Diffence Between Contract Labour Wages And Minimum Wages ?

Hi friends,

This is Chandrasekhar. Could you please clarify the following point? Is contract labour eligible for minimum wages and VDA points? I believe scheduled employment will be eligible for minimum wages and VDA points, and contract labour wages are separate.

Please share your opinion on the above.

Regards,
CS

I suggest you kindly reread the Minimum Wages Act, 1948: in the case of scheduled employment, does the Act distinguish between categories of employees or make a distinction in the case of employers?

Representatives of the principal employer are supposed to endorse the wage payment in the wage register. In case of failure, what are the consequences?

Dear Member,

Failure to comply with any of the provisions of the Contract Labour (R&A) Act, 1970 may lead to prosecution of the Principal Employer by the law enforcement machinery.

What is the confusion? As per the Minimum Wages Act, every employer is expected to pay his employees at least the minimum rates of wages fixed by the government. Similarly, if he engages labor through a contractor, it is his duty to ensure that the contractor is paying his workmen who are engaged in his plant/establishment the same minimum rates of wages. Under both, the minimum wages shall include a basic wage and a variable dearness allowance variable according to changes in the cost of living indices.

Regards, Madhu.T.K