What all components are included while calculating Minimum wages? As per my understanding and as per Minimum wages act, we need to include cash components as given to an employee which means Basic+DA+Allowances except Travel allowance +HRA but most of us in private sector use Basic + DA ...need further clarity through dicussion over this topic from knowledgable board members.
From India, New Delhi
From India, New Delhi
10. What are the yardsticks on which minimum wage revisions are based ?
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
From India, Delhi
86Section 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
From India, Delhi
Dear Swapnil,
Wages as defined in minimum wages is all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, includes house rent allowance but does not include--the value of--any house-accommodation, supply of light, water, medical attendance, or any other amenity or any service excluded by general or special order of the appropriate Government; any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance; any traveling allowance or the value of any traveling concession; any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or any gratuity payable on discharge; Keeping in view of the above Basic, DA, HRA are components which falls within the definition.
From India, Delhi
Wages as defined in minimum wages is all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, includes house rent allowance but does not include--the value of--any house-accommodation, supply of light, water, medical attendance, or any other amenity or any service excluded by general or special order of the appropriate Government; any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance; any traveling allowance or the value of any traveling concession; any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or any gratuity payable on discharge; Keeping in view of the above Basic, DA, HRA are components which falls within the definition.
From India, Delhi
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