Clarification Needed: Adherence to Minimum Wage Notification despite Paying Above Minimum Wage

Hi All, Wishing you a very Happy New Year.

I have a question concerning the revision of minimum wages. As we are all aware, every MNC employer generally pays higher than the minimum wage. However, is it still compulsory to adhere to the minimum wage notification and proceed with arrears, etc.?

Could this be a compliance issue?

For instance, the minimum wage in Haryana for a Security Guard is 11,838 INR. However, we are already paying them around 24,000 INR in hand.
Are we compliant with the payment of 24,000 INR in hand?
Or do we need to revise the minimum wages in their Salary breakup as per the rule?

I would appreciate your clarification on this matter.
Regards,

The question you've raised is a common one among employers who pay their employees above the minimum wage. Here's a detailed response:

Firstly, the core issue here is understanding the purpose and application of minimum wage laws. These laws are designed to ensure a basic standard of living for employees. They set the lowest legal amount that an employer can pay their workers. If you're paying your employees more than the minimum wage, that's not just acceptable, it's commendable.

Secondly, from a legal and compliance perspective, as long as you're paying your employees more than the stipulated minimum wage, you're in compliance with the law. The Minimum Wages Act, 1948, which governs minimum wages in India, does not require employers to adjust their wages if they're already paying above the minimum wage.

However, it's important to note that if the minimum wage increases and it becomes higher than what you're currently paying, you would need to adjust your employees' wages accordingly to remain compliant.

As for the salary breakup, it's not necessary to revise the minimum wage in their salary breakup if you're already paying above the minimum wage. The salary breakup should reflect the actual wages you're paying your employees, not the minimum wage.

In conclusion, you're compliant with the law by paying your Security Guards 24,000 INR in hand, which is above the minimum wage in Haryana. You don't need to revise the minimum wage in their salary breakup as per the rule.

However, it's always a good practice to stay updated with the latest minimum wage notifications to ensure compliance. Also, remember that while paying above the minimum wage is a good practice, it's equally important to ensure that all other aspects of employee compensation, such as overtime and benefits, are also in compliance with the law.