Saswatabanerjee
Partner - Risk Management
+3 Others

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Dear All
Kindly help me in following point.
1.Some Worker has experience about 5 to 10 years
2.But they are unsatisfied with their salary.
3. Is it any rule about experience base salary.
4.Now We are giving above minimum wages
5.Is it legally ok?
from
Shriname

From India, Chicalim
The minimum wages is what an employer is required to pay to an employee according to the skills possessed by him irrespective of the number of years of service. However a salary to be just and fair it shall relate to the skills, experience and degree of resposnsibilities.
B.Saikumar
HR & Labour Law advisor
mumbai

From India, Mumbai
Mr.shriname

So far as compliance under Minimum wages Act are concerned, the government notifies minimum wages for each category of employees like skilled, unskilled and manual establshment wise like shops and comemrcial establishments or Engineering industries etc. which consist of a basic pay and special allowance. The minimum wages are not based on the length of service. You need to ensure that you are not paying less tahn the minimum wages prescribed for theat particular category. If you are paying more wages than the minimum wages stipulated in the notification for any particular category of employees, you are deemed to have complied with the Act.

However, when I talked about just and fair wages, Iam talking about wages beyond the prescribed minimum wages. So far as the Act is concerned, there is no breach of it by you since you are paying more than minimum wages and the Minimum Wages Act does not stipulate that the wages shall be according to the length of service or experience..



B.Saikumar

Mumbai

From India, Mumbai
Legally you are ok
However, if workers are not satisfied, you need to see how your salaries compare with others in the Industry. In the end, you need to take a call on how much you can afford to pay, how easy is it to,replace a 10 year old worker if he decided to leave and how it affects your efficiency, quality and output. Combination of these factors will decide the final salary you will pay

From India, Mumbai
Dear Shriname,

You did not mention if there are a number of employees or one, any way. In any case you have to identify personnel working in your organisation as per their skills such as unskilled, semi-skilled, skilled and highly skilled. Change in their levels of skills is based on the length of service required to be put in at that level coupled by the level of higher skill achieved to the satisfaction of the management. You have to judiciously decide number of time- scales at a particular level. In doing so you may look forward to wage structure/ pattern of other industries of similar nature in your neighbourhood for guidance and parity.

As regards Minimum of Wages Act it applies to workers engaged on casual/daily basis, hence, their wages are computed on daily basis and also on monthly basis if the work persists accordingly. Secondly, it stipulates wages below which the employer cannot pay to his workman in any case and on any pretext. These wages are revised by the govt. concerned from time to time.

I am sure this can take care of your problem.

Regards

S.K.Johri

From India, Delhi
Dear Johri
I am quite satisfied with your suggestion
But one worker told that if any worker working for 7-8 year
then legally he must get about 14000/-rs salary.
And he give some other companies examples like labour officer visited in
their company and he also told that company now paying very short
salary to their worker (8200/-rs).
Then what to do.
from
Shriname

From India, Chicalim
Dear Shriname, If any labour officer visit in your office than you can show your document and satisfy him that your are paying a minimum wage priscribed by the state govt. Neeraj Sharma
From India, Delhi
Dear Shriname,
The Labour Officer is concerned with the enforcement of Minimum Wages Act etc. If he visits your organisation and poses the question related to the experience related wages of the worker, you can satisfy him by showing him the wage payment to the concerned workman as per the Minimum Wages (which you should ensure for all workmen). In this case I agree with Mr Neeraj Sharma.
However, not as a matter of rule but for the purpose of keeping your personnel motivated please keep into consideration time scale (which should cater to annual increment) for every post so that no workman feels stagnated and thinks of leaving you at the first available opportunity.
Regards
S.K.Johri

From India, Delhi
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