Is My NGO Violating Minimum Wage Laws in Gujarat? Seeking Guidance on Compliance

Dear Seniors,

I have been working in a Gujarat-based NGO. Recently, the Government of Gujarat has increased the minimum wage by Rs. 10.40 per day. Now, the minimum wage in Gujarat is Rs. 278.40 per day for unskilled workers in Zone II, making the monthly pay Rs. 7238.40 for unskilled workers.

I have gone through the Notification of the Gujarat Government dated 26 December 2014. There are various categories of schedules (such as employment in drilling operations, hospitals, employment in electronics, etc.). However, I did not find any schedule for NGOs.

I am unsure if the Minimum Wage Act of Gujarat applies to my organization (NGO) or not. For example, if I recruit any lower cadre employees (such as a sweeper) and we decide on a CTC of Rs. 5,000.00 (including all perks) per month, with a gross income of Rs. 4800.00, would my organization be violating the rules of minimum wages?

My NGO is registered under the Bombay Public Trust Act, 1950. Could you please guide me on this matter?

Regards,
Saurabh

You have not mentioned the activity or nature of work by your NGO. The criteria for the applicability of the Minimum Wages Act is not whether the establishment is an NGO or not. The criteria are Schedule employment, i.e., the nature and activities of your establishment/industry/NGO. The applicability of the Minimum Wages Act to an NGO will depend on its nature and activities. In case the NGO performs activities that fall within the ambit of Scheduled employment/industry as described in the Minimum Wages Act, the Act will apply. Otherwise, it will not.

Dear Saurabh,

First, do you have a registration certificate under the Shops Act? If no, then the act will not be applicable to you. The nature of your work will also not come under any scheduled employment. On this count, also, the act will not be applicable to you.

Shrikant