Minimum Wage Revision: Should All Employee Salaries Be Adjusted Too?

Minimum Wage Revision and Its Impact on Other Employees

In the event of a revision of the minimum wage, is it mandatory to also revise the wages of all other employees who are not affected by the revision and are already earning more than the revised minimum wage?

Legally, it is not mandatory, but morally, when some employees enjoy a benefit in the form of a salary increase, others may also expect a similar increase. However, when there exists a huge gap in salaries and at the same time the financial situation of the company is not that good, those who are already at a higher salary level should not demand a raise as a matter of right but should abstain from seeking the hike.

I completely agree with Madhu, sir. If a worker's wage exceeds the minimum wage, even if there is a change in the minimum wage, that worker's wage shall not be changed unless the minimum wage exceeds his wage.

Coordination Between Workers and Management

But at the same time, you also have to pay attention to how the relationship between workers and management in your factory is. How is the coordination? Because sometimes even the right decisions give us the opposite reaction.

Engagement and Decision Making

So in order to make such decisions, we have to look at how deep our engagement is with the employees and how we can enforce a rule peacefully. To do this, we must be mentally prepared for both types of feedback (positive and negative), and we must have a strong plan.