How Can I Transition Housekeeping Staff to Payroll Without Reducing Their Pay?

Dear friends,

I am in a software company, and I have a doubt about fixing a wage for housekeeping employees. We have decided to transition two of our temporary housekeeping staff onto our payroll. Currently, we are paying them 2000/- per month. I have explained to them about all the statutory deductions from their salary, and they are willing to accept these deductions.

However, I do not want to pay them less than what they are currently earning. At the same time, I want to bring them onto our payroll. Please let me know if there are any ideas to establish a package without any further hike or deduction, or suggest how much of an increase would be appropriate to bring them onto our payroll.

Thank you and regards,
Gopi.K

Hi Gopi,

Before recommending anything, please check the minimum wages applicable in your state. You can obtain this information from the labor office for the following grades: unskilled, semi-skilled, and skilled. Additionally, remember to include statutory benefits such as PF and ESIC, which will be deducted.

Cheers,
Rajat

Hi,

Mr. Rajat Joshi is obviously right. Your establishment has to be covered under the Shop & Commercial Establishment Act of the state in which you operate.

Then there is also the Minimum Wages Act. Under this act, employment in various schedules (industries) is included for which the State Government has fixed and announced "Statutory Minimum Wage (SMW)" for different categories and regions as pointed out by Rajat. The SMW has two components - Minimum Rate of Wage (MRW) and the Special Allowance (SA). While the MRW changes only when the State Government-appointed Minimum Wage reviews the MRW for various industries (generally at a frequency of about 4 to 5 years), the SA changes every six months as it is a variable payment linked to the cost of living and is in the nature of a Dearness Allowance.

The law warrants that at no point in time may any employer pay wages lower than the stipulated SMW for their schedule, region, and any concerned grade. Therefore, the wages you fix for the concerned staff have to be SMW or above at all times!

Regards,

Samvedan

June 23, 2006

Dear Gopi K,

In UP, the minimum wage for housekeeping and helper grade is Rs. 2715 applicable from 1st April 2006, and you are paying Rs. 2000 per month, which may create a problem. Please check your state's minimum wage circular. You can obtain it from the labor department.

Regards,
Dabas

Dear friends,

Thank you for your kind response. I have checked in our state MW Act, it is Rs 66/- per day. Also, please let me know the breakup for this post.

Thanks and regards,
Gopi.k

Dear Friend,

As of your given information, the rate of minimum wages per day is Rs. 66, which represents only the basic wages. What about D.A.? Please check once again for D.A. for Housekeeping. If you have the opportunity, refer to the book "Rate of Minimum Wages" by R.S. Sharma.

With regards,
Devendran

Dear,

This thread relates to minimum wages. Even then, it is hereby informed that, as per the information available with us, we are not required to deduct any Labour Welfare Fund Contribution in the State of U.P.

With Regards,
R.N.Khola

Please do check with your state's minimum wages for the current period. In Maharashtra, the minimum wage is 3120 + 1242 = 4362/-. If you are in Maharashtra, you have to pay a minimum of 4362 and comply with all legal compliances.