Umakanthan53
Labour Law & Hr Consultant
Bhartiya Akhil
Freelancer

Hi Pls advise that if minimum wages got change then whether it will be effected for existing workers as well Rgds CS Paliwal Cosmos Group
From India, Gandhinagar
Dear Chandrasekar,

I infer what you mean actually is whether the change in minimum rates of wages already fixed would be applicable to the existing employees.

1) Fixation of minimum rates of wages for any employment brought into its schedule is the first exercise under the Minimum Wages Act,1948. Such rates become applicable to the existing employees in the scheduled employment effective from the date of notification. The same rates also apply to those employees who join later.

2) Change in the minimum wages subsequently occur - one is periodical change in the dearness allowance liked to the Cost of Living Index according to the raise in its points and the other one is due to the revision of the rates of minimum wages once in every five years.

Therefore, such changes in the quantum of statutory minimum wages have no distinction as to existing employees and future employees. At times changes become retrospective also as a result of which arrears have to be paid to all those in employment on the effective date.

From India, Salem
Dear Umakanthan Sir,
What I feel our friend CS Chandrasekar want to ask when employee is drawing salary more than minimum wage as prescribed and there is a revision in the rate, at such time is it necessary to revise the salary of such employee.
CS Chandrasekar ji, you are requested to bring clarity on your question.

From India, Mumbai
Dear Akhil,
If that's the actual question, as you know, the poster need not bother as long as his industry wages remain on par with the statutory minimum wages.
To ensure this, those components in the industry wage structure which are excluded from the definition of wages should not be taken into account while determining the parity.
As of now, a reconsideration of the so called parity is absolutely required, as the Code on Wages, 2019 is likely to come into force.
In my opinion, unnecessary breaking up of components introduced in the industry wage structure would not serve the intended purpose of reducing employer's indirect financial commitments as the definition of the term wages found in the COW, 2019 provides for automatic absorption of the excess of the sum of those components other than basic, D.A and retaining allowance into the wages when their proportion exceeds 50% of the gross.

From India, Salem
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