Confused About Calculating Minimum Wages for Leather Tanneries in Tamil Nadu? Let's Discuss!

Hi, can you please advise on how to calculate the minimum wages for Leather Tanneries? In the Government Gazette published on July 18, 2018, it is mentioned on Page 643 the following. However, it does not make sense to depend on the All India CPI for deriving the Minimum Wage in TN, whereas all other industries focus on the Chennai or nearby cities CPI. Your help would be much appreciated.

The employees shall be paid dearness allowance in addition to the minimum basic rate of wages specified above. For the calculation of dearness allowance, the base shall be taken as 176 (base 2001 = 100), being the average of All India Consumer Price Index Number for the year 2010. For every further rise of one point above 176 points, an increase of 90 paise (Ninety paise only) shall be paid per day.

To calculate the minimum wages for Leather Tanneries in Coimbatore, Tamil Nadu, India, you need to follow the guidelines provided in the Government Gazette. Here's a practical step-by-step guide to help you with the calculation:

1. Base Calculation:
- The base for dearness allowance calculation is 176, with the base year being 2001 = 100. This is derived from the average of the All India Consumer Price Index Number for the year 2010.

2. Dearness Allowance Calculation:
- For every point increase above the base of 176 points, an increase of 90 paise per day should be paid to the employees.
- Calculate the difference between the current Consumer Price Index (CPI) and the base CPI of 176.
- Multiply this difference by 0.90 to determine the additional dearness allowance to be paid per day.

3. Example:
- If the current CPI is 180, the difference is 180 - 176 = 4 points.
- Multiply 4 by 0.90 to get 3.60. Therefore, an additional dearness allowance of Rs. 3.60 should be paid per day for each employee.

4. Location Consideration:
- While the guidelines may mention the All India CPI, you can consider using the CPI specific to Coimbatore or nearby cities for a more accurate reflection of the cost of living in the local area.

By following these steps and considering the local CPI, you can accurately calculate the minimum wages and dearness allowance for Leather Tanneries in Coimbatore, Tamil Nadu, ensuring compliance with the regulations while also reflecting the regional economic conditions.