Security Services and Minimum Wage Compliance
Our complex has 100 flats. We have negotiated rates with a security agency for providing four security guards. The agreed amount is a lump sum paid to the agency. The agency retains their commission and pays the security guards.
Is there any minimum amount we should pay to the agency for their services? How do we ensure that the agency is paying the security staff in line with the Karnataka Minimum Wages Act? What is the minimum remuneration that has to be paid for one security guard and one female housekeeping staff who is deployed to clean our common area premises? Please guide.
Thanks,
Ramesh
From India, Bengaluru
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1Our complex has 100 flats. We have negotiated rates with a security agency for providing four security guards. The agreed amount is a lump sum paid to the agency. The agency retains their commission and pays the security guards.
Is there any minimum amount we should pay to the agency for their services? How do we ensure that the agency is paying the security staff in line with the Karnataka Minimum Wages Act? What is the minimum remuneration that has to be paid for one security guard and one female housekeeping staff who is deployed to clean our common area premises? Please guide.
Thanks,
Ramesh
From India, Bengaluru
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Dear Ramesh,
Please check the Minimum Wages Act of Karnataka and review the rates that the guards should be paid after deductions of 12% for PF, 0.75% for ESIC (as per the latest notification), and a Professional tax of 175 from their basic and DA. For instance, if the basic and DA amount to 100, the guard should receive approximately 85. Additionally, the guard would also be entitled to other benefits such as bonus, leave, overtime, etc.
Thank you.
From India, Thana
Acknowledge(0)Amend(0)
Please check the Minimum Wages Act of Karnataka and review the rates that the guards should be paid after deductions of 12% for PF, 0.75% for ESIC (as per the latest notification), and a Professional tax of 175 from their basic and DA. For instance, if the basic and DA amount to 100, the guard should receive approximately 85. Additionally, the guard would also be entitled to other benefits such as bonus, leave, overtime, etc.
Thank you.
From India, Thana
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A P LATEST MINIMUM WAGES FOR SECURITY SERVICES UP TO 31-03-2020 (2).pdf
A.P LATEST MINIMUM WAGES FOR SECURITY SERVICES UP TO 31-03-2020.xls