Minimum Wages Dilemma: Should Branches Follow State or Head Office Rates?

Dear All,

The company has its head office in Delhi, and branches are located across various states where employees are working. I need advice on whether the company has to pay the minimum wages as per the respective state or the Head Office.

Vinod

Minimum wages applicable as per the respective states are payable to employees where they are permanently employed.

Wages are required to be paid as per the minimum wages of the respective state(s) where the employee, whether casual, temporary, probationary, or permanent, is posted or employed.

In that case, am I required to mention his place of posting in the appointment letter, or should the appointment letter be issued from the respective branches.

Labour laws are common across the country, whereas enforcement is with the states. States have the authority to set the minimum wages, which must be paid in the case of permanent employment in a particular state. However, if someone is visiting a location for a period, they will be paid based on their permanent location wages and not according to the wages of the visited state.

If the employees are paid above the minimum wage, they are appreciated. Since your HO is in Delhi, where the minimum wage is higher than in respective states, it will be beneficial to the employees.

Labour laws are common and the same throughout India. As per concerns regarding minimum wage, it is implemented in company policies. Minimum wage can be implemented where the company legally handles its disputes (state).

Ashutosh
HR Gen.

Yes, you are required to mention the place of posting, which will ascertain the application of minimum wages.