Dear all,

Kindly help me with the below questions:

1. Should the stipend be equal to the minimum wage?
2. How do we decide on the stipend amount?
3. Are the daily wages for housekeeping staff based on the minimum wage or stipend?

Your assistance in resolving these queries is much appreciated. Thank you.

From India
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Dear Gaurav,

Stipend is the honorarium paid to an apprentice or learner for living expenses. It is not wages; this is the general principle that will apply in respect of apprentices under the Apprenticeship Act, 1961, and those undergoing training under any apprenticeship scheme as provided for in the certified standing orders of the industrial establishment. However, the E.C Act, 1923, or ESI Act, 1948, is applicable to apprentices as well.

The Ministry of Labour and Employment, through its notification G.S.R 680(E) dated 22-09-2014, prescribed the minimum rate of stipend per month payable to trade apprentices, which shall be calculated as a percentage of the remuneration of the semi-skilled workers under the Minimum Wages Act, 1948, as applicable to the territory.

Certainly, the daily wage housekeeping staff would come under the Minimum Wages Act, 1948.

From India, Salem
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