Are Part-Time Workers Entitled to Minimum Wage or Paid by Hours Worked?

Can anyone kindly clarify whether Part-Time Workers in an establishment need to be paid a salary as per The Minimum Wages Act, 1948, or on a pro-rata basis for the hours worked?

Dear Ramamoorthi,

You have not clarified the designation/nature of work performed by part-time employees in your establishment. What are the terms and conditions of appointment? What is the rationale for the appointment of part-time employees?

Thank you.

Sorry for not providing full information. They are housekeeping staff who do not work full-time. There are two of them, and they don't have more than two to three hours of work each day.

Dear Ramamoorthi,

It is always advisable to pay minimum wage as housekeeping activity is a regular process and not seasonal or piece-rated. You need to look into engaging them for full-time work in other areas as well.

Minimum Wages for Part-Time Employees

Though the service of part-time employees is protected under the ID Act, the Minimum Wages Act 1948 does not distinguish between full-time and part-time employment. Fixing of minimum wage rates under the Minimum Wages Act 1948 is done on the basis of time work or piecework. Minimum rates of wages may be fixed on the basis of the wage period, namely, hourly, daily, monthly, or such other larger wage period as may be prescribed. However, I have not come across or heard that rates of wages are fixed on an hourly basis in any state in India.

Wages for Less Than Normal Working Day

The provision as per Section 15 of the Minimum Wages Act 1948, which deals with wages of workers who work for less than the normal working day, will not be applicable to part-timers according to my view. However, the industry practice is, when you employ a person part-time, you pay him on a pro-rata basis.

Maharashtra Shops and Establishment Act 2017

Recently, in the Maharashtra Shops and Establishment Act 2017, part-time employment is distinguished or recognized. It has been prescribed that the wages payable to a part-time worker shall be computed by dividing the per-day rate of minimum wages applicable to that scheduled employment by 8 hours with a 15% rise in it, or by dividing the prevailing rate of per-day wages fixed for permanent workers doing similar nature of work in that establishment by 8 hours with a 15% rise in it, whichever is higher. It has also now been prescribed that no part-time worker shall be allowed to work overtime under any circumstances. These conditions appear to be aimed at preventing the misuse of the engagement of part-time workers.

Dear Ramamoorthi,

As per Rule 27 of the Karnataka Minimum Wages Rules, 1957, Scheduled Minimum Wages are applicable for part-time employees or employees engaged on an hourly basis. Accordingly, you have to pay the applicable minimum wages proportionate to the hours of work performed. Furthermore, you have to extend all statutory benefits to part-time employees proportionately, such as PF, ESI, bonus, leave, gratuity, etc., as applicable to regular workers.

Thank you.

Dear Azim ji,

I am not interested in increasing entries on this site unnecessarily. The current topic is on minimum wage rates for part-timers, and your query is on the Maharashtra S&E Act 2017. You had asked the same question in another thread where I provided a response as well. Kindly refer to the link below to find my reply: https://www.citehr.com/showthread.php?t=595801

Dear Sir,

Is there any government rule that states how the minimum wages should be distributed in a salary structure, as this affects PF and gratuity? For example, is it mandatory to allocate the entire minimum wages amount to "BASIC + DA" for all states? Please provide clarification.

Thank you.

Dear Anamika,

Please refer to the minimum wage notifications of the respective states.