Are Minimum Wages Fair for White-Collar Workers? Confused About Pay Discrepancies

I would like to know if minimum wages are applicable to white-collar employees. The doubt arises when I found an undergraduate who was employed as a peon/office boy, with a pay of 8k, while at the same time found an M.Com graduate who has been in the system for the past 8 months drawing only 5k. I raised this issue to her reporting boss who said for the blue-collar (office boy), we must follow the Minimum Wage Act. I don't understand the logic. Please suggest.

Understanding the Applicability of the Minimum Wages Act

The Minimum Wages Act does not cover individuals in managerial, administrative, and other white-collar jobs. The salary is not the distinguishing factor here; rather, it is the nature of the work performed by the employee that differentiates them and determines whether they fall under the purview of labor law. Additionally, the education or degree of the employee is also not a distinguishing factor.

Regards,

Dear Friend,

The fixation of minimum wages is not determined by educational qualifications but rather by the scheduled employment at which an individual is employed.

Understanding the Case of the M.Com Graduate

Now, for the case of the second employee with an M.Com qualification, you need to examine his job profile. It is logical that an individual with a higher qualification should be offered a better job. As for the minimum wages, peons or similar profiles are considered "Unskilled" workmen in the scheduled employment. It is my understanding that the gentleman with a Master's qualification should have been appointed in a higher grade within your organization, so obviously, his gross salary would be more than that drawn by any employees at the "Unskilled level." As such, if Rs. 8000 is the rate of minimum wages notified by the labor department of your state in unskilled employment, the minimum wage for higher-grade employees should be more than Rs. 8000.

Applicability of Minimum Wages

Also, it's important to state that the concept of Minimum Wages determines the minimum gross salary to be offered to any employee, and as such, it is applicable to all forms and levels of employment. Please refer to the latest notification of Minimum Wages as prescribed by the labor department of your state to properly fix up the gross salary for all types of employment.

Regards.

Thank you for the suggestions. I have checked with a qualified legal person who said there is no minimum wage for white-collar staff. I doubt that aspect, as this would be an injustice done. The job profile of that M.Com graduate involves claim settlement, voucher entry, etc. In short, all clerical cum back-end operations.

The minimum wage has nothing to do with white-collar jobs and blue-collar jobs. The minimum wage is decided by the state government, which notifies the minimum wage that should be given to each class of employees. Even minimum wages are fixed for white-collar jobs as well. For example, the Kerala government has notified the minimum wage for software professionals, which also includes B.Tech holders who are white-collar employees.

Kind regards