Pros Cons by barred workers those are in minimum wage criteria

Dear All,

Our management wants to increase the basic salary of the workers and should be barred from the minimum wage that comes in minimum wage criteria or equal to minimum wage.

Pls, share the Pros and Cons of this. I shall be very thankful to you.

If your workers' salary is right now more than the statutory minimum wages, then it cannot be brought down to minimum wages level. You can fix the basic and VDA as per minimum wages and then allow the difference as some additional allowance. No way you can reduce the salary.

In case you are paying more than the minimum wages notified in the state, then you are automatically out of its clutch. However, the minimum wage rates notified increase from the USW grade, to the SSW, Skilled and Super Skilled categories which also have to be ensured for compliance.

True. You will be protected as long as your wages are more than the MW. You need to protect whenever the MW are more the wages fixed by you. You will be out of clutches of MW as long as your wages are above MW as said by our colleague.

Minimum wages Act is applicable to the scheduled employments. If workers are covered under Scheduled Employment, then Minimum wages Act is applicable and therefore the employer need to pay them wages as fixed by the appropriate government for such scheduled employment. If employer is paying wages more than the rates fixed by the appropriate government then there is no worry of claim case as stipulated under Section 20 of the Minimum wages Act but need to comply the Act in respect of display of notices, maintaining registers, issue of wage slips, submission of annual return etc. Even if employer is paying minimum wages and not complying with other provisions, prosecution case can be filed against employer.

Thanks sir for your valuable advice