My query is whether the minimum revised wage rate duly announced by the state government is also applicable for the employees who are in the payrolls of an organization. For example, as per the payroll structure, suppose an employee is engaged in a certain grade which is equivalent to the unskilled labor/employee, and is getting Rs. 13,008/- including P.F. contribution from the employer. However, the state government has announced Rs. 450/- per day wage for unskilled labor. Then, is it necessary to revise the salary of the employee to Rs. 450 * 30 (average days per month in a calendar year) = Rs. 13,500/-?
Please provide clarity.
Thank you.
From India, Bhubaneswar
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Please provide clarity.
Thank you.
From India, Bhubaneswar
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The minimum wages notified by the government is the minimum wage below which no employer shall pay the workers in a particular category. It should be gross wages excluding the employer's contribution to ESI, EPF, and other contributions payable by the employer. However, if the daily rate of wages is fixed at Rs 450 per day, the same shall be multiplied by the number of days the employee is employed. If they are employed for 26 days, then it shall be 450 x 26, amounting to Rs 11,700, and not 450 x 30, which would be Rs 13,500.
At the same time, if you are paying more than the minimum wages notified by the government, then you should continue to pay the higher amount and cannot reduce it to the notified wages.
For compliance, please verify if the daily wages arrived at by dividing the monthly wages (WITHOUT ESI and PF of the Employer) by 26 are equal to or more than Rs 450.
From India, Kannur
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4483At the same time, if you are paying more than the minimum wages notified by the government, then you should continue to pay the higher amount and cannot reduce it to the notified wages.
For compliance, please verify if the daily wages arrived at by dividing the monthly wages (WITHOUT ESI and PF of the Employer) by 26 are equal to or more than Rs 450.
From India, Kannur
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Government hikes minimum wage for agriculture labourer.doc
Minimum Wage of UP & UK.pdf