Determining the Appropriate Minimum Wage Rates
The question of whether minimum wages are to be paid as per Central Government rates or State Government rates cannot be decided on a random basis. The question needs to be addressed on the basis of the provisions of the law. To ascertain what rate is applicable to a particular industry, it must first be determined whether the industry falls under the control of the central sphere or the state sphere. This is necessary to determine the appropriate government for that specific industry. If the industry is under the control of the Central Government, the rates notified by the Central Government are to be paid, and the same applies to the State Government.
Therefore, it is pertinent to refer to Sec.2(b) of the Minimum Wages Act, 1948, which defines "Appropriate Government". It states that the Appropriate Government means:
i) In relation to any scheduled employment carried out by or under the authority of the Central Government or railway administration, or in relation to a mine, oil field, major port, or any corporation established by a Central Act, the Central Government is the Appropriate Government; and
ii) In relation to any other scheduled employment, the State Government is the Appropriate Government.
If your factory is a mine or oil field, or is being run under the control of the Central Government, or was established under a Central Act, the Central Government is the Appropriate Government. If it does not fall under any of the above categories, then the State Government is the Appropriate Government. After determining this issue, you can pay the minimum wages at the appropriate rate.
Regards,
B. Saikumar
HR & Labour Law Consultant
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]