Hi , Pls advise that if minimum wages changes then whether it will be affected for existing workers as well? Rgds
From India, Gandhinagar
From India, Gandhinagar
Dear Chandrasekar,
I infer that what you actually mean is whether the change in minimum rates of wages already fixed would be applicable to the existing employees.
Fixation of minimum rates of wages for any employment brought into its schedule is the first exercise under the Minimum Wages Act, 1948. Such rates become applicable to the existing employees in the scheduled employment effective from the date of notification. The same rates also apply to those employees who join later.
Changes in the minimum wages subsequently occur - one is periodical change in the dearness allowance linked to the Cost of Living Index according to the rise in its points, and the other one is due to the revision of the rates of minimum wages once every five years.
Therefore, such changes in the quantum of statutory minimum wages have no distinction as to existing employees and future employees. At times, changes become retrospective also, as a result of which arrears have to be paid to all those in employment on the effective date.
From India, Salem
6108I infer that what you actually mean is whether the change in minimum rates of wages already fixed would be applicable to the existing employees.
Fixation of minimum rates of wages for any employment brought into its schedule is the first exercise under the Minimum Wages Act, 1948. Such rates become applicable to the existing employees in the scheduled employment effective from the date of notification. The same rates also apply to those employees who join later.
Changes in the minimum wages subsequently occur - one is periodical change in the dearness allowance linked to the Cost of Living Index according to the rise in its points, and the other one is due to the revision of the rates of minimum wages once every five years.
Therefore, such changes in the quantum of statutory minimum wages have no distinction as to existing employees and future employees. At times, changes become retrospective also, as a result of which arrears have to be paid to all those in employment on the effective date.
From India, Salem
Dear Umakanthan Sir,
What I feel our friend CS Chandrasekar wants to ask is when an employee is earning a salary higher than the minimum wage as prescribed, and there is a revision in the rate, is it necessary to adjust the salary of such an employee.
CS Chandrasekar ji, you are requested to bring clarity to your question.
From India, Mumbai
What I feel our friend CS Chandrasekar wants to ask is when an employee is earning a salary higher than the minimum wage as prescribed, and there is a revision in the rate, is it necessary to adjust the salary of such an employee.
CS Chandrasekar ji, you are requested to bring clarity to your question.
From India, Mumbai
Dear Akhil,
If that's the actual question, as you know, the poster need not bother as long as his industry wages remain on par with the statutory minimum wages. To ensure this, those components in the industry wage structure which are excluded from the definition of wages should not be taken into account while determining the parity. As of now, a reconsideration of the so-called parity is absolutely required, as the Code on Wages, 2019 is likely to come into force. In my opinion, unnecessary breaking up of components introduced in the industry wage structure would not serve the intended purpose of reducing employers' indirect financial commitments as the definition of the term wages found in the Code on Wages, 2019 provides for automatic absorption of the excess of the sum of those components other than basic, D.A., and retaining allowance into the wages when their proportion exceeds 50% of the gross.
From India, Salem
If that's the actual question, as you know, the poster need not bother as long as his industry wages remain on par with the statutory minimum wages. To ensure this, those components in the industry wage structure which are excluded from the definition of wages should not be taken into account while determining the parity. As of now, a reconsideration of the so-called parity is absolutely required, as the Code on Wages, 2019 is likely to come into force. In my opinion, unnecessary breaking up of components introduced in the industry wage structure would not serve the intended purpose of reducing employers' indirect financial commitments as the definition of the term wages found in the Code on Wages, 2019 provides for automatic absorption of the excess of the sum of those components other than basic, D.A., and retaining allowance into the wages when their proportion exceeds 50% of the gross.
From India, Salem
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.