Understanding Minimum Wage Regulations for Public Limited Companies

Hi,

I am Priyanka, working as an HR Executive in a public limited company. Could you please let me know the minimum wage for a public limited company?

Thank you.

Dear Priyanka,

I am sure that you know well that a Public Ltd Company registered under the Companies Act, 1956 can engage itself in any business, trade, service, or manufacturing of its choice, and the suffix attached to it as per its name clause refers to its constitution only. Therefore, without knowing the nature of its activity for which people are employed, one cannot answer your question. Also, you can get the details of minimum wages for your industry by going through the web portal of the Labor Department of the concerned State or Central Government as the case may be.

Dear Priyanka,

I am not able to understand your query. There is no minimum wage stipulated for the staff/employees/executives working in any Public Ltd company. Instead, the wages of those employees are governed by the wage board. Furthermore, the workmen engaged by the contractors in a Public Ltd Company are covered under the concept of minimum wages.

Now, you need to determine whether your PSU is state-owned or centrally owned. If it is state-owned, then the rate is as per the state's notification under minimum wages. Similarly, the rate notified by the central government under the Minimum Wages Act needs to be considered. Additionally, you should check in which category (A, B, or C) city the PSU is located.

Thank you.

Dear Priyanka,

Minimum wage is declared by the Central/State governments through gazette notifications every six months. It is important to note that minimum wages are not determined by the status of the employer (e.g., Public Limited Company, Private Limited Company, Partnership Firm, and Proprietary Firm). These notifications are issued based on specific jobs or the skills of the employees, such as unskilled, semi-skilled, skilled, highly skilled, etc.

Warm Regards,
Bharat Gera
HR Consultant
9322404765