Minimum Wages for Contract Workers: Should We Follow Central or State Government Rules?

Our company is rendering contract services for an ordnance factory, which is a Central Government organization. Please clarify whether the applicability of Minimum Wages is as per the Central Government Act or the State Government Act. Request your guidance in this regard.

Minimum wages shall be as per Central Acts (authority: Assistant Labour Commissioner (Central)) for the establishments/organizations under central government jurisdiction and the rest under State Acts.

Thank you.
Regards.

It is very clear where your establishment is registered. If it is registered with the Central Government, then Central Minimum Wage rates will be applicable to you. If it is registered with the State Government, then State Government rules would be applicable to you.

Private companies with pan-India presence have to follow state or central regulations.

Thank you!

Applicability of Minimum Wages for Ordnance Factory

For Ordnance Factory, the Central Government is the appropriate authority under the Minimum Wages Act and all applicable labor laws, as it operates by or under the authority of the Central Government.

The reasoning given by Mr. Pdmatta is not correct. The applicability of Minimum Wages is not always related to a license or registration under the Contract Labour Act. For example, all private banks are registered under the Contract Labour Act with the Central Government, i.e., Assistant/Regional Labour Commissioner (Central). However, for the Minimum Wages Act, the State Government is the appropriate authority because private banks are not by or under the authority of the Central Government as they are independent companies registered under the Companies Act. Whereas under the definition of the appropriate government of the Contract Labour Act, the Central Government is the appropriate authority for banking companies; therefore, the banks are taking registration under the CL Act from the labor department of the Central Government.

Farukh bhai follows the minimum wages fixed by the Central Government and the DA declared by the Chief Labour Commissioner (Central), New Delhi, every April and July, available on the website www.clc.gov.in.

Correction: VDA is declared by the Chief Labour Commissioner (Central), New Delhi every April and October.