How Can I Legally Pay Daily Wages in My Mumbai Garment Workshop Without Extra Benefits?

Running a Ready-Made Garment Workshop in Mumbai

I am running a ready-made garment workshop in Mumbai and do not wish to provide facilities like P.F., E.S.I.C., H.R.A., D.A., etc., to my skilled laborers without the headache of dealing with the legal department.

Seeking Legal Compliance for Daily Wages

What is the right way to proceed? I would like to pay them a regular payment on a daily basis. What is the minimum amount I must pay them that will not harm me legally?

You cannot escape the legal liability under the labor laws. Someday there will be an inspection, and your loopholes will be exposed. Please pay the minimum wages applicable to the garment industry in your zone. If the workforce exceeds 20, obtain a PF code number, deduct 10% from their salary, contribute your share, and deposit it regularly. Deduct ESI as well. Additionally, pay HRA if the workforce exceeds 50; the rate is 5% of basic and DA (special allowance). Maharashtra Labor Welfare Fund is also applicable.

Thank you.

It is unfair on your part to evade the legal rights of your workers, and I condemn your effort to misuse this forum to abet your illegal activity. If your total labor strength is 20 or more, you will have no escape from paying these legal obligations. You should not think that paying all these is harming you. You will have peaceful business activity; otherwise, you are going to have sleepless nights. It's your choice. If you deny these rights to your workers, how can you retain those trained workers with you? You will end up proving a penny-wise and pound-foolish attitude.

Regards,
Kumar S.

If you are running a business, ensure that you pay your workers/employees their due shares and contribute to labor welfare schemes such as EPF, ESI, and LWF where applicable. This will help ensure a peaceful life and profitability without facing any penalties or prosecution from the government.

Regards,
RL Dhingra, Advocate
Labour Law Consultant, Delhi
[Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]