Minimum Wages Confusion: Do State Laws Apply to Employees Outside Delhi?

Dear Sir/Madam, A company has its registered office in Delhi and branches in other states such as UP, Maharashtra, Rajasthan, etc. The company is registered under PF and ESI. Minimum wages, as prevailing in Delhi, are applicable to employees working in Delhi. Could you please clarify whether minimum wages will apply state-wise to employees working in other states, or if the minimum wages of Delhi will apply to all employees as we are a Delhi-based company, regardless of the employees' workplace? Also, are sub-codes allowed in PF state-wise as in the case of ESI?

Thank you.

Dear colleague,

Minimum wages of the respective states and concerned employments as per the schedule attached to the state acts/rules, as well as the skill category of employees, will apply. Please check the respective state's minimum wages act/rules.

Regards,
V.L. Nagarkar
HR Consultant

You can apply for PF and ESI sub-code numbers at your branch offices located in other states like UP, Maharashtra, Rajasthan, etc.

Please let me know if you need any further assistance.

Minimum Wage Compliance Across States

As per the law, state minimum wages are required to be paid in the state where the employee is posted, located, and working.

However, you can also pay Delhi minimum wages if they are equivalent to or more than the state of posting of the employee.

If you transfer the employee from one state where the minimum wages are X+1 to a state where the minimum wages are X, then in that case, you have to continue paying X+1 to the said employee. You can't reduce the wages that he is already drawing.

If you transfer the employee from the state where the minimum wages are X to a state where the minimum wages are X+1, then in that case, you will have to pay X+1.