Madhu.T.K
Industrial Relations And Labour Laws
Sharmavk05
Consultant

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Dear All, Please let me know about minimum wages with unskilled,semi skilled & skilled minimum wages and Basic + DA are same.
How can wages be same for skilled and unskilled labours? Wages is the remuneration for the services. The services given by a Skilled worker will not be the same given by an unskilled worker. Therefore, the basic wage will be different for different categories of workers. At the same time, there can be different treatment with regard to allowances. It can be same for all employees or can differ according to grades or skills.

Variable Dearness Allowance which is expected to adjust the cost of living index or increase or decrease in the consumer price indices will be fixed for all categories of employees. This is because there cannot be different consumer price for different categories of employees. All employees get their needs from the same market. Variable DA is adjusted to the price index over a period of time. Some states (like Tamil Nadu) fix it in 12 months period whereas some other states (like Maharashtra, Karnataka etc) fix it for 6 months' period and in some other states like Kerala DA is adjusted every month based on the CPI of that month. Since DA is a certain amount per increase in CPI, it will be same for all the employees.

In respect of employees who are not under the Minimum Wages, there can be different structure for salary.

Madhu.T.K

Many sms and mails have been received from Union Labour Minister, EPF and ESI that minimum wages has been increased to Rs 350/- per day. What is the effect and action of these messages. How it is to be calculated multiplied by 25/26 or 30. It would be applicable without notification of State Govts, if so from when? Is there is any kind of notification issued?
Minimum Wages is a state subject. The sms you receive pertains to the one announced by the Central Government. It is a blanket statement issued just to mollify the strike called by trade unions. Now, the states have to issue notifications putting this as the minimum rate applicable for unskilled workers. Another major challenge is that this 350 is the gross wage per day and the state will have to re do it bifurcating the amount in to basic rate and dearness allowance. Otherwise, this 350 should be treated as basic rate and DA will have to be paid extra.
In states like Kerala where the minimum rate of wages is already more than 350 what is to be done is another challenge. anyway we cannot reduce the wages in tune with the central notifications.
Madhu.T.K

Dear Anonymous ,
Mr. Madhu T.K has replied your query very nicely and I want to add that classification of the workmen under minimum wages act , has been done by the state or competent authority .In case of regular workmen you may classifies as per their required skill set and wages can be fixed either fair wage / living wage / minimum wage .
Regards

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