Confused About Wage Standards for Construction Workers? Seeking Advice on Central vs. State Rates

Wage Payment Query for Construction Project

This is Ramu, working as Deputy Manager-HR in the manufacturing industry at Vijayawada, AP. Our industry is starting an expansion project on the same premises and has contracted a construction company for the construction of factory buildings. Our industry falls under the Central Labour Act. The construction company is paying the workers' wages as per the Central Labour Department notification (Construction Wage Board). However, we are advising them to pay wages as per the Contract Labour Wages notification. The details are as follows:

Wage Comparison

Construction Wage Board (Central) | Contract Labour Minimum Wages (State)

Unskilled: Rs. 312 per day | Rs. 305.54 per day

Semi-skilled: Rs. 353 per day | Rs. 360.65 per day

Skilled: Rs. 414 per day | Rs. 442.65 per day

Except for the unskilled category, the remaining categories are on the higher side in State Contract Labour Minimum wages.

My query is, which wages do we have to pay? The construction company is a registered contractor under the Contract Labour Act (Central).

Respected seniors, kindly give your suggestions on this issue.

With regards,

Ramu

As per the situation described, when determining the minimum wages to be paid to the workers employed by the construction company, which is a registered contractor under the Contract Labour Act (Central), the following steps should be considered:

1. Legal Compliance: Ensure compliance with the relevant labor laws, specifically the Contract Labour Act (Central) and any associated regulations or notifications regarding minimum wages.

2. Applicable Wage Rates: Compare the wage rates specified by the Construction Wage Board (Central) and the State Contract Labour Minimum Wages. In this case, since the construction company is a registered contractor under the Central Contract Labour Act, the wages prescribed by the Contract Labour Wages notification for the state should be followed.

3. Wage Category: Determine the appropriate wage category (unskilled, semi-skilled, skilled) based on the nature of work performed by the workers on the construction project.

4. Payment Calculation: Calculate and ensure that the workers are paid the minimum wages as per the Contract Labour Wages notification for the state, considering the specific category of work they are engaged in.

5. Communication: Clearly communicate with the construction company regarding the requirement to adhere to the State Contract Labour Minimum Wages for the respective categories of workers involved in the construction of the factory buildings.

By following these steps and ensuring alignment with the Contract Labour Act (Central) and relevant state notifications, you can appropriately determine and ensure the payment of minimum wages to the workers engaged in the construction project.