Minimum Wages in Bihar
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Bihar State Government announced minimum employee wages, which will take effect on October 1st, 2023. This announcement defines the lowest compensation companies are legally required to give their workers for services rendered.
Changes in the minimum compensation apply to employees at all skill levels and industrial facilities in the state. So, Bihar minimum wages apply to the scheduled employee categories like skilled, semi-skilled, and unskilled workers. In this article, you will get a comprehensive breakdown of the minimum wages in Bihar with salary calculation examples.
First, you need to understand the breakdown of Bihar minimum wages.
Understanding the Revised Minimum Wages for Bihar
If you observe closely, Bihar minimum wages for 2023 include a category of supervisory or clerical employees, which is beyond the usual classification that other states in India follow.
Minimum Wages of Bihar, effective from 01.10.2023
| Sr No. | Class of Employment | Basic Per Day | Basic Per Month | VDA Per Day | VDA Per Month | Total Per Day | Total Per Month |
|---|---|---|---|---|---|---|---|
| 1 | Unskilled | ₹388 | ₹10,088 | ₹7 | ₹182 | ₹395 | ₹10,270 |
| 2 | Semi Skilled | ₹403 | ₹10,478 | ₹8 | ₹208 | ₹411 | ₹10,486 |
| 3 | Skilled | ₹491 | ₹12,466 | ₹9 | ₹234 | ₹500 | ₹13,000 |
| 4 | Highly Skilled | ₹600 | ₹15,600 | ₹11 | ₹286 | ₹611 | ₹15,586 |
| 5 | Highly Skilled | ₹419 | ₹11,107 | ₹24.19 | ₹8.07 | ₹210 | ₹11,768 |
Based on the above minimum wages in Bihar, you can calculate salary depending upon the employee category.
Salary Calculations for Minimum Wage in Bihar of Unskilled Labour
| CTC | ₹6,00,000 |
| Minimum Wages | ₹10,270 |
| Basic Salary Structure | |||
|---|---|---|---|
| Sr No. | Components | Formula | |
| 1 | Allowance | Basic + DA | ₹25,000 |
| HRA | ₹12,000 | ||
| LTA | ₹1,250 | ||
| SP | ₹11,250 | ||
| Gross Salary | ₹50,000 | ||
| 2 | Ad-hoc Allowance | Monthly Bonus | ₹4,150 |
| 3 | Contribution | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹3 | ||
| 4 | Deduction | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹15 | ||
| PF Admin Charge | ₹150 | ||
| PT | ₹150 | ||
| Salary in Hand | ₹46,082 | ||
| Copy this BASIC + DA value to perform the Salary Structure Calculation | |||
| Calculated Basic + DA | ₹25,000 | ||
Salary Calculations for Minimum Wage in Bihar of Semi Skilled Labour
| CTC | ₹6,00,000 |
| Minimum Wages | ₹10,686 |
| Basic Salary Structure | |||
|---|---|---|---|
| Sr No. | Components | Formula | |
| 1 | Allowance | Basic + DA | ₹25,000 |
| HRA | ₹12,000 | ||
| LTA | ₹1,250 | ||
| SP | ₹11,250 | ||
| Gross Salary | ₹50,000 | ||
| 2 | Ad-hoc Allowance | Monthly Bonus | ₹4,150 |
| 3 | Contribution | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹3 | ||
| 4 | Deduction | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹15 | ||
| PF Admin Charge | ₹150 | ||
| PT | ₹150 | ||
| Salary in Hand | ₹46,082 | ||
| Copy this BASIC + DA value to perform the Salary Structure Calculation | |||
| Calculated Basic + DA | ₹25,000 | ||
Salary Calculations for Minimum Wage in Bihar of Skilled Labour
| CTC | ₹6,00,000 |
| Minimum Wages | ₹13,000 |
| Basic Salary Structure | |||
|---|---|---|---|
| Sr No. | Components | Formula | |
| 1 | Allowance | Basic + DA | ₹25,000 |
| HRA | ₹12,000 | ||
| LTA | ₹1,250 | ||
| SP | ₹11,250 | ||
| Gross Salary | ₹50,000 | ||
| 2 | Ad-hoc Allowance | Monthly Bonus | ₹4,150 |
| 3 | Contribution | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹3 | ||
| 4 | Deduction | Employee PF | ₹1,800 |
| Employee ESI | ₹0 | ||
| LWF Employee | ₹15 | ||
| PF Admin Charge | ₹150 | ||
| PT | ₹150 | ||
| Salary in Hand | ₹46,082 | ||
| Copy this BASIC + DA value to perform the Salary Structure Calculation | |||
| Calculated Basic + DA | ₹25,000 | ||
Similarly, you can use the same salary structure for highly skilled and clerical employees. The only difference is a change in minimum wages among these categories of employees.
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Conclusion
Bihar’s minimum wage policy is crucial to equitable remuneration and better working standards. You should cultivate a compassionate work environment and embrace changes in government policies for better compliance. Focus on transparent communication and prompt issue resolution, and ensure fair remuneration to avoid penalties due to non-compliance with the Minimum Wages Act.
Source: https://labourlawreporter.com/
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