Minimum Wage Revisions: Are Companies Required to Adjust Salaries Every Time?

Hello seniors,

Is it compulsory for companies to revise minimum wages whenever a minimum wage revision notification is issued by labor law? I don't think all employers increase their employees' salaries twice a year. Please clarify this.

HR EXECUTIVE
VERMA S
DELHI

The minimum wages are revised every six months, and every employer is required to follow it. Most of the well-known companies give salaries to their employees, which are higher than the minimum wages, wherein they don't require to increase every six months.

Dear Clarification-Seeker,

Your Query

Is it compulsory for companies to revise minimum wages whenever a minimum wage revision notification is issued by labor law? I don't think all employers increase their employees' salaries twice a year. Please clarify this.

Position

It is mandatory for all employers covered by the provisions of the Minimum Wages Act to pay/disburse the applicable amount as notified by the respective Government Notification/Gazette to employed persons on their muster roll/engaged through contractors.

There is no exemption or immunity for any employer from paying/disbursing the minimum wages notified, and any failure to do so constitutes "an offence" punishable by law.

All employers are required to proceed with paying the prescribed minimum wages to avoid penalties and other repercussions.

Team Kritarth is willing and ready to assist with further clarifications/help if required.

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6.6.17

Dear,

Under the law, an employer is obligated to pay the prescribed minimum wages. Whenever it is revised (every six months), the increase must be passed on accordingly to the employee. It is an offense under Section 22 of the Minimum Wages Act.

Thanks,
S. Sensharma
Industrial Law Consultant, Meerut