How Do You Calculate Minimum Wages for Part-Time Service Jobs? Seeking Advice!

Dear Seniors, please suggest the minimum wages for a part-time job in the service sector. For example, if the minimum wages for an employee working 8 hours are Rs. 3892, what would be the minimum wages for a person who works for 6 hours? Does it vary for a person working on a contract basis? Please suggest. Your replies would help many people.

Thanks & Regards,
Swetha

The Labour Department of Tamil Nadu does not recognize the category of "part-time employee." If you employ a person on wages, the minimum prescribed wages must be paid—whether you use them for a maximum of 8 hours per day or less.

In my opinion, payment of wages to anyone—whether permanent, regular, probationer, trainee, casual, or part-time—should not be less than the minimum wages prescribed for that category.

Regards,
S. Krishnamoorthy

Dear Krishnamoorthy, thank you for the reply. Could you please verify if the calculation below is correct?

Calculation Breakdown

Basic - 2192
DA - 1698.30
Total - 3890.30

Minimum wages are considered at Rs. 3892 per month.
Rs. 3892 / 26 days = Rs. 150
150 / 8 Hrs = 18.7/Hr
18.7 * 6 Hrs = 112.25
112.25 * 26 Days = 2925

Please advise on the accuracy of the calculation.

Thanks & Regards,
Swetha

What is the employee's designation?

What is the minimum wage (per month) prescribed by the State Government?

The total remuneration that you propose to pay should not be less than the minimum wage mentioned above.

Regards

Dear Krishnamoorthy, The minimum wage for the employee is Rs. 3892/- per month. If the work is for 6 hours, is it correct to pay Rs. 2925/- per month? Please suggest as I am getting different answers for this query.

Thanks & Regards, Swetha

In my opinion, it is not correct. The minimum wages should be for 8 hours. One cannot reduce the same for six hours. Moreover, also find attached the PF circular where the bifurcation of minimum wages has been put in abeyance.

As I mentioned earlier, minimum wages (Rs. 3892/- p.m.) will have to be paid. It is up to the management to make the employee work for 8 hours. This is the position in Tamil Nadu.

Regards,
S. Krishnamoorthy

The very concept of minimum wages will be undermined if we divide and pay a proportionate amount. It is the employer's responsibility to ensure that employees work for a full 8 hours.

Regards,
Prakash

Dear Seniors, the final word is "it's not legal to reduce the salary depending upon the work timings." Whatever amount we are paying for 8 hours of work, we should also pay for 6 hours. Am I correct?

Thank you.

I think we shouldn't rely solely on arithmetic in this matter. Fixing a wage pattern is even more challenging given the suitable designation itself. Logically, part-time remuneration should be based on the broad classifications in vogue, such as Tech: unskilled, semi-skilled, skilled, and highly skilled. Non-Tech roles may also follow the same lines. We know we are employing Engineers, Doctors, Nurses, Accountants, CAs, Lawyers, and HR experts on a part-time basis (though we may not call them part-time but consultants to give a decent designation). I think not all can be fitted on the minimum wage scale. Safely, unskilled, semi-skilled, and skilled can be used for this discussion. The queriest has not provided the query with such indications. In the absence of some lead, generally offering some opinion is rather unfair. We shouldn't forget that even part-time workers are also entitled to PF. Are we on the right track?

Regards,
Kumar.S.

The term "minimum wage" applies to the amount of wages for a worker for a duration of 8 hours or part thereof. This is the law, and if you interpret it in your own way without the application of mind and correct understanding, you are answerable to the state authorities and, of course, your management if questioned at a later stage. I have been informing repeatedly; please refer to the rule book if you seek clarification on the rules. In the HR department, regardless of your role, you should have the relevant ready reckoner and the latest books and publications of the State Government on the Factories Act, Minimum Wages, and Gazette.

All the best.

Regards, V. Rangarajan.

The question seems to be very interesting, but the amount of money you are asking for is very low. The minimum wage for working 6 hours should not be less than 6000 per month.

Maybe you can find some clues from this:

1. Instead of struggling with working hours and minimum wages, why don't you consider fixing a lump sum remuneration for piecework on a daily basis, payable through monthly payments, if you don't have any problem including them on your payrolls?

Labour Contract Mode:

2. Alternatively, employ them through a contractor of HK, etc., providing a detailed work description and paying them through monthly bills. They will still be governed by the CLRA Act, where you have to ensure PF, ESI, etc.

Works Contract Mode:

3. Also, you can finalize an AMC without involving any supervision from you, for which the annual lump sum payment is released on a monthly basis either proportionately or as advances.

Any other suggestions, dear friends?

Regards,
Kumar.s.

One thing, minimum wages can't be split up. There should be three categories: skilled, semi-skilled, and unskilled. Minimum wages are for 8 hours, and we should pay that amount. Additionally, minimum wages are classified based on different industries.

Regards,
Hari

Before I suggest anything, you should be clear that there is no such thing as "PART TIME JOBS" in the Minimum Wages Act. Now, either the person is an employee or not (from a legal point of view).

Conditions for Part-Time Employment

Assuming the "Part Timer" is an employee, then there are two conditions to consider:

1. If a person is employed but not working a full normal day, then the following Section 15 of the Minimum Wages Act would apply:

Wages of a Worker Who Works for Less Than a Normal Working Day

15. Wages of a worker who works for less than a normal working day. If an employee whose minimum rate of wages has been fixed under this Act by the day works on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day.

Provided, however, that he shall not be entitled to receive wages for a full normal working day:

(i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work, and

(ii) in such other cases and circumstances as may be prescribed.

Second Condition

2. Section 17. Minimum time rate wages for piecework. Where an employee is employed on piecework for which a minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate.

(Above refers to the law)

(IMPORTANT: Now, to your question, if the specific government specifies a minimum time rate, then you can pay the "Part Timer" as an hourly rate. If not specified, then go with options.)

May I suggest: are you giving (if you are the employer) rest intervals in those 6 hours?

As per my discussion with my legal consultant, the minimum wage can be split if we have hired someone for a 4-hour shift in a day. Half the amount of the minimum wage would be payable in this regard, on the condition that one should take an undertaking from the employee stating that he/she is doing a part-time job of his/her own volition, and that the person has accepted the company's terms and conditions.

However, if we have hired anyone for more than a 4-hour shift, then the full minimum wage is applicable to be paid. The attachment provided on the first page for the splitting of the minimum wage is currently on hold; it is an altogether different calculation for the basic wage.

Please review the corrected text above.