Fixing of Minimum wages for Dispatch Assistant in UP office having their company head office in Bangalore

Dear Colleagues,

We have hired a person for the position of office boy at our Lucknow depot. Our head office is located in Bangalore, and we handle salary/wage processing, including payment of PF and ESI contributions to the relevant authorities from the head office. As per Karnataka's minimum wage regulations, I need to set his wage at Rs. 11,300, and as per Uttar Pradesh's minimum wage laws, I need to set his wage at Rs. 7,400. I seek your input on whether I should set his wage based on UP or Karnataka minimum wages when issuing his appointment letter. Your firm opinion on this matter would be greatly appreciated as it will provide valuable guidance and assistance to me.

Thank you.

Your concern is that the authority has set the minimum wage for PF and ESI at 11,300/-. Will you be fixing the minimum wage at 11,300/-, or should you obtain a sub-code for the authority where the minimum wage is 7,400?

Thanks,
Manish

Dear Friend,

Minimum wage is a mandatory limit that you cannot pay less than; however, the MW Act does not prevent employers from paying more. You can pay the minimum wages of UP and you will be legally compliant. Please compare what you are paying for the same job in Karnataka, then you should pay the same to the employee (just a suggestion).

Warm Regards,
Bharat Gera
HR Consultant
9322404765