PL Kanthan
Private Consultant On Labour Laws
+5 Others

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Dear Sir/Madam,
Since the Minimum wages has increased,thus there is one employee working at Bangalore location in my company who comes under the bracket of Minimum wages.His earlier appointment letter need to be revised matching to the current Minimum wages.Kindly help me with the letter(Revision in continuation to existing appointment letter) to be shared with the employee for the restructuring of the Salary package as per the effective Minimum wages.

Minimum wages increase quarterly. we don’t give any letter to the employees. We provide salary slips which shows their break Up. Upasana
Ms Sneha,
The minimum wages are increased from time to time based on the cost of living index and are regulated under Minimum Wages Act. The appointment letters are not linked with the minimum wages. The increase in wages/ salaried are automatic phenomenon of the continuance appointment. It is never revised or issued afresh on getting increment or revision in the wages/ salaries. The salary slips are issued with detailed breakup of their earnings.
BS Kalsi,
Member Since August, 2011

Dear Ms Sneha,
As Mr.Kalsi has brought out, there is no need to give letter/letters as and when Min Wages are revised.
However, in case in the initial appointment letter in case you have mentioned only amount of Wages and not mentioned that it is as per Min Wages, then you may consider clarifying that he is and will be paid min wages.
Even if you do not do so, then no harm done.
Best Wishes,

Dear Ms Sneha,
As clarified by other valuable members, when it comes to Minimum Wages, there is no need to give any letter to the employee to that effect particularly, as it is an ongoing process.
However, you may, if need be, issue a common circular indicating the Revised MW and its effective date. This will protect your position.
Pls remain always updated on the MW because it is a statutory matter involving Labour Commissionerate.
PL Kanthan

Dear Ms.Upasna, Just for the matter of record, in Delhi, the wages are revised not quarterly but twice,in April and Oct. Regards, Col.Rathi
Dear All,
Thank you for such valuable feedback.Actually the applicant is deputed at Karnataka location and the compliance request has been arises from our client location.Thus I have issued a letter to him mentioning the revision in salary structure along with the back dated arrear. Can this be shared to the client after getting acceptance from the candidate?

Respected Col. Rathi,

I quote your postings, which is as under:-

"However, in case in the initial appointment letter in case you have mentioned only amount of Wages and not mentioned that it is as per Min Wages, then you may consider clarifying that he is and will be paid min wages."

Let me make it clear that in the appointment letter, there is no mentioned of minimum wages rather it is only wages or salary at which employee is intially hired.The payment of minimum wages in the scheduled employments is the statutory obligation of the employer. There is no need to mentioned the same in the appointment letter. It is, of course, true that in NCT of Delhi, the rates if minimum wages are revised twice in a year.

Ms Sneha,

As you have mentioned in your postings, I find your action quite in order except

where you have enquired as to whether the information can be shared with the client after getting acceptance from the candidate. In my opinion, there is no need to seek acceptance from the candidate as payment of revised minimum wages is statutory obligation.However, there is no harm in informing him of the revision.

BS Kalsi,

Member Since August, 2011

Thank you for sharing the information.I got my query satisfied.
Dear Mr.Kalsi,
Nice to hear from you.
In my organisation, it is mentioned that the employee is to be paid min wages and he /she is in category of unskilled/semiskilled/skilled category.
Reason is that in case of all other employees, the salary is revised as per standing order, every year whereas in there case it gets revised twice a year
However, no harm done if it is not mention as min wages.
Differs from employer to employer.
Also like to mention that in case the employee's place of work is different from HQ and has been deputed on permanent basis to work at say place A then min wages will be applicable for Place A and not as applicable at HQ.
PS. It is always a pleasure to read your posts

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