Understanding Maharashtra's Minimum Wage Changes: Is the DA Increase Really Just Rs. 33?

I went through the notification pertaining to Minimum Wages for Maharashtra applicable from July-Dec 2014 for shops and establishments. The new DA is Rs. 2214/- per month, and the existing one, applicable between Jan-June 2014, was Rs. 2181/-. Does it mean the increase per month is just Rs. 33?

Base Rate Change Inquiry

Is the change in the base rate from Rs. 5000/- per month to Rs. 6600/- (for unskilled) applicable to shops and establishments as well, or only to the engineering industry? Please help me understand this.

Thanks,
Gauri

I went through the notification pertaining to Minimum Wages for Maharashtra applicable from July-Dec 2014 for shops and establishments. The new DA is Rs. 2214/- per month, and the existing one, applicable between Jan-June 2014, was Rs. 2181/-.

Does it mean the per month increase is just Rs. 33? Is the change in the base rate from Rs. 5000/- per month to Rs. 6600/- (for unskilled) applicable to shops and establishments as well, or only to the engineering industry? Please help me to understand this.

Thanks,
Gauri

Dear Gauri, I appreciate your highlight as it's very unusual that the DA has been increased to just INR 33/- per month. Let's wait and see what other fellow members have to share on the same.

Request for Input from Fellow Members

Fellow CiteHR members, please share your inputs and observations on the same.

Best Regards,
Vaibhava

I don't see any point in your surprise. Do you expect every time (after six months) there should be a hefty increase in Special Allowance/DA? Do you know how this Special Allowance/DA is calculated every six months? Based on the CPI number of select essential items (decided by respective State Governments), this Special Allowance/DA is calculated and accordingly revised to tame the inflationary impact.

Hope I have addressed your query. If you still have doubts, please revert with valid points.

Thanks,

Anil Sharma

Our company is in the engineering industry and is located in Zone 3. Let me explain why the Government of Maharashtra has increased such low DA/Special allowances.

Old Minimum Wages Structure

Our old minimum wages were as follows:
- Unskilled: 3130 + 2899 = 6029
- Semi Skilled: 3230 + 2899 = 6063
- Skilled: 3330 + 2899 = 6229

Revised Minimum Wages Structure (March 2014)

In March 2014, the minimum wages structure was changed to:
- Unskilled: 6000 + 1624 = 7624
- Semi Skilled: 6500 + 1624 = 8124
- Skilled: 7200 + 1624 = 8824

Direct Increases in Minimum Wages

The government made the following direct increases in minimum wages:
- Unskilled: 1595 rise
- Semi Skilled: 2101 rise
- Skilled: 2595 rise

Currently, the DA/SA for the engineering industry is Rs. 1652/-, meaning only a Rs. 28 increase. Why only 28 rupees? Because the government has already raised the basic wages by approximately Rs. 1500/-, Rs. 2000/-, and Rs. 2500/-. Therefore, the government has already imposed a burden on employers and does not intend to add an additional burden. This is the reality.

Regards,
Arun J.

Yes, there is an increase of ₹33 per month in the minimum wage rate in shops and establishments. There is no change in basic rates.

On what basis did you feel that the basic rates applicable to shops and establishments are the same as those in the engineering industry?