Dear Friends,
Please clarify the following: Our company is providing contract services for a Central Government Organization located in Chennai. Could you please confirm whether the applicability of Minimum wages is as per the Central Government Act or the State Government Act?
I would appreciate your guidance on this matter.
Regards, Ramkumar
From India, Madras
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2Please clarify the following: Our company is providing contract services for a Central Government Organization located in Chennai. Could you please confirm whether the applicability of Minimum wages is as per the Central Government Act or the State Government Act?
I would appreciate your guidance on this matter.
Regards, Ramkumar
From India, Madras
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Sub-Minimum Wages
There is no State Act on minimum wages. There is only a Central Act called the Minimum Wages Act 1948. However, the Minimum Wages Act permits the state Government to notify minimum wages for various establishments falling under its jurisdiction.
Now, your doubt is since you employed contract labor for a central government undertaking, whether minimum wages shall be paid as per the central government notification or state government notification. So far as minimum wages are concerned, they are payable as per the Government of Tamil Nadu notification since your establishment is located in (presumably) Chennai.
B. Saikumar HR & Labour Law consultant Chipinbiz Consultancy. Pvt. Ltd Mumbai Tel: 022-28324234
From India, Mumbai
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There is no State Act on minimum wages. There is only a Central Act called the Minimum Wages Act 1948. However, the Minimum Wages Act permits the state Government to notify minimum wages for various establishments falling under its jurisdiction.
Now, your doubt is since you employed contract labor for a central government undertaking, whether minimum wages shall be paid as per the central government notification or state government notification. So far as minimum wages are concerned, they are payable as per the Government of Tamil Nadu notification since your establishment is located in (presumably) Chennai.
B. Saikumar HR & Labour Law consultant Chipinbiz Consultancy. Pvt. Ltd Mumbai Tel: 022-28324234
From India, Mumbai
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Dear Mr. Saikumar,
Thank you for your clarification. I have one more doubt in this regard. Could you please clarify why Central Government minimum wages are not applicable even though contract labor is employed at Central Government establishments?
Regards,
Ramkumar
From India, Madras
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Thank you for your clarification. I have one more doubt in this regard. Could you please clarify why Central Government minimum wages are not applicable even though contract labor is employed at Central Government establishments?
Regards,
Ramkumar
From India, Madras
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Dear Mr. Ramkumar,
If you go through the Minimum Wages Act, you would see that the Act gives power to the "appropriate Government" to fix minimum rates of wages for certain employments. The term "appropriate Government" is defined in section 2(b) of the Minimum Wages Act. Specifically, section 2(b)(i) states the scheduled employments for which the Central Government is the appropriate Government, and section 2(b)(ii) states the scheduled employments for which the State Government is the appropriate Government. The term "carried on by or under the authority of the Central Government" has been interpreted by the Honourable Supreme Court and High Courts.
The information furnished by you is not sufficient to apply the rulings of the Supreme Court and the High Courts and to find out whether in the case specified by you the appropriate Government is the Central Government or the State Government. Moreover, in your post, you have not specified the employment with reference to which your query is made.
With regards,
From India, Madras
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If you go through the Minimum Wages Act, you would see that the Act gives power to the "appropriate Government" to fix minimum rates of wages for certain employments. The term "appropriate Government" is defined in section 2(b) of the Minimum Wages Act. Specifically, section 2(b)(i) states the scheduled employments for which the Central Government is the appropriate Government, and section 2(b)(ii) states the scheduled employments for which the State Government is the appropriate Government. The term "carried on by or under the authority of the Central Government" has been interpreted by the Honourable Supreme Court and High Courts.
The information furnished by you is not sufficient to apply the rulings of the Supreme Court and the High Courts and to find out whether in the case specified by you the appropriate Government is the Central Government or the State Government. Moreover, in your post, you have not specified the employment with reference to which your query is made.
With regards,
From India, Madras
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Sub-minimum wages
Dear Ram Kumar,
You need to approach the issue in the way Mr. Hari Krishnan explained. However, going by the brief details and your statement that you supplied contract labour to a central government organization, the applicability of minimum wages to the contract labour will, in my view, be decided with reference to the contractor's establishment but not with reference to the Principal employer's establishment. Otherwise, what happens is you may be supplying some contract labour to a central undertaking, some to a state undertaking, and some to a private industry. Thus, you will be paying minimum wages to some contract workers as per state rates and to some of your contract labour at central rates. You may also shift some contract workmen from a state establishment to a central establishment or vice versa to meet any peculiar need or urgent need in the respective establishments. In such a case, one day you will be paying minimum wages to the same contract labour at state rates and on another day at central rates.
If it is to be decided with reference to the contractor's establishment, this anomaly will not be there. If so, your establishment being in the private sector and located in Chennai, the appropriate government will be the state Government, and hence the minimum wages at state rates will be applicable, in my view. However, you can confirm it by contacting the Assistant Labour Commissioner (state) under whose jurisdiction your establishment falls.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
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Dear Ram Kumar,
You need to approach the issue in the way Mr. Hari Krishnan explained. However, going by the brief details and your statement that you supplied contract labour to a central government organization, the applicability of minimum wages to the contract labour will, in my view, be decided with reference to the contractor's establishment but not with reference to the Principal employer's establishment. Otherwise, what happens is you may be supplying some contract labour to a central undertaking, some to a state undertaking, and some to a private industry. Thus, you will be paying minimum wages to some contract workers as per state rates and to some of your contract labour at central rates. You may also shift some contract workmen from a state establishment to a central establishment or vice versa to meet any peculiar need or urgent need in the respective establishments. In such a case, one day you will be paying minimum wages to the same contract labour at state rates and on another day at central rates.
If it is to be decided with reference to the contractor's establishment, this anomaly will not be there. If so, your establishment being in the private sector and located in Chennai, the appropriate government will be the state Government, and hence the minimum wages at state rates will be applicable, in my view. However, you can confirm it by contacting the Assistant Labour Commissioner (state) under whose jurisdiction your establishment falls.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
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Dear Ram Kumar,
The minimum wage slab differs between the Central Government and State Government. Please verify the current slab for Chennai.
Based on your information, your company is set to provide contract services for a Central Government organization in Chennai. This implies that for obtaining a labor license, you will need to visit the Local Regional Labor Commissioner's office, not the District Labor Commissioner's office. Since your principal employer falls under the Central Government, all Central Government labor laws will apply to your organization. Correspondingly, the minimum wage slab set by the Central Government will also be applicable to your organization.
Experts, your comments are requested.
Ratikanta Rath
From India, Durgapur
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The minimum wage slab differs between the Central Government and State Government. Please verify the current slab for Chennai.
Based on your information, your company is set to provide contract services for a Central Government organization in Chennai. This implies that for obtaining a labor license, you will need to visit the Local Regional Labor Commissioner's office, not the District Labor Commissioner's office. Since your principal employer falls under the Central Government, all Central Government labor laws will apply to your organization. Correspondingly, the minimum wage slab set by the Central Government will also be applicable to your organization.
Experts, your comments are requested.
Ratikanta Rath
From India, Durgapur
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Dear Mr. Ratikanta Rath,
I request you to see section 3 of the Minimum Wages Act. This section gives power to the appropriate Government to fix minimum rates of wages for EMPLOYMENTS and not minimum rates of wages for ESTABLISHMENTS.
What rate of minimum wages has to be followed in the case of an employment through a contractor in a Central Government organisation and for which employment the Central Government has not fixed minimum rates of wages, but the State Government has fixed minimum rates of wages. I want to repeat that the employees are the employees of the contractor and not employees of the Central Government organisation and the appropriate Government for the employment is the State Government.
I request you to offer your views.
With regards
From India, Madras
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I request you to see section 3 of the Minimum Wages Act. This section gives power to the appropriate Government to fix minimum rates of wages for EMPLOYMENTS and not minimum rates of wages for ESTABLISHMENTS.
What rate of minimum wages has to be followed in the case of an employment through a contractor in a Central Government organisation and for which employment the Central Government has not fixed minimum rates of wages, but the State Government has fixed minimum rates of wages. I want to repeat that the employees are the employees of the contractor and not employees of the Central Government organisation and the appropriate Government for the employment is the State Government.
I request you to offer your views.
With regards
From India, Madras
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Dear Mr. V. Harikrishnan,
Currently, my company is a mining-based contractor. We are providing services to 7 big mines in Orissa. All the mines are registered under the Central Government, and their statutory records and returns are maintained as per the Mines Act. When the Central Government revises the minimum wages, we also adjust our salary structure accordingly based on the updated Basic DA. We ensure that we hold all the necessary statutory licenses and submit all required returns.
Ratikanta Rath
From India, Durgapur
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Currently, my company is a mining-based contractor. We are providing services to 7 big mines in Orissa. All the mines are registered under the Central Government, and their statutory records and returns are maintained as per the Mines Act. When the Central Government revises the minimum wages, we also adjust our salary structure accordingly based on the updated Basic DA. We ensure that we hold all the necessary statutory licenses and submit all required returns.
Ratikanta Rath
From India, Durgapur
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Dear Sir,
We are a manpower supplying company in Maharashtra, and we have branch offices across India. I would like to clarify if we are supposed to pay minimum wages as per the Maharashtra State government's jurisdiction or follow the jurisdiction of the governments where our branch offices are located.
Whatever the answer to my question, I would appreciate it if I could have a government document or a webpage/link stating the true facts.
From India, Mumbai
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We are a manpower supplying company in Maharashtra, and we have branch offices across India. I would like to clarify if we are supposed to pay minimum wages as per the Maharashtra State government's jurisdiction or follow the jurisdiction of the governments where our branch offices are located.
Whatever the answer to my question, I would appreciate it if I could have a government document or a webpage/link stating the true facts.
From India, Mumbai
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In my view, the branch falls under the jurisdiction of the Government of the State in which it is located for the purpose of the minimum wages. B.Saikumar HR& Labour Law advisor mumbai
From India, Mumbai
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From India, Mumbai
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Appreciate your view but if i am not wrong it shouldn’t the wages be paid as per the Jurisdiction of the State where the head office is located.... Please correct me if i am wrong....
From India, Mumbai
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From India, Mumbai
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Hello Citeians, Can anyone help me find out what is the rule26(6) of the central rule of minimum wage act 1948 describes. What is meant by those three asterisks(*)?
From India, Bhubaneswar
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From India, Bhubaneswar
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It will be difficult to trace the original Subrule (6) of Rule (26) now since it was omitted in 1963. The three asterisks indicate that the said subrule was omitted in 1963 and is no longer in force. Trust you are now clarified, Miss Confused.
B. Saikumar
From India, Mumbai
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B. Saikumar
From India, Mumbai
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Dear Ram,
You have to pay minimum wages based on your client's registration, but it is also specified in the proviso under the Minimum Wages Act that the higher of the minimum wage, either central or state, should be paid to the workmen concerned.
Regards,
Sanjeev Kumar
From India, New Delhi
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You have to pay minimum wages based on your client's registration, but it is also specified in the proviso under the Minimum Wages Act that the higher of the minimum wage, either central or state, should be paid to the workmen concerned.
Regards,
Sanjeev Kumar
From India, New Delhi
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Dear Mr. Saikumar, Your view on employees working on different locations, whether there is any rule or decision by the court. Thanks Maharana 9004665640
From India, Mumbai
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From India, Mumbai
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Dear Radhey Shyam,
I had a re-look at this issue. It is a vexatious question. If you peruse the Minimum Wages Act, Sec. 3 of the Act is the relevant provision governing the issue. Sec. 3 says that the appropriate government can fix minimum wages in respect of employments specified in the Schedule to the Act. It spells out two key factors to determine the issue as to payment of minimum wages, namely: 1) the appropriate government and 2) employment in which the contract laborers are employed.
Now the issue gains complexity when a contractor is registered under the State's Shops and Establishments Act and supplies contract labor to a central undertaking because the appropriate governments for the contractor and for the principal employer are different. Thus, two views are heard on this issue. One view maintains that since the contractor is registered under the Shops and Establishments Act and the contract laborers are the employees of the contractor, the minimum wages notified by the State Government shall be paid. Another view is that even though the contract laborers are the employees of the contractor, since the contractor has a labor license for employment in the central undertaking and the contract laborers are working for the principal employer (central undertaking), the minimum wages shall be paid as per the Central Government notification.
Another twist to the issue may crop up when the contractor undertakes the job of the principal employer at his (contractor's) premises. Then in whose employment, the contract laborers are deemed to be employed - contractor's or principal employer's. Each view seems to have its own valid grounds. I have not come across any case law specifically covering a situation like this. The prudent view seems to be that when both the state government and central government notify minimum wages in respect of the same employment, it is better to pay the higher of the two. This is only a view on the issue. Others may have their own views.
B. Saikumar
Mumbai
From India, Mumbai
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I had a re-look at this issue. It is a vexatious question. If you peruse the Minimum Wages Act, Sec. 3 of the Act is the relevant provision governing the issue. Sec. 3 says that the appropriate government can fix minimum wages in respect of employments specified in the Schedule to the Act. It spells out two key factors to determine the issue as to payment of minimum wages, namely: 1) the appropriate government and 2) employment in which the contract laborers are employed.
Now the issue gains complexity when a contractor is registered under the State's Shops and Establishments Act and supplies contract labor to a central undertaking because the appropriate governments for the contractor and for the principal employer are different. Thus, two views are heard on this issue. One view maintains that since the contractor is registered under the Shops and Establishments Act and the contract laborers are the employees of the contractor, the minimum wages notified by the State Government shall be paid. Another view is that even though the contract laborers are the employees of the contractor, since the contractor has a labor license for employment in the central undertaking and the contract laborers are working for the principal employer (central undertaking), the minimum wages shall be paid as per the Central Government notification.
Another twist to the issue may crop up when the contractor undertakes the job of the principal employer at his (contractor's) premises. Then in whose employment, the contract laborers are deemed to be employed - contractor's or principal employer's. Each view seems to have its own valid grounds. I have not come across any case law specifically covering a situation like this. The prudent view seems to be that when both the state government and central government notify minimum wages in respect of the same employment, it is better to pay the higher of the two. This is only a view on the issue. Others may have their own views.
B. Saikumar
Mumbai
From India, Mumbai
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Dear Sandeep, Plz go through the attachment as per M.W Act, it will help u. In case of any doubt feel free to ask. Thanks/regards Ratikanta Rath
From India, Durgapur
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From India, Durgapur
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Dear Thanku very much Bur weather Stone crusing rate is consider for the mining workmen ? As you have the exposure in mines can you guide me on CMPF isuue. THanks & Regards,
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Dear Sandeep,
Are you asking about manual stone crushing or stone quarry? If workers are engaged in Stone Mines for Stone Breaking and Stone Crushing, then as per schedule 2, it will be applicable. If your organization is conducting any mining activities in a stone quarry, then schedule 7 will be applicable.
Can you tell me more about CMPF?
Thanks/regards,
Ratikanta Rath
From India, Durgapur
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Are you asking about manual stone crushing or stone quarry? If workers are engaged in Stone Mines for Stone Breaking and Stone Crushing, then as per schedule 2, it will be applicable. If your organization is conducting any mining activities in a stone quarry, then schedule 7 will be applicable.
Can you tell me more about CMPF?
Thanks/regards,
Ratikanta Rath
From India, Durgapur
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Dear Ratikanta,
Thank you very much.
We currently have coal mines in Maharashtra State and have engaged a contractor for Overburden removal as well as some contractual staff for Dispatch and general clerical duties. I would like to know what the minimum wages should be for them.
Additionally, we have learned that these employees will be covered under the Coal Mines Provident Fund Act. While I have knowledge about the Employee's Provident Fund, I am unfamiliar with the Coal Mines Provident Fund. Therefore, I kindly request you to share the details if you have them.
Thanks and Regards,
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Thank you very much.
We currently have coal mines in Maharashtra State and have engaged a contractor for Overburden removal as well as some contractual staff for Dispatch and general clerical duties. I would like to know what the minimum wages should be for them.
Additionally, we have learned that these employees will be covered under the Coal Mines Provident Fund Act. While I have knowledge about the Employee's Provident Fund, I am unfamiliar with the Coal Mines Provident Fund. Therefore, I kindly request you to share the details if you have them.
Thanks and Regards,
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Dear Sandeep,
Since I have experience in Iron Ore mines, the Manufacturing industry, and Shops Establishment only, and in the case of EPF, we are directly linked to EPF so I can't provide more input for coal mines. However, to the best of my knowledge, if you are using manual unskilled labor, then you will need to pay minimum wages as per the coal industry standards.
Secondly, in your organization, the Coal Mines Provident Fund Act will be applicable. I recommend reaching out directly to the enforcement officer in your circle who can guide you through the process, starting from registration to everything else. Please also share the information with us.
Experts who have experience in Coal Projects, kindly provide your insights on these matters.
Thank you and regards,
Ratikanta Rath
From India, Durgapur
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Since I have experience in Iron Ore mines, the Manufacturing industry, and Shops Establishment only, and in the case of EPF, we are directly linked to EPF so I can't provide more input for coal mines. However, to the best of my knowledge, if you are using manual unskilled labor, then you will need to pay minimum wages as per the coal industry standards.
Secondly, in your organization, the Coal Mines Provident Fund Act will be applicable. I recommend reaching out directly to the enforcement officer in your circle who can guide you through the process, starting from registration to everything else. Please also share the information with us.
Experts who have experience in Coal Projects, kindly provide your insights on these matters.
Thank you and regards,
Ratikanta Rath
From India, Durgapur
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Dear Seniors,
Kindly clear my doubts on the Minimum Wages Act of 1948.
What is the applicability for employers? Does it depend on the number of employees, similar to PF & ESI regulations?
I work for a Forex company. I am wondering if this Act applies to us. Our company is located in Delhi, and we currently have 28 employees in Delhi.
PLEASE HELP ME.
From India, New Delhi
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Kindly clear my doubts on the Minimum Wages Act of 1948.
What is the applicability for employers? Does it depend on the number of employees, similar to PF & ESI regulations?
I work for a Forex company. I am wondering if this Act applies to us. Our company is located in Delhi, and we currently have 28 employees in Delhi.
PLEASE HELP ME.
From India, New Delhi
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KNOW ABOUT MINIMUM WAGES ACT.pdf
SELF-CERTIFICAT E PROFORMA UNNDER THE MINIMUM WAGES ACT, 1948.doc
Minimum Wages and PSAR Act.ppt