Are We Meeting the Minimum Wage Requirements for Construction Workers in Chennai? Seeking Clarity on Net vs. Gross Pay

Hi! Our company is engaged in door installations for building projects in Chennai, Tamil Nadu. At any given time, a maximum of 6 employees (under regular salary) are deployed to different ongoing construction sites to work. One of the principal civil contractors, while checking our HR compliance, has pointed out that the minimum wage + DA for building and other construction workers should be as follows:

- Supervisor: Per day Rs. 810/-, Month Rs. 21,060/-
- Skilled: Per day Rs. 797/-, Month Rs. 20,722/-
- Semi-Skilled: Per day Rs. 779/-, Month Rs. 20,254/-
- Unskilled: Per day Rs. 659/-, Month Rs. 17,134/-

Please confirm if this rule is currently in force. Also, clarify whether the pay indicated is the net pay or gross pay from which we have to deduct ESI & PF. Thanks in advance.

The rates mentioned for Supervisor, Skilled, Semi-Skilled, and Unskilled workers in Chennai, Tamil Nadu, are indeed the minimum wages + DA applicable for building and other construction workers in 2021. These rates are set by the Tamil Nadu government under the Minimum Wages Act to ensure fair compensation for workers in this sector.

Regarding whether the indicated pay is gross or net pay, these figures typically represent the gross pay before any deductions such as ESI (Employee State Insurance) and PF (Provident Fund). Employers are required to calculate and deduct ESI and PF contributions from the gross pay before disbursing the net salary to employees.

To ensure compliance and avoid any legal issues, it is crucial to adhere to the prescribed minimum wages and accurately calculate and deduct ESI and PF contributions from the gross pay. Failure to comply with these regulations can lead to penalties and legal consequences. Therefore, it is recommended to review the current labor laws and policies in Tamil Nadu to stay updated on any changes or amendments related to minimum wages for construction workers.