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Minimum wages act maharashtra - unskilled labour

Dear Experts:

Ours is a organisationw 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

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1 Replies

darshana sawant (associate consultant) 25 March 2013

dear Linette There is no law governing the break up of the salary so far as it is beyond the minimum wages. You can also follow the structure referred by you, so long as you keep adding the special allowance which govt of maharashtra declares every 6 months. which schedule of employment are you following. Just ensure it is the minimum wage for the particular category of employment. The ESI and PF will be payable on basic plus DA.