Are Contract Workers Entitled to Minimum Wages and VDA Points? Seeking Clarity!

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?

Consequences of Not Endorsing Wage Payment

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

Understanding Minimum Wages for Contract Labor

What is the confusion? As per the Minimum Wages Act, every employer is expected to pay their employees at least the minimum rates of wages fixed by the government. Similarly, if they engage labor through a contractor, it is their duty to ensure that the contractor is paying their workmen, who are engaged in their 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