Retrospective corrigendum on Minimum Wages issued by the Central Government. Principal Employers are responsible for compliance with past period wages, wherein Contractors have completed the work and settled their accounts with the company (PE).
From India, Calcutta
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From India, Calcutta
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Legally and morally, when the minimum wages have been enhanced with retrospective effect, they have to be implemented from that date. However, in most cases, payments made are not reviewed, and revised wages are applied only prospectively. This cannot be taken casually, and in the event of an inspection of the records where this discrepancy is noticed, there could be penalties and prosecution for non-observance of the mandatory provisions in the Minimum Wages Act of 1948.
From India, Mumbai
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1593From India, Mumbai
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Your views are appropriate. However, in one case, the Punjab Government revised wages retrospectively, and the Honorable Punjab and Haryana court has temporarily stopped the order. Since then, the state has not revised minimum wages.
From India, Calcutta
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From India, Calcutta
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I request all to contribute on the discussion to have better understanding.
From India, Calcutta
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From India, Calcutta
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Minimum wages are published every six months for most of the Indian states. It only varies by the time periods - Jan-June & July-Dec or Apr-Sept & Oct-Mar. Most of the time, it is published with retrospective effect as the CPI index is not available on time. Therefore, as mentioned by KK!HR, I fully agree.
I have certain observations regarding minimum wages as mentioned below:
1. In most organizations, it is paid to contractual workers and even in some cases to permanent workers for a few small organizations.
2. There are organizations that are paying more than minimum wages, especially for workers who have been working for years. They review every year, so a six-month retrospective review is not required.
3. There are organizations that are paying minimum wages with a six-month review and retrospective effect.
4. There are organizations that are not following point number 3 but are paying minimum wages from the month the organization receives the information with no retrospective effect. Additionally, there are organizations not paying the minimum wages.
My personal opinion is that if contractual workers/permanent workers who have been working for years together should receive more than minimum wages (obviously not equivalent to permanent workers) by receiving an increment every year.
We all know the famous Maruti case when, for almost similar nature of jobs, the contractual employees were receiving 18k per month, whereas the permanent employees were receiving 42k per month (as far as I can remember the figures). In my opinion, the contractual employees might have been paid close to 30k per month at that time when the organization was a very big industrial house.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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I have certain observations regarding minimum wages as mentioned below:
1. In most organizations, it is paid to contractual workers and even in some cases to permanent workers for a few small organizations.
2. There are organizations that are paying more than minimum wages, especially for workers who have been working for years. They review every year, so a six-month retrospective review is not required.
3. There are organizations that are paying minimum wages with a six-month review and retrospective effect.
4. There are organizations that are not following point number 3 but are paying minimum wages from the month the organization receives the information with no retrospective effect. Additionally, there are organizations not paying the minimum wages.
My personal opinion is that if contractual workers/permanent workers who have been working for years together should receive more than minimum wages (obviously not equivalent to permanent workers) by receiving an increment every year.
We all know the famous Maruti case when, for almost similar nature of jobs, the contractual employees were receiving 18k per month, whereas the permanent employees were receiving 42k per month (as far as I can remember the figures). In my opinion, the contractual employees might have been paid close to 30k per month at that time when the organization was a very big industrial house.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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You should conduct compliance (wages, contribution of EPF as arrear, and ESIC) for the past period wages. You should create a wages register for the same period for all related employees who worked during that period. Regarding their payment, you should notify your contractor and also send a copy to the labor department concerning the payment due. Additionally, the contractor should inform their eligible employees about the payment. In the letter, you must state:
Dear (Contractor Name),
Please refer to the revised minimum wages set by the government. The wages for the earning period from --- to (whatever the period is) are due for the following employees: (list all eligible employees for the benefit). You are advised to make payments to your respective employees based on the details mentioned above and then claim your bill accordingly. You can also request the mobile numbers of all concerned employees for verification. Keep records of the retrospective wages payment, which can be submitted to the labor department or kept for future reference and inspection.
In another scenario that is neither legal nor appropriate, creating a wages sheet for the effective period and generating fake acknowledgments (forging employee signatures using different pens) is suggested. Other obligations like EPF and ESIC will be actually submitted. This method can save money, but it is recommended to opt for the first approach over the second.
From India, Rudarpur
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Dear (Contractor Name),
Please refer to the revised minimum wages set by the government. The wages for the earning period from --- to (whatever the period is) are due for the following employees: (list all eligible employees for the benefit). You are advised to make payments to your respective employees based on the details mentioned above and then claim your bill accordingly. You can also request the mobile numbers of all concerned employees for verification. Keep records of the retrospective wages payment, which can be submitted to the labor department or kept for future reference and inspection.
In another scenario that is neither legal nor appropriate, creating a wages sheet for the effective period and generating fake acknowledgments (forging employee signatures using different pens) is suggested. Other obligations like EPF and ESIC will be actually submitted. This method can save money, but it is recommended to opt for the first approach over the second.
From India, Rudarpur
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Yes Principal employer as well as Employer/Contractor both are responsible.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The user's reply is correct. (1 Acknowledge point)
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I wish to share our experience in AP & Telangana States.
In both the states, MW was revised in April and October. The base is the average index points from July to December of a year considered for the revision to be applicable from the following April, and likewise, January to June will be considered for the revision of wages from October. Since there is a time gap, the issue of retrospective implementation does not arise.
From India, Hyderabad
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In both the states, MW was revised in April and October. The base is the average index points from July to December of a year considered for the revision to be applicable from the following April, and likewise, January to June will be considered for the revision of wages from October. Since there is a time gap, the issue of retrospective implementation does not arise.
From India, Hyderabad
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(Fact Checked)-The user reply is correct. Implementation of enhanced minimum wages with retrospective effect is legally required under the Minimum Wages Act 1948 to avoid penalties or prosecution for non-compliance. (1 Acknowledge point)