We have our office boy who is on third party payroll, every time his employer want us to increase his salary, this year in the month of April we have incremented his salary as per the minimum age act again they have mailed us again that this is the minimum wage act of October 2018, please suggest what can be done.
From India, New Delhi
Dear Ankita
At first place it shall be the contractor and not you (Principal Employer who should decide wages or increment for this office boy. All you are required is to ensure compliance with all applicable legal requirements i.e. min wages, PF, ESIC etc.
Shailesh Parikh
99 98 97 10 65
Vadodara

From India, Mumbai
Dear Ankita,
The increase demanded by the contractor may be in tune with the hike in the variable dearness allowance fixed under the statutory minimum wages consequent on the rise in the cost of living index. Some State Governments prescribe the revision of V.D.A fixed under the Minimum Wages Act,1948 once in six months. As P.E, you have the vicarious liability towards payment of statutory wages to the contract labor engaged in your establishment u/s 21(4) of the CLRA Act,1970.

From India, Salem
You have to ensure compliance under Minimum Wages as per scheduled employment, PF, ESI and other Statutory requirement and that is your maximum liability plus agreed service charges.
Let the contractor give him increment every month, you need not worry, if you are complying with the Statutory requirement. (Also check your contract / agreement signed by both the parties).
Regards,
Suresh

From India, Thane

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