Dear All,
It is being informed that the Government of Haryana has issued a notification, a copy of which is attached, in line with its press note released in print media a few days back, thereby putting to rest all speculations regarding the proposed increase in the minimum rate of wages. Through this notification, certain additional conditions have also been imposed upon the employers for the very first time, and a few conditions of the previous notification have been amended. A brief detail of the fresh conditions enforced and its surrounding impact is mentioned below.
- The entire minimum rate of wages has been described as the basic rate (basic pay) of the minimum wage, and it has been specifically expressed in the notification that the minimum rate will not be subject to bifurcation into different allowances. Thus, the State Government has converted the minimum wage equivalent to basic pay. This has been attempted to dissuade the employers from bifurcating the minimum wages into basic pay and allowances, as well as to trim down the impact of the judgment pronounced by the Honorable Punjab & Haryana High Court in the case of Assistant Provident Fund Commissioner Versus GS Security Services (India) Ltd. It will add up the liability of employers wherever the employers have bifurcated/segregated the minimum rate of wages into various allowances. The employers will be under statutory obligation to deduct and deposit provident fund from the validity of the notification on the total minimum rate of wages unless such a condition is quashed by the courts. Similarly, the employers will also be burdened with additional liability to pay gratuity on this new rate of minimum wage since the definition of wage prescribed under the Payment Of Gratuity Act, 1972 is pari-materia to the definition of basic pay prescribed under the EPF & MP Act, 1952. On the other hand, the term "wage" as defined under minimum wage includes allowance in its terminology. It may lead to indifferent prepositions and confusions.
- Per day earnings will be calculated by dividing monthly wages by the factor of 26 days, whereas the deductions regarding absence, etc., will have to be calculated by dividing the monthly wages by the factor of 30 days. This will lead to a different set of calculations for preparing earned wages. The benefit of leave, overtime, holiday, etc., will be paid by calculating the same over the factor of 26 days.
- Automatic revision in salary from unskilled category to semi-skilled category by the afflux of time earlier fixed at ten years has been reduced to five years. Therefore, all the employees working in the unskilled category within scheduled employment for five years or more duration, their salary will have to be upgraded to the salary paid to Semi-Skilled-A category. However, the employers will not yet be at liberty to take semi-skilled nature of work from such employees despite paying a salary equivalent to said trade. Employees having experience in Semi-Skilled A category for three years will have to be paid the salary of Semi-Skilled B category. Likewise, employees having experience of working in Skilled-A category for three years will be paid the salary benefit of skilled B category thereafter.
- For such employees whose nature of work has not been described in the schedule employment, they will have to be paid the minimum wages fixed for a similar category having similar skills as so notified.
- The period of training has been fixed as not greater than one year of duration. However, under the Minimum Wage Act, 1948, as per its objectives, only the issues pertaining to the settlement of remuneration of workers can be determined. This Act has been enacted to provide a periodical revision of wages. This Act does not confer power on the State Government to fix the conditions of engagement of a particular classification of employment, which squarely falls under the purview of the Industrial Employment Standing Order Act, 1946.
With the above discussions, the current minimum rate of wage revised by the government is mentioned for your ready reference, circular enclosed for the reference.
The aforementioned minimum rate of wage has been made effective from 1st November 2015 in the State of Haryana.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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280It is being informed that the Government of Haryana has issued a notification, a copy of which is attached, in line with its press note released in print media a few days back, thereby putting to rest all speculations regarding the proposed increase in the minimum rate of wages. Through this notification, certain additional conditions have also been imposed upon the employers for the very first time, and a few conditions of the previous notification have been amended. A brief detail of the fresh conditions enforced and its surrounding impact is mentioned below.
- The entire minimum rate of wages has been described as the basic rate (basic pay) of the minimum wage, and it has been specifically expressed in the notification that the minimum rate will not be subject to bifurcation into different allowances. Thus, the State Government has converted the minimum wage equivalent to basic pay. This has been attempted to dissuade the employers from bifurcating the minimum wages into basic pay and allowances, as well as to trim down the impact of the judgment pronounced by the Honorable Punjab & Haryana High Court in the case of Assistant Provident Fund Commissioner Versus GS Security Services (India) Ltd. It will add up the liability of employers wherever the employers have bifurcated/segregated the minimum rate of wages into various allowances. The employers will be under statutory obligation to deduct and deposit provident fund from the validity of the notification on the total minimum rate of wages unless such a condition is quashed by the courts. Similarly, the employers will also be burdened with additional liability to pay gratuity on this new rate of minimum wage since the definition of wage prescribed under the Payment Of Gratuity Act, 1972 is pari-materia to the definition of basic pay prescribed under the EPF & MP Act, 1952. On the other hand, the term "wage" as defined under minimum wage includes allowance in its terminology. It may lead to indifferent prepositions and confusions.
- Per day earnings will be calculated by dividing monthly wages by the factor of 26 days, whereas the deductions regarding absence, etc., will have to be calculated by dividing the monthly wages by the factor of 30 days. This will lead to a different set of calculations for preparing earned wages. The benefit of leave, overtime, holiday, etc., will be paid by calculating the same over the factor of 26 days.
- Automatic revision in salary from unskilled category to semi-skilled category by the afflux of time earlier fixed at ten years has been reduced to five years. Therefore, all the employees working in the unskilled category within scheduled employment for five years or more duration, their salary will have to be upgraded to the salary paid to Semi-Skilled-A category. However, the employers will not yet be at liberty to take semi-skilled nature of work from such employees despite paying a salary equivalent to said trade. Employees having experience in Semi-Skilled A category for three years will have to be paid the salary of Semi-Skilled B category. Likewise, employees having experience of working in Skilled-A category for three years will be paid the salary benefit of skilled B category thereafter.
- For such employees whose nature of work has not been described in the schedule employment, they will have to be paid the minimum wages fixed for a similar category having similar skills as so notified.
- The period of training has been fixed as not greater than one year of duration. However, under the Minimum Wage Act, 1948, as per its objectives, only the issues pertaining to the settlement of remuneration of workers can be determined. This Act has been enacted to provide a periodical revision of wages. This Act does not confer power on the State Government to fix the conditions of engagement of a particular classification of employment, which squarely falls under the purview of the Industrial Employment Standing Order Act, 1946.
With the above discussions, the current minimum rate of wage revised by the government is mentioned for your ready reference, circular enclosed for the reference.
The aforementioned minimum rate of wage has been made effective from 1st November 2015 in the State of Haryana.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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forgot to enclose the attachment plese find the same. thanks & regards, from sumit kumar saxena
From India, Ghaziabad
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From India, Ghaziabad
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This notification is now challenged before Punjab & Haryana High Court.
Safai Karamchari's main wage is ₹8100/-. Bifurcation of Allowance, the MW Act does not interfere with the Contract of Employment, Benefits of promotions prescribed, limiting of training to one year, 100% neutralization, etc., are some of the points challenged.
From India, Delhi
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Safai Karamchari's main wage is ₹8100/-. Bifurcation of Allowance, the MW Act does not interfere with the Contract of Employment, Benefits of promotions prescribed, limiting of training to one year, 100% neutralization, etc., are some of the points challenged.
From India, Delhi
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Dear Sumit Kumar Saxena Ji,
Thank you for the useful information. I have a query regarding the enclosed notification (for Minimum wages as basic wages) as it does not bear the signature of any authorized Government officer. Is this acceptable? Please clarify.
Thank you.
From India, undefined
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Thank you for the useful information. I have a query regarding the enclosed notification (for Minimum wages as basic wages) as it does not bear the signature of any authorized Government officer. Is this acceptable? Please clarify.
Thank you.
From India, undefined
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Haryana Minimum Wages -W.E.F 01-07-2015.pdf
Minimum wages haryana.jpg