Minimum wages act

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 February 2012 Hi My query is whenever minimum wages act for Maharashtra comes it is with Basic and special allowance(DA). So my question is , is it mandatory to give DA also along with basic. If company only gives basic amount as per minimum wages act and dont give DA since the employees is working in office only so is it ok or we will have to give both BASIC & DA?

19 February 2012 In Government Sector, Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc.

But in private sector, there is no such law, where DA is mandatory. Since as i stated earlier , in private sector there is no such law of DA, so u can bifurcate minimum wages in BASIC and HRA.
opinions are invited

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Querist : Anonymous

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19 February 2012 Thanks for the reply
I need more clarification like suppose in minimum wages it is given basic 5400 and DA 1000 so it is ok if company will pay only 5400 and not DA as employee is working in full time office.

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Querist : Anonymous

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19 February 2012 Hi Please reply

20 February 2012 As per the definition under Minimum wages Act - 1948, - Wages means all remuneration capable of being expressed in terms of money, which would be payable to a person employed in respect of his employment or work done in his employment and includes HOUSE RENT ALLOWANCE (w.e.f. 17/09/1957) but does not include - Gratuity, PF/ESI contribution, travelling allowance or concession, value of any facility or service extended to the employee.
Technically minimum wages can be split into: BASIC +DA+HRA.
But as a general practice it is understood as: Basic +DA.

The enforcement authorities under Minimum Wages are concerned only that the prevailing min. wages should be paid to an employee., The employer can pay the min. wages through any nomeclature as a head of wages, but it should not be less than existing min. wages in the respective State.
Moreover; There is nothing in Labour Laws, that Basic or Basic+ DA should be at par the minimum wages or 50% of the Gross salary, these are all the industrial practices.

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Querist : Anonymous

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20 February 2012
thanks sumat
As per the example given above i minimum wages it is always given basic 5400 & DA 1000 so my querry is the gross salary should be 5400 or 6400 if company is not give DA then what gross salary should be?

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20 February 2012 please reply

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