Saswatabanerjee
Partner - Risk Management
Apex Management
Labour Laws Consultants
Raghavendra.adv
Currently Working As Deputy Manager
Bhaskarmaya
Business

The basic wage payable to employees of hotels and restaurants as per Tamil Nadu labour department is about Rs. 6075/- per month, while as per centre's list on minimum wages for 2016-17 for Tamil Nadu, it is about Rs. 2570/- per month (Rs.98.85 per day). Why is there so much of difference? Which one should we follow? Please guide.
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Please note that the fixation of minimum wages of different schedule employment is subject matter of State concerned and different mechanism are being opted by States to revise the minimum wages from time to time like linkage of price index or revision on political will.
Keeping in view of the above, I do not agree with your remark "as per centre's list on minimum wages for 2016-17 for "Tamil Nadu", it is about Rs. 2570/- per month (Rs.98.85 per day)."
P K Sharma
The Constitution of India has provided equal powers to Union (Central Government) and State Government on the Items mentioned in Concurrent List (Labour and Employment is one in the list). India is vast country and every state is different from other in many aspects. As such minimum wages are different from state to state which are declared by considering the Consumer Price Index / Cost of Living Index of the particular state. For Central Govt. Undertakings minimum wages are fixed by the Central Labour Department. Likewise, for State Government Undertakings State Labour Department fixes the minimum wages. This is why the wages are not equal in all states.

However, central or state wage which ever is higher has to paid to the workmen irrespective of the jurisdiction of competent authority (Central or State). For example: Two factories (of the same schedule of employment) are located in the same state. One is under Central Government and another in State Government Jurisdiction. If the Central Government minimum wages are less, State Government notified wages are to be paid in both factories irrespective of the jurisdiction.

Hope this will clear your ambiguity.

Raghavendra.

Hope this will clear your ambiguity.

Raghavendra
There is some mistake in your interpretation
The central minimum wage list is for the country as a whole, and not for each state.
So you need to have another look at the documents and see what exactly you are referring to
but i think you are seeing the base wages, whereas what you need to see is base plus special allowance, both together, should be at similar levels as they are base do cost of living
HI Friends,
I work for an MNC in Bangalore, need a clarification on the Current State Wages Act.
Recently my Organization changed the Salary Component Structure stating its per the recent State Wages Act.
Before Changes: Basic Pay->6500, HRA->2500, Special Allowance+ Medical Allowance+ Education Allowance+ Fixed Incentive=21, 000. (Monthly Take Home 30,000)
After Changes: Basic Salary-6500, HRA->18800, Medical Allowance-> 1800, Educational Allowance->1400 and Incentive -> 1500. Is this a State compliant Salary Structure?
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