What is the confusion? As per Minimum Wages Act every employer is expected to pay his employees at least the minimum rates of wages fixed by the government. Similarly, if he engages labour through a contractor, it is his duty to ensure that the contractor is paying his workmen who are engaged in his plant/ establishment the same minimum rates of wages. Under both the minimum wages shall include a basic wage and a variable dearness allowance variable according to changes in cost of living indices.
Madhu.T.K 16th January 2011 From India, Kannur