Dear Ld. Friends,
This is, in fact, a very good question on the enforcement of the Minimum Wages Act, 1948, which draws the attention of a number of HR personnel. The employers who are already giving a daily rate of wages or a consolidated monthly rate of wages are not to think over this issue. This question arises only for those employers who want to give wages based on basic wage with different types of allowances. The main point that creates confusion regarding this subject is the definition of wage [sec. 2(h)] and Minimum Rate of Wages [sec.4] of MW Act, 1948. According to the definition of wages, it includes all remunerations, including HRA. The heads that are not to be included are also given in this definition. In my opinion, we should first examine section 4 of MW Act, which consists of three ways of fixation/declaration of minimum rates of wages by the appropriate Government, and thereafter we are to go through the fixation of the minimum rates of wages notification of the respective State that under which para of section 4 the rates have been announced. For example, in Haryana State, this notification shows that the rates are all-inclusive, which means that bifurcation in wages head is allowed, and thus the rates have been announced according to para (iii) of section 4. If this is not allowed, then what is the necessity of having this para in the picture? There are already two paras i.e. sec.4 (i) (ii) of the ibid Act in question. If this type of confusion persists, then the Govt. should come forward to clarify the situation and should clearly indicate in the notification that under which of the para they are issuing the notification.
Other Ld. Members are also requested to give their comments on the issue of in which situation bifurcation is allowed.
Regards,
R.N. Khola
(Haryana)