Hi Seniors, greetings for the day! The area where my factory is located was previously in the 3rd-grade municipality, hence we fixed the salary in "C zone" as per the Minimum Wages Act. Now, our factory area has turned into a 1st-grade municipality since July 2012, and the wage rates now fall under "B zone." We missed modifying the minimum wages to date, but the salary we provide is more than the minimum wages. The only difference is in the basic value of Rs.19/-. Please advise.
From India, Madras
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1From India, Madras
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Dispute Over Salary Compliance with Minimum Wage Act
There is a dispute regarding whether a salary higher than the minimum wage is acceptable, even if the basic and dearness allowance (DA) are lower. Personally, I believe the act is very specific and does not equate to compliance. In this scenario, you would need to pay the difference as arrears to all the workers.
However, in reality, the likelihood of anyone prosecuting you for having an Rs 18 shortfall in basic pay is low. Therefore, you can remain quiet and implement the change during the next round of wage increases.
From India, Mumbai
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There is a dispute regarding whether a salary higher than the minimum wage is acceptable, even if the basic and dearness allowance (DA) are lower. Personally, I believe the act is very specific and does not equate to compliance. In this scenario, you would need to pay the difference as arrears to all the workers.
However, in reality, the likelihood of anyone prosecuting you for having an Rs 18 shortfall in basic pay is low. Therefore, you can remain quiet and implement the change during the next round of wage increases.
From India, Mumbai
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