Understanding Minimum Wage Laws: Are White-Collar Workers in Factories Covered Too?

I have a total of 100 people in my factory, out of which 30 are blue-collar workers and 35 are white-collar workers. Is the Minimum Wages Act applicable to all or only to blue-collar workers? Can I prepare a compensation package for white-collar junior staff with a basic salary of 15,000?

White Collar Job

White collar jobs refer to people who work in an office, such as office staff. Their salary depends on mutual discussion between both parties and is agreed upon to a point where fair wages or living wages are applicable. It must be beyond the minimum wage.

Blue Collar Job

Blue collar jobs refer to shop floor employees where the minimum wage is paid. However, if a blue-collar employee continues year after year, their salary is fixed above the minimum wage, and other monetary benefits are provided, such as transport allowance, education allowance, leave traveling expenses within India, washing allowance, etc. For example, a skilled welder who produces high-quality work that is imperceptible to the naked eye deserves a good monthly salary and additional benefits to ensure their continued employment with the employer in a long-term manner.

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You have to pay at least minimum wages, whether it is white-collar or blue-collar. Of course, you can pay more than minimum wages, but you cannot pay less than this.

You can adopt minimum wages for all categories of employees. There is no restriction by law, provided the employees agree to it. You need to work out wages that match other factories in your category under the minimum wages. Basics should be paid based on the minimum wage, with anything extra matching the job market on an incentive basis per day.