Re: Kerala Shops & Establishment Minimum Wages - W.E.F 01st April 2014

Hi Friends,
Can anyone send me the Minimum Wages of Kerala Shops & Establishment With Effect from 01-04-2014
Thank You
Manoj

Dear Member,
The latest notification of minimum wages for shops and commercial establishment was published way back in 2009. There after no minimum wages notification is published. Further please specify the nature of business your company is doing so that I can help you further.
PFA the notification.

For security services, we have separate minimum wages notification. Please find the attachment.
Madhu.T.K

Sir,
Please explain CPI with Base 1998-99=100 and 2011-12=100. and what is the difference between this two......

Indices are revised periodically considering the increase in the prices of goods. With this old indices will be replaced by the new versions of indices. Therefore, when new series of indices are published with 2011-12 =100 as the base, the old series of 1998-99=100 will become outdated. That does not mean that we should also redo the Dearness Allowances based on the new series but we can continue to use the same base of index. There will be a linking factor attached to index number and that can be used to get the index number of the previous base. For example, the linking factor for Ernakulam district is 2.03 under the new series and the CPI is 139. Multiplying 139 by 2.03, we will get the CPI of Ernakulam district of Kerala under the immediate previous base, ie, 1998-99= 100 and that is 282. Similarly the linking factor of 1998-99 for the previous index number (1970 series) is 9.92. An establishment following the old index can get the CPI in the old series by multiplying 9.92 by the 1998-99 series.

An existing establishment calculating the DA using 1998-99 series can follow the same series until a new DA is fixed by merging a portion of the DA with the basic pay of employees. The Statistics department usually publishes CPIs based on two series, current as well as old series. If the old CPIs are not available you can calculate it by multiplying the linking factor with the new CPI. The ultimate result will be the same.

Example:

DA is based on CPI under 1998-99 series

DA is Rs 24.90 per point above 130 points

The establishment is situated in Ernakulam district

As per the information available, the CPI for Ernakulam under 1998-99 is 282

Therefore, the DA will be 282-130 X 24.90 = Rs 3785

Suppose that the establishment follows new series, ie, 2011-12=100, then the DA will be as follows:

CPI under the new series: 139

DA will be available for 9 points, that is the number of points above 130 points will get DA at the rate of Rs 24.90 and the amount of DA for the month will be Rs 224 {(139-130) X 24.90}

Following the new series without adjusting the basic salary will lead to heavy loss to workers. Therefore, before we switch over to the new series we have to revise the Basic salary by increasing it by the amount of DA lost. Alternatively, we can continue to follow the old series of indices.

Madhu.T.K

Associations of apartment owners in multi-storied buildings have to engage workers for cleaning and other duties for the maintenance of the common area in the respective buildings. Are such workers covered by the Minimum Wages Act in Kerala? If so, under which category are they included? If not, which provisions would apply to them?

Association of Apartment Owners is not a commercial establishment. In Management of Som Vihar Apartment Owners Housing Maintenance Society Ltd Vs Workmen (2001 LLR 599 (SC)) the Supreme Court had held that when personal services are rendered to the members of the Society constituted for these members only, its activities cannot come under the purview of Industrial Disputes Act. Similar view was expressed by karnataka High Court in Smt. Rachana Gopinath Vs The State of Karnataka (2016 LLR 864) in which it has been categorically said that such associations are not commercial establishments.

However, if the housekeeping services are outsourced to some third party as it is seen in the case of many apartments now a days, they should be paid wages at the prescribed minimum rates. This is because, though the association is getting the services these housekeepers as personal services they belong to an establishment which is coming under the Shops and Commercial Establishments Act. As such their services to the Apartment Association cannot be treated as personal service. Therefore, they are entitled to get wages at the rate as applicable to their category. Attached please find their minimum wages.

Dear Sir,
Thank you for the inputs,
Till I see these notifications, I was in an impression that minimum wages for various categories of employment are above Rs.350/-. But still the practices and requirements in paper is differ much in Kerala like any other state...Really surprising.

Daily rate of wages (basic plus dearness allowance) for unskilled workers in the organised sector will be around Rs 320 approximately. The new rate is yet to come and that will certainly cover the rate declared by the central government recently. If you compare the rate in other states, you will find that even the skilled workers do not get the rates prescribed for unskilled workers in Kerala. In the unorganised sector the rate is above Rs 750 per day in Kerala!!
Madhu.T.K

Hi Friends,
Can anyone send me the Minimum Wages of Kerala Shops & Establishment updated files. All categories of employees...
Thank you....