Minimum Wages & Other Levies

iamshailesh
What is the Minimum Wage applicable across India? What other levies (eg. PF, Gratuity, ESIC, etc) are to be taken into consideration when considering the total wages for a contractor/ security guard across India?
Thanks & Regards,
Satish Kumar Bhargava
Every Act has different definition for the wages/salary for the relevant purpose. It is not uniform across the Country as well. The law does not discriminate between contract labour or direct labour. There is certainly certain controversy in r/o Security Guards after the decision in G4S case. It is pending in Supreme Court for final outcome. However the Minimum Wages and basic wages for the purpose of EPF are not similar. Nor the design of the EPF guarantees for any min. contribution. Therefore one should not think of a single thumb rule for the term of wages while dealing with the different Laws.
saiconsult
Each state notifies minimum wages establishment wise for various classes of employees working in the said establishment. thus minimum wages cannot be uniform across Inida except for establishments falling under the control Central Government.The other statutory dedcutions labour welfare fund and professional tax.
B.Saikumar
HR & Labour Law advisor
Mumbai
saswatabanerjee
There is no concept of uniform min wages across the entire country.

Instead, each state decides minimum wages, which are generally notified every 6 months. The notification is industry wise and for each skill level.

However, since you are in Maharashtra , the salary of security guards will also be governed by the wage rates specified by the guard board act. You can not pay less than the rates specified by the guard board even if minimum wages is lower.

Further, all statutory dues (PF, esic, cess to guard board) must be paid,

You also need to provide for gratuity that would be payable after 5 years of work.

In deciding security guard charges paid to security contractors, generally amounts are added for uniform, shoes, which are to be provided free of cost to the security guards. Further ensure you have factored in a reliever cost.

Please note that no security guard can be given a shift more than 8 hours as per law (12 hour shifts, though common, are illegal). 1 weekly off is required to be given for each security guard. If he works on weekly off, then a compensatory off in addition to double rate overtime is payable.

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