Hello HR Professionals,
I need some guidance regarding the industry classification and minimum wage determination for our company. Our primary business involves providing services in major component replacement for wind turbines and acting as an EPC (Engineering, Procurement, and Construction) contractor for solar power plants.
Industry Classification: Under which industry category does our business fall? Is it classified under renewable energy, construction, or another category?
Minimum Wage Determination: How do we determine the minimum wage for our industry, considering that our head office is in Tamil Nadu but we operate across various states in India?
Any insights or references to relevant laws and guidelines would be greatly appreciated.
Thank you!
From India, Chennai
I need some guidance regarding the industry classification and minimum wage determination for our company. Our primary business involves providing services in major component replacement for wind turbines and acting as an EPC (Engineering, Procurement, and Construction) contractor for solar power plants.
Industry Classification: Under which industry category does our business fall? Is it classified under renewable energy, construction, or another category?
Minimum Wage Determination: How do we determine the minimum wage for our industry, considering that our head office is in Tamil Nadu but we operate across various states in India?
Any insights or references to relevant laws and guidelines would be greatly appreciated.
Thank you!
From India, Chennai
Minimum Wages should be paid as per location where the employee is employed, and for that, it is the state minimum wages that has to be followed. Therefore, the wages of your employees deployed in different states will vary. It is obvious that depending upon the cost of living of the locality the wages should also change.
The applicable minimum wages will depend upon the schedule under which the industry is put, and the same also will be different in different states. I don't think that there is any schedule called renewable energy. Since you are in to installation of electrical panels, solar panels etc, you have to check and see which is the function that best suites your kind of functions. If you do not find any activity connected with your area of operations, you can follow the notification issued for either Engineering industries or Construction industry. Under engineering industry you can find minimum wages applicable to fitters, welders, electricians etc, and accordingly, fix the wages of employees
From India, Kannur
4219The applicable minimum wages will depend upon the schedule under which the industry is put, and the same also will be different in different states. I don't think that there is any schedule called renewable energy. Since you are in to installation of electrical panels, solar panels etc, you have to check and see which is the function that best suites your kind of functions. If you do not find any activity connected with your area of operations, you can follow the notification issued for either Engineering industries or Construction industry. Under engineering industry you can find minimum wages applicable to fitters, welders, electricians etc, and accordingly, fix the wages of employees
From India, Kannur
Dear Vignesh,
In most cases, I think your work comes under Engineering, but please read the relevant notification of the state government for minimum wages. Please note that if 2 industries apply, the Labour Commissioner generally tends to take the higher one.
If a person is permanently deployed at a particular state, then use the Minimum wages of that state. remember to pay PT, LWF, etc also in that state.
However, if you have people travelling to various places, then use the base location of the employee.
You may initiate a process of paying additional amount for working on per day basis in states with higher Min Wages or Cost of Living index.
From India, Mumbai
In most cases, I think your work comes under Engineering, but please read the relevant notification of the state government for minimum wages. Please note that if 2 industries apply, the Labour Commissioner generally tends to take the higher one.
If a person is permanently deployed at a particular state, then use the Minimum wages of that state. remember to pay PT, LWF, etc also in that state.
However, if you have people travelling to various places, then use the base location of the employee.
You may initiate a process of paying additional amount for working on per day basis in states with higher Min Wages or Cost of Living index.
From India, Mumbai
Dear Vignesh,
As per your posting, EPC work falls under construction category. In view of the above, you need to pay the notified rate of waged of the state,where the project likely to be start. Further, central rate of wages will be applicable to Central Govt, PSU and Union territory. d
From India, Mumbai
As per your posting, EPC work falls under construction category. In view of the above, you need to pay the notified rate of waged of the state,where the project likely to be start. Further, central rate of wages will be applicable to Central Govt, PSU and Union territory. d
From India, Mumbai
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