Contract Labours Wages, Can Be Reduced ?

Dear sir/Madam,

Greeting for the day,

presently i am working in a Manpower Services Industry and one of my client saying that, Salary can be adjusted from other allowances to minimum wages Example : x person getting 15000/- PM including Basic and DA (Minimum wages) but this year minimum wages has been increased 7500 to 12000 (Basic +DA) therefore our client saying that, it can adjusted from allowances and gross salary should be same.

I have checked with our seniors they were saying that, Labour contract wages can not be changed and whatever paid salary it should be same and what ever minimum wages increased pertaining state government and accordingly minimum wages to be paid revised.

Kindly give your valuable inputs and if any awarded in any court kindly share the details as below mail id [Login to view]

Your client's view is correct. As per the ratio decidendi of the judgment of the Supreme Court in AirFrieght's case the sum total of the industry wages should be equivalent to the sum total of the statutory minimum wages.But the components of the industry wages should not be the excluded ones mentioned in the definition of the term " wages " u/s 2 (h) of the MW Act,1948.