Minimum Wage For Shop & Establishments - PDF Download

We are a Private Limited company registered under the Shop & Establishment Act in Maharashtra. Are we covered under the Minimum Wage Act, or does this act apply only to government concerns? If yes, then what is the latest minimum wage for us? Kindly guide.

Regards,
Sudha

Dear Sudha,

Yes, you have to comply with the enactment of Minimum Wages and you have to pay salary to your employees (employed directly or through a contractor) equal to or above the amount mentioned in the latest notification.

Now, this categorization of "Shop & Establishment" shall be very wide in the case of Maharashtra since there happen to be a lot of subcategories under this. So, first of all, you need to find out what schedule of employment applies to your employees as per the business type your organization is into and to what skill sets they are employed, respectively as unskilled/semi-skilled/skilled. You have to revise the pay as applicable whenever there are any modifications in the Minimum Wage (MW) notification.

It's simple... Normally, the MW is revised within a span of 6 months. So, collect a copy of the latest notification for the scheduled employment within such a span (the tenure for which the present notification shall be applicable is mentioned on the document itself) and regulate the pay structure accordingly.

Now, for Maharashtra, the amount of MW should not be less than the amount of Basic + Special Allowance as shall be mentioned in the notification.

Kindly guide.

Regards,

Sudha

Hi Pradeep,

Is there some ready reckoner or Excel sheet on the Maharashtra Govt. site regarding shop establishments and minimum wages that mentions everything except the minimum wages? The greatest stupidity is that you have to fill up a form and submit it physically! Why can't they just float an Excel sheet? I'm sure there would be thousands of people like me and Sudha looking out for this information.

Regards,
Pradeep K,
Pune
ICS Pvt. Ltd.

Dear All,

Please find attached the rates of Minimum Wages and Special Allowance in the state of Maharashtra for the period 01.01.2012 to 30.06.2012. Kindly review all the Scheduled Employments, and based on your company's nature of work, the corresponding rates will be applicable.

Regards,
Archit Kulkarni.

Dear Arnab,

Thank you for your guidance. However, the business my company is involved in is not specified in the schedule of employment outlined in the S&E Act. Our company specializes in marine geotechnical/geophysical surveys and offshore construction, with project sites located in various parts of India and overseas, and our head office is based in Thane, Maharashtra. We have employees of all skill levels - highly skilled, skilled, semi-skilled, and unskilled - working with us. Additionally, the clause regarding the minimum wage is not included in the S&E Act. Some members of the management team are of the opinion that since the minimum wage is not specified in the S&E Act, we may not be subject to the Minimum Wage Act. I would appreciate your advice on this matter. It would be helpful if you could provide me with some supporting documents to substantiate my standpoint.

Regards,
Sudha

Dear Sudha,

Even if the clause of Minimum Wage is not mentioned in the S&E Act, employees in the establishment must be paid a gross salary equal to or above the Minimum Wage for the respective state. Please refer to the Minimum Wage Act for more information.

Based on the details you provided, my suggestions are as follows:

I. For your corporate/branch offices, ensure compliance with the provisions of the S&E Act regarding Minimum Wage and all other HR policies.

II. For your employees at project sites, please adhere to the Minimum Wage regulations for "Construction" applicable in the respective state.

Kindly ensure that all employees are fairly compensated in accordance with the relevant laws. If you need further clarification or supporting documents, feel free to reach out.

Regards,
[Your Name]