Minimum Wages Dilemma: Should We Follow Delhi or Noida Rates for Our Employees?

Hi, I want to know if our organization is established in Noida, UP, but our employees will work in Delhi. Will minimum wages be applicable according to Delhi or Noida? Kindly reply ASAP as it's urgent.

Under labor jurisprudence, the place of employment of the employee determines the territorial jurisdiction for the application of any employment aspects, such as holidays, wages, and the legal forum for grievance redressal.

Therefore, regardless of where the corporate or head office of the employer is located, the minimum wages applicable are those of the usual place of employment only. In your case, the Delhi minimum wages would apply only to an employee who normally works there.

Since there is a substantial difference in the minimum wage of Delhi and that of Noida (U.P.), if the employee is required to work at both places, i.e., at Noida as well as Delhi, then you can pay the wages of U.P.

- S.K. Mittal
[Phone Number Removed For Privacy-Reasons]

Dear Swatisri@123,

It would be better if you shared more clarification regarding:

1. What type of job do the employees do in Delhi?
2. Is it a field job or fixed at any particular place in Delhi?
3. Who and how controls their activities?
4. Do employees go to other places (states) as well?
5. Where is their attendance marked?

On the basis of your limited information, Umakanthan sir has well explained the applicability of MW.

I do not fully agree with Mr. S.K. Mittal's suggestion that since Delhi MW is high and employees work in both places, you should apply UP Minimum Wages.

As a Manager-HR, we try to figure out cost-optimized payout, but that should not be done by abolishing the statutory obligations.

In my opinion, if the employees randomly go to different places in Delhi and their activities are centrally controlled from NOIDA (or can be somehow proven), then you can adopt UP Minimum Wages. You have to be cautious in making and presenting the records; otherwise, it can create troubles.

But if they are working at any fixed place (client office/places as per the company service contract), in such a case, you have to follow Delhi MW.