Minimum Wage Confusion: Should We Follow State or Central Guidelines When They Differ?

Hi,

Both Central and State Governments issue notifications on minimum wages from time to time. If there is disparity in wages, then which notification is to be followed? Are there any specific conditions laid down by the Central or state that "whichever minimum wages are higher for the given period should be applied"?

Can anyone provide evidence for this?

Thanks/Regards,
Sridharan
L&T Delhi

Dear Sridharan,

As far as it relates to Haryana State, we have not seen any such instructions in the minimum rates of wages gazette notification that employees in a given scheduled employment will be getting higher minimum rates of wages if the minimum rates of wages of the central government are on a higher side in the similar scheduled employment.

R.N.KHOLA

Revision in minimum wages is announced by both the central and state governments through an official notification. The central government is responsible for ensuring that these minimum wages are adhered to in the companies/establishments under their jurisdiction. For instance, if you are involved in construction work or any other activity within central government premises such as the Passport Office, Airport Authority of India, ESI office, State Bank of India, etc., the minimum wages specified in the central government notification will apply.

Similarly, state governments also have authority over areas within their jurisdiction. For example, municipal buildings in cities/towns and similar locations, as well as all other offices. In these places, the minimum wages outlined in the state government notification must be complied with.

Balaji

It all depends on that establishment whether the 'appropriate government' is the central government or state government.

The definition reads as follows:

"appropriate government" means:
(i) in relation to any scheduled employment carried on by or under the authority of the Central Government or a railway administration, or in relation to a mine, oilfield, or major port, or any corporation established by a Central Act, the Central Government, and
(ii) in relation to any other scheduled employment, the State Government.

I hope it is clear now.

P M Patel

Scheduled Employment Wage Rates

In scheduled employment, there are two wage rates: central and state. Which wage should prevail?

Dividing Minimum Wage into Categories

Can we divide the minimum wage into different categories such as HRA, CA, TA, etc., to reduce the minimum wage for the payment of PF subscription?

Mandate on Minimum Wages Notification

This has been mandated in the notification of 12th May 2009 in Explanation No. 6 of the Gazette notification for minimum wages. Please ask for a copy from Joe at [Email Removed For Privacy Reasons].

Regards.

Mandated Position in Minimum Wage Notification

The position has been mandated in the notification of 12th May 2009, in the explanation attached to the minimum wage notification issued by the central government. You can request a copy from Joe at [Email Removed For Privacy Reasons]. Obviously, the above does not apply where only the state government is the appropriate government. Thus, it mainly applies to sectors like telecom, refineries, railways, etc.

Regards

Is there any government notification regarding the applicability of wages if the organization falls under the central shape in any state of India, and wages should be whichever is higher.