We have permanent employees under a union in the engineering industry, and they have salaries above the minimum wage, i.e., Rs. 5704.70 + 2898.70 (D.A) = 8603.40. Contract workers have a salary of 3130 + 2898.70 (D.A) = 6028.70 as of 01/03/14. On 03rd March 2014, as per a notification, the minimum wages were revised as follows:
Minimum Wage Revision
Basic - 6000 + D.A 1624 = 7624 (Unskilled). The same revision was applied to the contract workers who were below the minimum wage (3130 + 2898.70 = 6028.70).
Permanent Employees' Settlement
For permanent employees, as per their settlement, they were only liable for the increase in the special allowance declared semi-annually in January and July of each year. Hence, the Rs.1624 rise in D.A was not given to them.
Notification of D.A Increase
According to the notification dated 06/08/14, the D.A for the period 01/07/14 to 31/12/14 was declared as Rs.1652. The additional amount to be given would be Rs.1652 - 1624 = 28. This was accepted by the contract workers, but the permanent union employees did not accept it. They demanded Rs.1624 from 03/03/14 and Rs.28 from 01/07/14, totaling 1652.
I want to know if the Rs.1624 increase between the six-month period, i.e., 03/03/14 to 30/06/14, is applicable to union employees who are above the minimum wage and what the D.A amount for the period 01/07/14 to 30/06/14 should be for union employees.
Please clarify and assist me.
Regards, Ramesh Gujre
[Phone Number Removed For Privacy-Reasons]
From India, New Delhi
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Minimum Wage Revision
Basic - 6000 + D.A 1624 = 7624 (Unskilled). The same revision was applied to the contract workers who were below the minimum wage (3130 + 2898.70 = 6028.70).
Permanent Employees' Settlement
For permanent employees, as per their settlement, they were only liable for the increase in the special allowance declared semi-annually in January and July of each year. Hence, the Rs.1624 rise in D.A was not given to them.
Notification of D.A Increase
According to the notification dated 06/08/14, the D.A for the period 01/07/14 to 31/12/14 was declared as Rs.1652. The additional amount to be given would be Rs.1652 - 1624 = 28. This was accepted by the contract workers, but the permanent union employees did not accept it. They demanded Rs.1624 from 03/03/14 and Rs.28 from 01/07/14, totaling 1652.
I want to know if the Rs.1624 increase between the six-month period, i.e., 03/03/14 to 30/06/14, is applicable to union employees who are above the minimum wage and what the D.A amount for the period 01/07/14 to 30/06/14 should be for union employees.
Please clarify and assist me.
Regards, Ramesh Gujre
[Phone Number Removed For Privacy-Reasons]
From India, New Delhi
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Minimum wages are to be viewed as a total package, and there cannot be separate compliance for basic pay or DA. As long as you are paying more than the minimum wage as a total package, the claim for separate compliance regarding increased DA is not sustainable as per the Act.
From India, Mumbai
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1593From India, Mumbai
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I want to know the D.A. declared for the period 01/07/2014 to 31/12/14. Rs.1652 means D.A. difference Rs.1652-1624 = Rs.28 is liable to workmen who are above minimum wages. As per the settlement, they are liable to only increase part of the special allowance which is declared for a six-month period of January and July.
Please clarify if there is any law, case, or judgment stating that workers above minimum wages are not liable for an increase in D.A. Rs.1624 between the period from 03/03/14 to 30/06/14.
From India, New Delhi
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Please clarify if there is any law, case, or judgment stating that workers above minimum wages are not liable for an increase in D.A. Rs.1624 between the period from 03/03/14 to 30/06/14.
From India, New Delhi
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