Are We Classified as Engineering or Residuary Under the Minimum Wages Act? Seeking Clarity

We are manufacturers of chokes and transformers. My question is whether we fall into the engineering category or the residuary category under the Minimum Wages Act. Kindly help.

Please check with the labor office of your state to determine if they have set a minimum wage for employment in Electrical equipment or Electronics. If so, that will be applicable to you. If not, seek clarification from the labor office.

Regards,
Varghese Mathew
Labor Law/HR Adviser
[Phone Number Removed For Privacy Reasons]

Manufacturing of electrical equipment or electronic items is not a scheduled industry under the MMW Rules 1948. Therefore, your manufacturing unit will fall under the residuary category.

What I believe is that you are in manufacturing and not in engineering, i.e., not in designing, building, or maintaining any structure, machine, device, etc., by applying scientific technology.

If you are in the Electronic Exports Processing Zone, then you are in the scheduled industry of SEEPZ.

Regards

If you are involved in the installation, erection, or commissioning of transformers, then engineering rates will be applicable.

Regards.

I think the rates for the engineering industry will apply to any unit that is making machines of some type. However, this does not hold true. For example, all automobile companies pay engineering company rates, not manufacturing rates. Unfortunately, no definition is provided, so it depends on how you wish to interpret it (and how the same is looked up by the labor officer). In general, it is better to take the higher rate (the difference being small) to avoid any controversy.

Hi Keshav,

I am currently engaged in a packing activity in my warehouse. Would this task fall under the category of RESIDUAL?