Basic salary meaning in maharastra minimum wages act
Pravin Bhai
(Querist) 09 March 2012
This query is : Resolved
Dear All,
As per the new maharastra minimum wages notification. Minimum wages is Basic Plus Special Allowance.
Can you tell me Basic means what?
Is basic means Basic+DA+HRA or what.
Thanks & Regards
Pravin Sharma
ajay sethi
(Expert) 09 March 2012
Section 4 of the Act mentions that Minimum wages are based on basic wages and cost of living index. The yardsticks on which minimum wage is revised are: (a) Three consumption units per earner, (b) Minimum food requirement of 2700 calories per average Indian adult, ( c ) Cloth requirement of 72 yards per annum per family, (d) Rent corresponding to the minimum area provided under the Government's Industrial Housing Scheme (e) Fuel, lighting and other miscellaneous items of expenditure to constitute 20 % of the total Minimum Wages (f) Children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. should further constitute 25% of the total Minimum Wage.
Deepak Nair
(Expert) 09 March 2012
Basic, HRA, and DA are different components of salary.
Basic means basic alone and not basic+hra+da
Guest
(Expert) 09 March 2012
There is a lot of difference between the BASIC wage and MINIMUM wages. Basic wage is the wage rate which is WITHOUT any element of other allowances/perquisites (DA, HRA and any other allowances, etc.), while minimum wage includes all allowances also on the basic wage.
Kirti Kar Tripathi
(Expert) 09 March 2012
Under Minimum Wages Act, it is responsibly of the appropriate government to fix minimum wages. As described by Ajai that Section 4 of the Act hat Minimum wages are based on basic wages and cost of living index. Thus for the purpose of Minimum Wages there two components 1st Basic Wages and another cost of living index. under the Act Basic wages are fixed on the basis of cost living index treating a particular period as base year. Once basis wages are fixed then further enhancement depends on the basis of subsequent cost of the living index, which defers time to time on the basis of commodities in the open market and decided by the Government.
Jacob Pratap
(Expert) 11 March 2012
To know what are the components of Minimum Wage, one should carefully have a look on the notification of the Government. Look under which clause of section 4 it has been fixed. Section 4 is as under:-
"4. Minimum rate of wages.- (1) Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under section 3 may consist of--
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance"); or
(ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorized; or
(iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any."
You will notice that while in clause (i) the MW is linked with VDA, under clause (iii) it is all inclusive.
Now look carefully on the GOI notification and the notification of your State Govt.
Best wishes,
Jacob Pratap
