Can a Skilled Employee Be Paid Unskilled Wages? Seeking Your Thoughts and Experiences

Please, can anyone tell me if a skilled employee can work for unskilled wages?

Thanks & regards,
Prashant Kumbhar

I think the concept of skilled and unskilled would already be defined under the applicable standing orders. Maharashtra and Karnataka minimum wages notifications a year back had defined skilled as anyone who is capable of working without active supervision. I do not know if other states followed the same definition. However, effectively now in Maharashtra, even low-skill work may have skilled workers if they are working without active supervision.

I think the original query is related to minimum wages. The minimum wages are linked to the job done. So you have to pay wage rates for that work. If the person is skilled but you are putting him in an unskilled job, I guess he would be paid unskilled wages. But the difference between skilled and unskilled wages is about ₹1000 per month. Do you really want to be petty? Why not let him draw skilled wages? It makes little difference to the company, but probably a lot to him.

Understanding Employee Skill and Wage Allocation

The skill of an employee is determined according to the actual job they are performing. The question you raised is more centered on policy matters rather than legal bases. As per the definition of skill under the Minimum Wages Act, the skill of an employee pertains to the job they are performing. If you are assigning them to an unskilled job, then there is a loss in the efficiency and productivity of the organization. Ideally, no organization aims to act in this manner.

Payment of wages for skilled jobs versus unskilled jobs differs. It is up to the organization to determine this distinction.

Thanks,

Mangesh Wakodkar
Aurangabad

Due to his family or financial circumstances, if a graduate person is employed in a company to do the peon's job, he will draw peon's wages only.

Minimum wages are fixed by the State Government based on the all-India average of the consumer price index. The state government is empowered to categorize the skills for scheduled employment in different industries. This categorization is primarily based on the craftsmanship required to perform the task. Some states have also included educational qualifications in determining the minimum wages.

Since wages are based on the job performed and the required skills, one is free to engage a person accordingly. However, if the state notification links categorization with educational qualifications, it needs to be checked before engaging such employees.

States like Karnataka have empowered the Labor Commissioner to decide the wage rates of employees engaged through contractors who carry out similar jobs to workers engaged by the principal employer. This notification falls under Rule 25(iv) of the Contract Labour (R & A) Karnataka Rules. Therefore, you need to check the same concerning your state.

Thanks,

Mritunjay Nath Sahu GM(HR)