How Can I Standardize Minimum Wages for Employees Across Different Indian States?

chandrashekar-jewargi
Dear All,

We are an SME with employees PAN India. As per my knowledge, every state has its own minimum wages policy. Our company is based in Karnataka, Bangalore (Zone 1).

I need your help in solving this issue. Is there any chance that I can keep all my employees' minimum wages the same and work it out in CTC, or do I need to follow all state wages policies?

Thank you.
thatsmeajit1983
If you are engaged in any business specified in the Central category like (Insurance, Telecom, Central Govt. Institutions), you are liable to pay the central government minimum wages equal for PAN India. Otherwise, minimum wages for the respective state will be applicable.
Nagarkar Vinayak L
Dear colleague,

The minimum wages of the respective states will have to be followed if the Act is applicable in each state. I suggest, for the first time, you find out which state gives the highest minimum wages and add to that likely changes in D.A. in a year, considering the trend of increase/decrease for the past two years, and pay uniformly to all employees pan India in that category. Review every year, and revise the wages based on changes in the DA.

Regards,
Vinayak Nagarkar, HR Consultant.
praveen446
Hi,

You need to pay salaries as per the respective state's minimum wages. If your business falls under the central category, then you need to pay the central minimum wages. Every state periodically publishes minimum wages in their gazette. Also, you need to maintain registers and records for every state.

Thank you.
Uma sundari
We are an NBFC-MFI with a presence in Maharashtra, Gujarat, Rajasthan, and Haryana, operating branches in various cities within these states.

Classification of Field Employees

Our entry-level field employees are responsible for loan sourcing and EMI collection, using TAB for these processes. We have categorized them as skilled workers; however, some of our peer companies label them as semiskilled.

Minimum Wages Act Consideration

Under the Minimum Wages Act, should we consider them as skilled or unskilled workers?

Determining Classification Zone

Additionally, how can I determine the appropriate classification zone for our organization - Zone 1, Zone 2, or Zone 3?
Pavanactiv
State-wise Minimum Wages

State-wise minimum wages are applicable. Only a few industries fall under the Central Act, such as Oil & Gas, Railways, etc. For example, Indian Railways, Oil India Corporation, ONGC, etc.

Thank you.
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