How Will the Revised Minimum Wages in Telangana Impact Employers and Employees?

Dear HR Fraternity Friends,

Revised Minimum Wages in Telangana

Minimum rates of wages in the schedule of employment "Private Motor Transport," "Construction of Projects Including Dams and Multipurpose Projects," "Stone Breaking and Stone Crushing Operations, Construction or Maintenance of Roads and Building Operations," and "Security Services" have been revised by the Government of Telangana. GOs are enclosed for your reference. The rates specified in GOs shall come into force with effect from the date of publication of this notification in the Telangana Gazette.

Certainly, the revision of minimum wages is a good move for employees working in various schedules of employment; however, there will be an onus on micro and medium employers. In Telangana, the last revision of minimum rates of wages was in 2015. Along with the revision of the minimum rate of wages, DA points prices have been hiked for each skill category in the aforementioned schedules of employment. The least wage for an unskilled security guard is Rs. 18,000 excluding DA. Many other guidelines have been issued along with the revision of the minimum wage.

Please let me know if you need any further assistance or clarification.

Thank you.

Hi Mr. Ramesh,

I am very happy about your contributions to the HR fraternity. I just moved to Telangana for a job search.

Clarification on Incentive and Payment Practices

I have a few points to get clarified:

1. Can we change the extra man-days or OT hours for the workmen to the incentive part of the payment? If so, kindly guide me.

2. As per the Factories Act, we are supposed to pay OT on 26 days, but in practice, it is being paid on 30 days. How can we replace this practice?

3. If any employer is paying 80% on PF and ESIC, are they liable for a penalty? Correct me if I am wrong. If we are changing the contractor due to non-compliance of EPF & ESI (they are paying only 80% on both) and the existing contractor has not paid the compliance of EPF & ESIC in the future, is the principal employer liable? Kindly guide.

4. If any company does not have standing orders, is that an offense? Kindly guide me.