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 labour / employee, is getting Rs. 13008/- rupees including P.F contribution from the employer. However, the state government has announced Rs. 450/- per day wage for unskilled labour. 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
Please provide clarity.
Thank you.
From India, Bhubaneswar
The minimum wages notified by the government is the minimum wages below that no employer shall pay the workers in a particular category. It should be gross wages excluding employer's contribution to ESI, EPF and other contributions payable by the employer. But 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 he is employed for 26 days, then it shall be 450X 26 or Rs 11700 and not 450 X 30 or Rs 13500.
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 you cannot reduce it to the notified wages.
For compliance, please see if the daily wages arrived at by dividing the monthly wages (WITHOUT ESI and PF of the Employer) by 26 is equal to or more than Rs 450.
From India, Kannur
4238At 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 you cannot reduce it to the notified wages.
For compliance, please see if the daily wages arrived at by dividing the monthly wages (WITHOUT ESI and PF of the Employer) by 26 is equal to or more than Rs 450.
From India, Kannur
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