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pon1965
604

Suppose we undertake a contract work for a Central Govt undertaking, which minimum wages shall be followed? State minimum wages as applicable to the district or central minimum wages? Experts may like to comment.
Pon

From India, Lucknow
k_shenbagarajan
188

Dear Pon,
It is central minimum wages only.
pls visit the below site.
Central Sphere

From India, Mumbai
pon1965
604

Dear Shenbagarajan,
Our co. has taken a contract with a Central Govt Undertaking. Our Co. has given subcontracts to various construction works. Initially all the subcontractors had applied labour licence as per the state Act based on the principal employer's certificate and implemented the state min. wages as applicable. After 2 yrs, the principal employer (in this case the Central Govt Undertaking) has notified us to implement the central min wages. Our Co. subcontractors are approaching our Co. for reimbursement of the difference in wages citing statutory variation. What to do in this case?
Pon

From India, Lucknow
k_shenbagarajan
188

Dear Pon,
Normally contractors give manpower to many companies/factories or establishment in the state as well to central govt offices.
For other establishment other than cent govt office they pay minimum wages as per the State act.
Since your co. is giving sub contract you also should follow the same according to the central wages.
Since the profit will be margin you cannot force the Cental govt office to increase since the contract is given to the person who quote low in the bidding and mean while you have to give the right rate to the sub contractor.
Here you could only negotiate with the sub contractors and find a solution. since both of you are dependent on each other for work contract.

From India, Mumbai
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