What’s the Minimum Wage for IT Employees? Seeking Guidance from Experienced Pros

Hello seniors,

I need your help. I want to know the minimum wage rate for employees of an IT company.

Is the Minimum Wages Act applicable to shops and establishments? Also, can you help me with the wage rate for the year 2009?

Dear Arcana,

The Minimum Wages Act, 1948 may also apply to Shops & Commercial Establishments if added to the list of scheduled employments by the appropriate Government. As per section 2(g) of the MW Act, "Scheduled Employment" means an employment specified in the schedule, or any process or branch of work forming part of such employment. Therefore, any employer who employs one or more employees in any scheduled employment is liable to pay minimum wages as fixed or declared by the appropriate Government for that employment.

Regards,
R.N.Khola

Hi Archana,

For the IT industry, minimum wages are applicable as per the Shops & Commercial Establishment Act. The Shops & Commercial Establishment Act also includes the Minimum Wages Act. The minimum wage varies from state to state. Moreover, it is quite marginal. I believe it should be around 3000 Rs per month. You can refer to the books on your state's Shops & Commercial Establishment Act for the latest minimum wage rates.

Jeeva

Hi Jeeva,

Will you please tell me if these minimum wages include DA as well? Also, where can I find the classification of zones for minimum wages?

Regards,
Archana

Hi Archana!

No, DA is not included in this. I believe you will get the handbook for Minimum wages in bookshops for a particular state. You can refer to that. Else, you can even check on the web. But I believe they would have posted for 2008 and would not have updated for the current year.

Jeeva

Dear Friend Archana!

Kindly refer to the following books state-wise because the Minimum Wages Act of 1948 differs from place to place, industry to industry, and state to state. Below are the names of the books and their respective authors listed by state:

- Rates of Minimum Wages by Mr. R.S. Sharma, C. Sitaraman & Co. Pvt. Ltd. - Tamil Nadu
- The List of Scheduled Employments Minimum Wages Fixed by Mr. Sathpal Puliani, Karnataka Law Journal Publications - Karnataka
- The Law of Minimum Wages by Mr. Padala Rama Reddi & Mr. Padala Srinivasa Reddy, Asia Law House Publications - Andhra Pradesh
- Law of Minimum Wages in Kerala by Mr. C.K. Saji Narayanan, Swamy Law House - Karnataka

By Marlia

Dear Archana,

As per law, IT or other industries are not different, so the same law is applicable for IT. In Maharashtra, the minimum wages (Basic+DA) are around Rs. 4000/-. I am not sure about the exact amount, but there are no different laws for IT.

Thanks,
Yogesh Phanase

Dear Friend,

It's simple; minimum wages differ from state to state. There is a Central Minimum wage as well, which is based on the location of your city. Minimum wages are never industry-specific. You need to check this with the State or Central Gazette. For the latest information in states, check with the labor Department in your city.

Regards,
Sanjiv Shrivastava

Dear all,

You can visit your nearest Regional Commissioner of Labour office and inquire about the current minimum wages for shops and establishments. They will provide you with immediate assistance by offering relevant information such as basic wages, VDA or DA points, and the rate per point of increase in index points. The minimum wages include either D.A. or VDA, under the name it is designated. The minimum wage constitutes the basic wage plus D.A.

For up-to-date information on the latest minimum wages applicable for payment, you can seek guidance from the labor officer or refer to the most recent gazette notice issued by your state government concerning the latest index points for the calculation of VDA or DA.

Mohan Rao Manager HR

Dear Archana,

You can visit the link given below. I think you will gain clarity on minimum wages in India.

[Minimum Wages India – Current Minimum Wage Rate India](http://www.paycheck.in/main/officialminimumwages)

Regards,
Surjit Singh

As per my knowledge and experience under the Shops and Establishment Act (State), the current minimum wages are as follows for the period of July 09 to Dec 09:

1. (Basic + DA = Minimum Wages)
2. Skilled: Basic 3330 + DA 955
3. Semi-skilled: Basic 3230 + DA 955
4. Unskilled: Basic 3130 + DA 955

Minimum wages change every 6 months (Jan to June and July to Dec), and we receive notifications through a legal consultant. Please confirm with your legal consultant.

Hi all,

I wanted to start a payroll system in my company. What all is needed? Mine is a trading company. Kindly guide me on the legal documents needed. My company comes under Bombay Shop's Act.

Please find attached a file on minimum wages which pertains to shops & establishments.

Thank you.

As per law, IT or other industries are not different, so the same law is applicable for IT. Minimum wages differ from state to state.

Regards,
Balvinder

Dear Archana,

Please find below details of the Latest Minimum Wages Act (W.E.F. July 2009) in Haryana under the Factory Act of 1948. If it is useful for you:

The Government of Haryana issued a circular dated August 31, 2009, revising the minimum wages effective from July 1, 2009. The details are as follows:

MINIMUM RATES OF WAGES FOR HARYANA W.E.F. 01.07.2009
(Vide Haryana Govt. Circular Dated 31.08.2009)

Category: Monthly Wages / Daily Wages

- Unskilled: Rs. 3913.93 / Rs. 150.53
- Semi Skilled A: Rs. 4043.93 / Rs. 155.53
- Semi Skilled B: Rs. 4173.93 / Rs. 160.53
- Skilled A: Rs. 4303.93 / Rs. 165.53
- Skilled B: Rs. 4433.93 / Rs. 170.53
- Highly Skilled: Rs. 4563.93 / Rs. 175.53

Thank you.

Dear Meenu,


Archana is asking the minimum rates of wages for Maharashtra State. Here in Haryana when the sum total of wages comes out in be more then fifty paisa then we are to take amount as one rupee & hence the rates shown by you are to be read in round figure. Therefore, the minimum rates of wages for the category of un-skilled, Semi-skilled A, Semi –Skilled B, Skilled A, Skilled B & Highly Skilled are to be read as Rs.3914,Rs.4044,Rs.4174,Rs.4304,Rs.4434,Rs.4564 per month respectively & daily rates of wages is also to be considered as in round figure. Thus we may note that in each category there is a increase of Rs.130.The field functionaries have received these instructions from the office of Labour commissioner, Haryana vide letter No. 26708-800 dated 25.08.2009. This is the only point which we are to keep in mind while implementing these rates of wages. These rates are for different schedule employments as notified by Haryana Govt. under the Minimum Wages, 1948


Regards,

R.N.Khola

Hi all,

I am working in a company trading in electronic components in Pune, but the company is registered under the Shops Act. I am working in HR, and we want to start issuing payslips, establish a salary structure, and implement PF. How should I proceed?

Kindly reply to me... it's urgent... Thanks in advance.

Please help me by providing information on the basic wages under the Minimum Wages Act for scheduled employment for the years 2010 and 2011, if available.

Regards,
Mohammad Harun

Please help me by providing information on the basic wages under the Minimum Wages Act for scheduled employment for the years 2010 and 2011, if available.

Regards,

Dear all,

I want to have clarity on the Minimum Wage Act. Can we bifurcate the minimum wage into HRA, conveyance, or other allowances? I have read all the articles on Cite HR and other sites but didn't get a satisfactory answer. All the judgments are contradicting each other. Please also confirm whether the PF department-issued notifications or the Minimum Wage Act should be considered while preparing the salary structure. All the judgments passed are by high courts of various states. The Supreme Court decision is still pending; can we consider those as well?

Punjab and Haryana High Court Judgment

- Favoring the employer - 01/02/2011, stating we can bifurcate the wage.

Madras High Court Judgment

- Favoring EPFO - 07/06/2011, stating we can't bifurcate the wage; it should be basic + D.A. only.

Your expert advice would be a great help for me. Thanks in advance.

Regards,
Himanshu Guleria