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Frequently Asked Questions

A curated and categorised database of common questions regarding the law.

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11 Where Basic and DA are declared separately, do the wages have to be split up into Basic and DA ?

The minimum rate of wages fixed under the Act is remuneration payable to the worker as a gross amount, Neither There is no provision of the Act providing that the rate of minimum wages is to be split into basic wages and cost of living allowance even where these are declared separately in the notifications
12 Where Basic and DA are declared separately, do the wages have to be split up into Basic and DA ?

The minimum rate of wages fixed under the Act is remuneration payable to the worker as a gross amount, Neither There is no provision of the Act providing that the rate of minimum wages is to be split into basic wages and cost of living allowance even where these are declared separately in the notifications
13 Are the employees covered by the Act entitled to overtime wages?

Any employee covered who works for more than the prescribed number of hours in any day is entitled to wages at double the ordinary rate of wages.
14 Are the employees covered by the Act entitled to overtime wages?

Any employee covered who works for more than the prescribed number of hours in any day is entitled to wages at double the ordinary rate of wages.
15 How frequently is the minimum wages updated?

There is no prescribed or fixed frequency for revision of Minimum Wages. Earlier,revisions would be infrequent (between 1 and 3 years) but now, the centre and most states revise the minimum wages at least twice a year.
16 How frequently is the minimum wages updated?

There is no prescribed or fixed frequency for revision of Minimum Wages. Earlier,revisions would be infrequent (between 1 and 3 years) but now, the centre and most states revise the minimum wages at least twice a year.
17 What happens if minimum wgae is updated retrospectively ?

Employees need to be paid arrears of minimum wages if their wages were below the revised minimum wage
18 What happens if minimum wgae is updated retrospectively ?

Employees need to be paid arrears of minimum wages if their wages were below the revised minimum wage
19 We have our head office in State A and our employees are based at client sites in State B. Which states minimum wages would apply ?

Minimum Wages have to be paid as per the rate of the State in which the site is situated. If the site belongs to an industry where the Central Government is the appropriate government, then central minimum wages have to be paid.
20 We have our head office in State A and our employees are based at client sites in State B. Which states minimum wages would apply ?

Minimum Wages have to be paid as per the rate of the State in which the site is situated. If the site belongs to an industry where the Central Government is the appropriate government, then central minimum wages have to be paid.
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