Is minimum wages applicable for non profitable societies (NGO)

Sir,

Our organization is a non-profit registered organization under the Societies Act, carrying out programs for HIV/AIDS children. To facilitate our programs, we have appointed a few staff members as counselors, ANM nurses, and outreach employees.

Kindly guide me regarding the application of the Minimum Wages Act to our organization. If there are any specific written rules, could you please provide them as an attachment?

Thank you,
Vijayakumar
9701038820

Dear Vijayakumar,

Any activity partaking in the character of an industry would become an industry, whether there is a profit motive or not, and the paid employees therein would be covered by the respective Labor Laws. The societies registered under the Societies Registration Act, 1860, or any other similar State Law, if they employ 10 or more employees, are covered by the Payment of Gratuity Act, 1972. If their head office or branch offices are situated within the geographical area to which the State Shops & Estt Act applies, then they would be considered an establishment under the same, and hence there would be an automatic application of the Minimum Wages Act, 1948 as well. Therefore, please refer to the minimum rates of wages fixed by your State Government for employment in Shops and Establishments and implement them for your paid employees according to the posts they hold in the organization.

Thank you.

Sir,

Thank you very much for your prompt reply and clarification to my posting.

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