Does Minimum Wage Law Cover Regular Employees on Payroll in Gujarat, India?

Dear Seniors, Does the minimum wage apply to regular employees who are on the payroll? My boss told me that the Minimum Wage Act only applies to daily wage workers, not regular employees. For example, if I recruit any lower cadre employees (such as a sweeper) and we decide his CTC to be Rs. 5,000.00 (including all perks) per month, with a gross pay of Rs. 4,800.00. Does my organization violate the rules of minimum wages? Currently, in Gujarat, India, the minimum wage is Rs. 276.40 per day. I am working with an NGO in Gujarat, India. Please guide me.

Regards,
Saurabh

Certainly, you are violating the Minimum Wages Act of 1948 because of the wrong assumption of your boss that minimum wage rates are applicable only to daily wagers and not to regular employees doing the same work. Once the employment is brought under the schedule of the Minimum Wages Act, you are bound to pay wages to all employees irrespective of the status of their employment at rates not less than the minimum wages fixed by the Appropriate Government.

Dear Mr. Saurabhgdave,

Please note that the question does not arise if the employer has engaged the employee on a daily wage or regular basis. If the employee falls under the category of Scheduled employment under the Minimum Wages Act - 1948, you have to comply accordingly. Otherwise, it may lead to a violation of the law, and the employer may have to face legal complications.

Thanks & Regards,

V R RAO PULIPAKA.

Just check Gujarat rules to determine whether the Act is applicable to NGOs. Alternatively, ask the labor officer through your friend whether it applies to NGOs. Since NGOs are not offices of profit, the Act may not be applicable to your NGO.

Please ignore my above reply:

NGO is an organization that is not a shop, factory, or establishment. Therefore, the Minimum Wages Act is not applicable to you, unless you do not possess a registration certificate under the Shops Act.