Understanding Pay Structure Demands: How Should We Handle Casual Workers' Requests?

Dear All,

We are handling manufacturing units, and one of the units has casual workers. However, we are paying as per the U.P minimum wages but providing only two things, i.e., Basic and VDA on gross salary, and also deducting PF on the gross.

The workers are demanding to provide basic, VDA, HRA, CCA, etc. Can anyone explain the structure of the salary?

Thank you.

Dear Shailendra,

The very nomenclature "Casual Labor" connotes the intermittent engagement of workmen in incidental works only. Besides, the question of structuring wages would arise only when the employer has the necessity to reduce his indirect financial commitments in the long run due to the periodic revision of wages. To my knowledge, no employer would engage in structuring the wages of casual labor intermittently involved in incidental activities except for statutory compliance. When you are complying with the minimum wages set by the State Government, which already includes basic and VDA, I am unable to understand the justification behind the casual labor's demand for components like HRA, CCA, etc., additionally.

Hence, naturally, it leads one to the following two conclusions:

(1) Though they are referred to as casual labor, they should have been employed in jobs of a permanent nature, possibly with intermittent breaks in service alongside the permanent employees of the manufacturing unit.

(2) They are paid consolidated wages at the level of the statutory minimum wages.

Please correct me if the above conclusions are inaccurate concerning the actual situation prevailing in your industry.