000/-?

I guess the DA varies and its compulsory to pay DA based on the Min Wages Act which currently is Rs.1076/- However is it necessary to pay HRA which I am told is 5% of Basic + DA.

Can I not design the salary keeping the basic amount as 4637+ DA as 1076 + HRA which is 5% of both which is 285/- therefore their gross salary would be 5998.65/- per month.

I request you all to please guide me on the above asap.

Regards,

Linette

Follow Query

Report Abuse

Adv k . mahesh (Expert) 25 March 2013
yes you can go for the third party contract

Raj Kumar Makkad (Expert) 26 March 2013
As the salary is to be paid by contractor to those boys, you need not to design the salary rather leave it upon the contractor. You need to ensure only payment of minimum wages as per State rules.

H.M.Patnaik (Expert) 08 March 2016
COMPLIANCE OF PROVISIONS LAID DOWN UNDER THE
M.W.ACT 7 RULES OF THE STATE NEED TO BE ENSURED IN CASE OF THIRD PARTY CONTRACT FOR OUTSOURCING OF WORKMEN.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries