Understanding Minimum Wage Rules for Engineering Services: Can You Help Clarify These Questions?

Dear all,

Please help me in answering the below-mentioned questions. Our company is into Engineering services like AutoCAD designing, and we have around 130 employees. Please reply to the following questions:

1. Which act does this company cover - Shops & establishment or software?
2. What is the rate of minimum wages for both IT and shops?
3. Is there any rule that the basic and DA should be 60%?

Thank you.

Brother,

There is no minimum wage for the IT industry specifically as it is covered under the Shops and Establishments Act. Your company, therefore, will be governed by the wages applicable under the Tamil Nadu Shops & Establishments Act. There is a separate basic salary and separate DA applicable under this Act. However, as long as the total amount paid by the company is more than the Basic + DA specified by the Shops & Establishments Act or the Payment of Minimum Wages Act applicable in Tamil Nadu and for the Chennai Zone, it is fine.

Brother, don't even bother to look at the wages applicable under these Acts. It is pathetic, and I am sure any company will be paying much more than that.

Hope this clarifies.