Minimum Wage Confusion: How Do I Know if Central or State Rates Apply to Workers?

Dear all,

Today, I am confused about the central and state minimum wage. How can I determine which minimum wage is applicable for workers - the central or state minimum wage rate?

Definition of 'Appropriate Government'

The definition of 'Appropriate Government' holds the answer to your query. The Act defines 2 (b) "appropriate Government" as follows:

(i) In relation to any scheduled employment carried on by or under the authority of the Central Government or a railway administration, or in relation to a mine, oilfield, or major port, or any corporation established by a Central Act, it is the Central Government.

(ii) In relation to any other scheduled employment, it is the State Government.

So, concerning most industries except railways, mines, oilfields, major ports, and corporations like LIC, it is the State Government. If you have any specific unit in mind, please provide more details for further advice.

To help you understand, Mr. KK has provided the description and provisions under which payment of minimum wages is determined as per the State or Central regulations. In simple terms, if you have obtained registration or a license for the engagement of labor from the Central authority, you are required to pay based on the central rate of minimum wages. Otherwise, you should follow the state rate of minimum wages.

Dear Friend,

In the Constitution of India, there are 3 lists in the schedule: 1. Central List, 2. State List, 3. Concurrent List. Subjects falling there help in deciding the appropriate Government. There are judgments by various courts on the issue. Mr. Mohanty has given one more criterion to fix the issue.

Warm Regards,

Bharat Gera
HR Consultant
9322404765

The cement industry is obtaining a license from the Central Government. The question arises whether the minimum wages set by the Central Government are applicable to the cement industry.