Is It Legal to Pay Below Minimum Wage When Providing Food and Housing Benefits?

Hi Everyone, can anyone tell me if it is compulsory to pay employees at least the minimum wage? Our company also provides food and residential services. However, after deducting these benefits, the salary falls below the minimum wage threshold.

Regards

Will you please read sections 2(h), 4, and 11 of the Minimum Wages Act, 1948? The scheme of the Act recognizes "wages" as defined under section 2(h) and also "wages in kind" under Section 11 of the Act. Reading both provisions together, "wages in kind" can only become part of the "wages" if the conditions provided under subsections (2), (3), and (4) of Section 11 of the Act are complied with.

So, Kavitha, the value of food and residential accommodation provided by the company cannot be taken into account for computing the sum-total of the company wages vis-a-vis minimum wages fixed under the Act of 1948.

I agree with the views expressed by my dear friend Sh. Umakanthan that the value of food and residential accommodation provided by the Company cannot be taken into account for computing the sum total of the Company's wages vis-a-vis minimum wages fixed under the Act of 1948. My understanding is that the Government is empowered to fix different minimum rates of wages taking into account the value of food and residential accommodation provided to the workers. I have come across a notification issued by the Government of NCT of Delhi where they have categorized the workers into four groups and have fixed different minimum rates of wages for them. Four groups have been created in Unskilled, Semi-Skilled, and Skilled categories. The minimum rates of wages issued via their notification no. F. No. 12(142)/02/MW/VII/3124 dated 03.10.2013 are attached here. The categories are divided as follows:

(i) Where neither meals nor lodging are provided

(ii) Where only lodging is provided

(iii) Where only meals twice a day are provided

(iv) Where both meals and lodging are provided

Regards,
BS Kalsi
Member since Aug 2011

I am employed in a company through a contractor on minimum wages in the skilled category (graduates and above). Please provide the rate of basic pay + VDA, HRA, and any other emoluments fixed by the NCT Delhi Labour Commission.

Warm regards,

Ex Subedar Hukam Chand Yadav

[Phone Number Removed For Privacy Reasons]

Respected Subedar Hukam Chand Yadav ji,
The Government of NCT of Delhi has again revised their minimum rates of wages effective from 1st April 2014. A copy is attached herewith for your information. The Government of NCT of Delhi has fixed Rs 11,310 per month for the skilled category (graduates and above), which includes basic and dearness allowance. There is no component by the name of HRA in their notification.

Regards,
BS Kalsi
Member since Aug 2011