Confused About Minimum Wage and Overtime Rules? Need Help for Multiple Locations!

Dear All,

I would be grateful if someone could upload the revised minimum wage for 2010 in English for the following states:
1. Mumbai
2. Bangalore
3. Baroda
4. Hazira
5. Patalganga
6. Coimbatore
7. Chandigarh

We require this information for all positions such as office boys, drivers, etc. Our company is a manufacturing firm with operations in the above-mentioned locations.

I also have another doubt: What if employees who are on the company's payroll are not covered under the minimum wage act? Do we consider only the basic salary, or do we include basic salary and HRA? I am confused as I have received conflicting answers.

Additionally, how should we pay overtime to employees who are on service providers' payroll?

Please reply soon.

Thank you.

Though the Minimum Wages Act is a central legislation, the enforcement and fixing of minimum wages are done by the state government. Therefore, rates will be different from state to state. Similarly, different states have different scheduled employments coming under the Act. However, there is one common element, and that is the components of wages. As such, wages should consist of a basic minimum rate and variable dearness allowance, which varies according to changes in the consumer price index.

It is mandatory that all employees should be paid at least the minimum wages (basic + VDA). If your industry does not come under any of the scheduled employments, you have to pay at least the minimum wages of the notified scheduled employment.

Variable Dearness Allowance is calculated based on the consumer price index of the place where the employees work. It will be an amount on each point of increase in CPI over a base index (as notified). For example, if the DA is Rs 15 per point of increase of CPI above 100 points and if the current CPI is 150, then the VDA will be Rs 750 (Rs 15 X 50).

If you are paying a consolidated amount without any breakup as Basic, DA, HRA, etc., then the amount should not be less than the sum of basic minimum wages and VDA fixed by the respective government.

Regards,

Madhu.T.K

Dear,

You can take the help of the site 'paycheck.in' for the latest minimum rates of wages for different states. The latest minimum rates of wages are available for UT Chandigarh and the State of Maharashtra.

With Regards,
R.N. Khola