Central Govt Or State Govt Wages Applicable For Contract Labour .

farukh ali
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.
K.P.Mohanasundaram
Hi,

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.
pdmatta@gmail.com
Hi,

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.
rk3677
Private companies with pan-India presence have to follow state or central regulations.

Thank you!
ssushr
For Ordnance Factory, Central Govt is the appropriate government under the Minimum Wages Act and also in all applicable labor laws as it is clearly by or under the authority of the Central Govt.

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 Govt, i.e., Assistant/Regional Labour Commissioner (Central). However, for the Minimum Wages Act, the State Govt is the appropriate government because Pvt banks are not by or under the authority of the central govt as they are independent companies registered under the Companies Act. Whereas under the definition of the appropriate govt of the Contract Labour Act, the Central Govt is the appropriate government for banking companies; therefore, the banks are taking registration under the CL Act from the labor department of the Central Govt.

Farukh bhai follows the minimum wages fixed by the Central govt and DA declared by the Chief Labour Commissioner (Central), New Delhi, every April and July, available on the website www.clc.gov.in.
ssushr
Correction: VDA is declared by the Chief Labour Commissioner (Central), New Delhi every April and October.
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