Confused About Delhi's Minimum Wage Hike: Is It Effective Now or Delayed Until September?

Sir, my question is on minimum wages which have been increased by 27% as mentioned in the gazette notification stating that it will be applicable from March 2017. However, there is still confusion as to whether it should be effective from March 2017 or if there is a stay on this decision until September '17. Please clarify whether it will be applicable or if we should wait until September.

Dear Savita,

The MW rate has been revised by approximately 37% by the Government of the NCT of Delhi.

Implementation Scenarios

There are two scenarios regarding the implementation:

I

This has been challenged by the Chamber of Commerce and Industry in the Hon’ble High Court. The next hearing is fixed for 11th September 2017. However, it is not clear whether the "STAY" is applicable for all or only for the members of the Chamber of Commerce and Industry.

II

Secondly, the Labour Office is insisting on implementing the same in respect of manpower deployed under Delhi Government Establishments (deployed through various contractors and sub-contractors). The Labour Office is pursuing such establishments that are covered under various regulations (S&E Act, CLA Act, Factory Act, etc.).

However, some companies have implemented the same with immediate effect because the MW is revised every year in April. We have instructed our subcontractor for the implementation. We have combined some allowances in the revised Basic. Earlier, we used to pay some allowances (in addition to the notified Basic Wages), but to reduce the extra cost burden, the allowances have been reduced or minimized.

Your establishment can also postpone it, but in case any action is taken by the Labour Office, you would also be required to challenge the same in the Court.

Thank you very much, sir. Your clearance is very helpful. I also spoke to the labor officer, and he also said the same thing.