It is being informed that Government of Haryana has issued notification , copy attached, in line with its press note released in print media few days thereby back putting at rest all speculations in relation to proposed increase in minimum rate of wages. Through this notification, certain additional conditions have also been imposed upon the employers for the very first time and few conditions of previous notification have been amended. Brief detail of fresh conditions enforced is and its surrounding impact mentioned below.
- Entire minimum rate of wages has been described as basic rate (basic pay) of minimum wage and it has been specifically expressed in the notification that the minimum rate will not be subject to bifurcation into different allowance/s. Thus State Government has converted minimum wage equivalent to basic pay. This has been attempted to dissuade the employers from bifurcating the minimum wages into basic pay and allowances as well as to trim down the impact of judgment pronounced by Hon'ble Punjab & Haryana High Court in the case of Assistant Provident Fund Commissioner Versus GS Security Services (India) Ltd. It will add up the liability of employers wherever the employers have bifurcated / segregated the minimum rate of wages into various allowances. The employers will be under statutory obligation to deduct and deposits provident fund from the validity of the notification on the total minimum rate of wages, unless such condition is quashed by the Courts. Similarly, the employers will also be burdened with additional liability to pay gratuity on this new rate of minimum wage since the definition of wage prescribed under Payment Of Gratuity Act, 1972 is pari-materia to the definition of basic pay prescribed under EPF & MP Act, 1952. On the other hand, the term "wage" so defined under minimum wage includes allowance in its terminology. It may lead to indifferent prepositions and confusions.
- Per day earnings will be calculated by dividing monthly wages by the factor of 26 days whereas the deductions qua absence etc. will have to be calculated by dividing the monthly wages with factor of 30 days. This will lead to different set of calculations for preparing earned wages. The benefit of leave, overtime, holiday etc. will be paid by calculating the same over the factor of 26 days.
- Automatic revision in salary from unskilled category to semi skilled category by afflux of time earlier fixed as ten years has been reduced to five years. Therefore, all the employees working in unskilled category within schedule employment for five years or more duration, their salary will have to be upgraded to the salary paid to Semi Skilled-A category. However, the employers will not yet be at liberty to take semi skilled nature of work from such employees despite paying salary equivalent to said trade. Employees having experience in Semi Skilled A category for three years will have to be paid the salary of Semi Skilled B category. Likewise employees having experience of working in Skilled-A category for three years will be paid the salary benefit of skilled B category thereafter.
- For such employees whose nature of work has not been described in the schedule employment, they will have to be paid minimum wages fixed for similar category having similar skills so notified.
- The period of training has been fixed as not greater than one year of duration. However, under Minimum Wage Act, 1948 as per its objectives, only the issues pertaining to settlement of remuneration of workers can be determined. This Act has been enacted for providing periodical revision of wages. This Act does not confer power with the State Government to fix the conditions of engagement of particular classification of employment which subject matter squarely falls under the purview of Industrial Employment Standing Order Act, 1946.
With above discussions, the current minimum rate of wage so revised by the government is mentioned for your ready reference,circular enclosed for the reference.
The aforesaid minimum rate of wage has been made effective from 1st November 2015 in the State of Haryana.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
sumitk.saxenaforgot to enclose the attachment plese find the same. thanks & regards, from sumit kumar saxena
From India, Ghaziabad
dabs009This notification is now challenged before Punjab & Haryana High Court.
Safai Karamchari's main wage is 8100/-. Bifurcation of Allowance, MW Act does not interfere with Contract of Employment, Benefits of promotions prescribed, limiting of training to one year, 100% neutralization etc are some of the points challenged.
From India, Delhi
mukeshkumarpanwarDear Sumit Kumar Saxena Ji,
Thanks for the useful information.
I have a query that above enclosed notification (for Min wages as basic wages) is not signed by any authorized Govt. officer. Is this O.k.
From India, undefined