Differential DA
Almost all State Governments are notifying Minimum Wages for various industries with different wages and DA. There has been a huge difference in wages and DA for different industries. While the rate of DA is common for all categories of employees in a particular industry—from unskilled to managerial level—why should there be a huge difference in DA for different industries? The government, which is notifying different DA for various industries in the same area, cannot assure different prices of vegetables or groceries for workers employed in an engineering industry and construction field of the same area.
In some of the recent MW notifications, the Kerala Government has fixed a uniform DA of Re 1/= per day or Rs 26/= per month per point above 250 points of CPI for various industries. Based on the decision of the Kerala Government, other State Governments should also consider uniform DA across the state for various industries. We enclose a copy of a data sheet relating to Tamil Nadu, which shows that although the base point is the same for all industries, the DA difference is more than two to two and a half times in the same area. The government may fix different basic, special allowance, skill allowance, service weightage, etc., depending upon the nature of the industry, skill requirement, experience, risk involvement in the job, etc., but should try to reduce the difference in DA, so that ultimately workers of different industries should be paid similar DA based on the CPI points. In fact, the Labour Bureau of the Government of India releases the Consumer Price Index for different places based on the prices prevailing in those areas.
Inclusion of HRA in Minimum Wages
The definition of "Wages" under Section 2(h) of the Minimum Wages Act 1948 very clearly states that House Rent Allowance is included in Minimum Wages. The Hon'ble Supreme Court in the Airfreight case has categorically held that Minimum Wages should be calculated as defined in Section 2(h) of the Minimum Wages Act. If there could be a uniform rate of DA and HRA is separately notified as part of Minimum Wages, it could solve the present problem of splitting MW for PF, Bonus calculation on MW, Gratuity, etc.
Members are requested to offer their comments/views on the above matters.
Thanks and Regards,
N Nataraajhan, Sakthi Management Services (Hp: [Phone Number Removed For Privacy-Reasons]; E-mail: [Email Removed For Privacy Reasons])