hrbuff
3

Hi Seniors
Need you guidance in understanding the minimum wage case
We are a company of 400 employee with a head office in Gurgaon (Haryana). 80 % of our work force are filed workers and are working in different Indian states (Karnataka,Kerala,Tanmilnadu,Andhra Pradesh etc). We make and disburse the salaries of all the employees from Head office Gurgaon office and we follow minimum wages for Haryana for all the employees working at different locations of India.We have project office at different location which we wind up once the project gets over
Just want to check do we need to consider minimum wages of different states while making salaries of the employee who are working there or it can be followed Haryana minimum wage for all.
Looking forward to your replies
Regards,
HRbuff

From India, New Delhi
hrbuff
3

Dear Seniors, Your guidance is required here. Regards, Hrbuff
From India, New Delhi
nathrao
3131

You have to pay minimum wages of the state the workers are working or higher if the company feels like.
From India, Pune
anujsaini6@gmail.com
24

Dear I think that wages will be disbursement as per state wise and you have to follow minimum wages of same state in which worker are working in project.
From India, Dehra Dun
Pan Singh
94

Dear Hrbuff,
The Minimum Wages Act comes State Govt. Jurisdiction. You should follow the patter where the employee is being deployed.
Also note the Minimum Wages structure can vary from state to state. In some state D.A. is mandatory part of Minimum Wages.
But in Delhi there is only sigle Basic minimum Wages. In Maharashtra, HRA is also part of the Minimum Wages.
Pls take care of the point bcoz PF is deducted on DA as well.
If any employee is working in multiple states, the minimum salary should be on pro rate basis.
Since you have a large strength of Field Workers, even if they are covered under ESI,
it is advisable to have some Group Insurance-Mediclaim Policy as well to cover them under Social Security.
Hope you will find the observation in line, senior members pls correct me if something required.

From India, Delhi
hrbuff
3

Thanks Sirs for your valuable comment on this subject. Just to Highlight
Since we are a project based company and we sent our employees to these states (locations) on Deputation for project purpose. Once the project gets over they are asked to return back to Head office (Gurgaon) in case of no project or to some other locations as per the project requirements.
So considering this situations how to keep track of minimum wages based such the movement of the engineers
Can't this be shown that these engineers are on deputation for some time for project requirement
Regards,
HR Buff

From India, New Delhi
Pan Singh
94

Dear HRbuff,

As stated by you the employees (engineers) are keep on rotating in different states as per your project requirement.

Since they are engineers not the unskilled/semi skilled labour. As per my opinion the salary of such engineers should be over and above the Minimum Wages scale.

The minimum wages is defined to cater the minimum living standards of employees.

It is better to have a working on Minimum Wages of different states. Define the Salary structure in such a way which should meet the highest Minimum Wages.

By doing so, you should not worry about the Minimum Wages, coz in whatever state, project, place they will work.

There salary will be more than Minimum Wages.

However for Cost Controlling purpose, you can revise their salaries as per revision/s in the Minimum Wages Notification/s.

Moreover, there would be a proper platform for the calculation of other Statutories as well.

The salary structure will be same for calculating PF-ESI, Bonus, Leave, Gratuity, OT etc.

Hope this will meet your requirement/s. Fellow members can enlighten the point, if any correction/s required.

From India, Delhi
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