The important thing to remember is, one cannot deprive an employee of the minimum benefits that he should receive under the provisions of Minimum Wages Act. If under the law the minimum basic and special DA is "X", one cannot reduce it to "X minus "Y" by splitting the wages in to different heads like VDA "Fixed DA"etc. In many organisations "Fixed DA" is given to the employees which is a part of VDA. This is done by separating thef VDA up to a particular index point. As long as there is no difference between "minimum wage due" and "Minimum wage paid", one should have no worries.
As regards the "rationalisation allowance" it is difficult to say for what this is being paid as it is specific to the organisation where you are working. You should get this information from the organisation.
The term minimum wage has been defined under the Act and allowances which will be part of minimum wage has also been defined. The compliance should strictly be on that basis.
9th May 2010 From India , Nagpur
I would like to inform you that I am continue follower you and your views and agreed with every views but here i am not agree with you that Under the minimum wages act 1948 sec. 2 (h) "wages" means 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,
1*[and includes house rent allowanc]
So please specifies that Minimum wages means Basic + HRA or only Basic
If minimum wages means Basic+HRA then we can split the basic wages
4th February 2014 From India, Delhi