Minimum Wage Hike in Engineering: How Will It Impact Your Business Costs?

Minimum Wage Update for General Engineering and Fabrication Industry

Please find attached a copy of the TN Gazette dated 26th Oct '16, which is self-explanatory. As per the proposed Gazette notification for the General Engineering and Fabrication Industry, the minimum wage for unskilled workers in District Headquarters, Corporations, and Municipalities will be Rs 10,786.60 per month or Rs 415/- per day once approved by the TN Government after two months (based on the current CPI points).

With the significant increase (approximately Rs 2400 per month) in the minimum wage, additional costs towards PF/ESI contributions, bonuses, gratuity, etc., will also need to be considered. For advance information, please.

Regards,
N. Nataraajhan
Sakthi Management Services
Hp: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

In the last three years, the TN Government has been increasing minimum wages by 22% whenever they are revised. This is the standard percentage they have used for all industries. Just check whether they have applied 22% or more. If it is more than 22%, then a representation can be made.

T. Sivasankaran

Minimum Wages Update for Tamil Nadu Industries

Please find attached a copy of the datasheet related to the minimum wages payable for some important industries in Tamil Nadu from April 1, 2017, along with details of Consumer Price Index points from the Labour Bureau, Government of India for your information.

We are still awaiting CPI points for Karnataka, Andhra Pradesh, and Telangana. Once we receive the CPI points from the Labour Commissioner, we will send the revised minimum wages payable for those states.

A revision of the minimum wage for the General Engineering & Fabrication Industry is pending in Tamil Nadu, and we are expecting the Gazette Notification soon.

Thanks and Regards,

N. Nataraajhan
[Phone Number Removed For Privacy Reasons]
Sakthi Management Services