The basic wage payable to employees of hotels and restaurants as per the Tamil Nadu Labour Department is about Rs. 6075 per month. However, as per the central government's list on minimum wages for 2016-17 for Tamil Nadu, it is about Rs. 2570 per month (Rs. 98.85 per day). The significant difference in these figures raises the question of which one should be followed. Can you please provide guidance on this matter? Thank you.
From India, Vellore
Acknowledge(0)
Amend(0)
From India, Vellore
Acknowledge(0)Amend(0)
Please note that the fixation of minimum wages for different scheduled employments is a matter for the concerned state, and various mechanisms are being utilized by states to adjust the minimum wages over time, such as linking them to price indexes or revising them based on political decisions.
In light of the above, I disagree with your statement regarding the minimum wages for Tamil Nadu as per the central government's list for 2016-17, which indicates it to be approximately Rs. 2570 per month (Rs. 98.85 per day).
P K Sharma
From India, Delhi
Acknowledge(2)
Amend(0)
160In light of the above, I disagree with your statement regarding the minimum wages for Tamil Nadu as per the central government's list for 2016-17, which indicates it to be approximately Rs. 2570 per month (Rs. 98.85 per day).
P K Sharma
From India, Delhi
Acknowledge(2)Amend(0)
Understanding Minimum Wage Discrepancies in India
The Constitution of India has provided equal powers to the Union (Central Government) and State Government on the items mentioned in the Concurrent List (Labour and Employment is one in the list). India is a vast country, and every state is different from others in many aspects. As such, minimum wages vary from state to state, declared by considering the Consumer Price Index/Cost of Living Index of the particular state. For Central Government undertakings, minimum wages are fixed by the Central Labour Department. Similarly, for State Government undertakings, the State Labour Department sets the minimum wages. This is why wages differ among states.
However, the higher of the central or state wage must be paid to the workmen, regardless of the competent authority's jurisdiction (Central or State). For example, if two factories (of the same schedule of employment) are located in the same state, one under the Central Government and another under State Government jurisdiction, the State Government notified wages must be paid in both factories if the Central Government minimum wages are lower.
Hope this clears any ambiguity.
Regards, Raghavendra
From India, Hyderabad
Acknowledge(2)
Amend(0)
The Constitution of India has provided equal powers to the Union (Central Government) and State Government on the items mentioned in the Concurrent List (Labour and Employment is one in the list). India is a vast country, and every state is different from others in many aspects. As such, minimum wages vary from state to state, declared by considering the Consumer Price Index/Cost of Living Index of the particular state. For Central Government undertakings, minimum wages are fixed by the Central Labour Department. Similarly, for State Government undertakings, the State Labour Department sets the minimum wages. This is why wages differ among states.
However, the higher of the central or state wage must be paid to the workmen, regardless of the competent authority's jurisdiction (Central or State). For example, if two factories (of the same schedule of employment) are located in the same state, one under the Central Government and another under State Government jurisdiction, the State Government notified wages must be paid in both factories if the Central Government minimum wages are lower.
Hope this clears any ambiguity.
Regards, Raghavendra
From India, Hyderabad
Acknowledge(2)Amend(0)
There is some mistake in your interpretation. The central minimum wage list is for the country as a whole, and not for each state. So you need to have another look at the documents and see what exactly you are referring to. I think you are looking at the base wages, whereas what you need to see is the base plus special allowance. Both together should be at similar levels as they are base due to the cost of living.
From India, Mumbai
Acknowledge(1)Amend(0)
0
0
From India, Mumbai
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-The user reply is [B]correct[/B]. Thank you for the detailed explanation and clarification. (1 Acknowledge point)
0
0
Clarification on the Current State Wages Act
I work for an MNC in Bangalore and need clarification on the Current State Wages Act. Recently, my organization changed the salary component structure, stating it's as per the recent State Wages Act.
Before Changes:
Basic Pay -> 6500,
HRA -> 2500,
Special Allowance + Medical Allowance + Education Allowance + Fixed Incentive = 21,000.
(Monthly Take Home 30,000)
After Changes:
Basic Salary -> 6500,
HRA -> 18800,
Medical Allowance -> 1800,
Educational Allowance -> 1400,
Incentive -> 1500.
Is this a State-compliant salary structure?
From India, Bengaluru
Acknowledge(0)Amend(0)
I work for an MNC in Bangalore and need clarification on the Current State Wages Act. Recently, my organization changed the salary component structure, stating it's as per the recent State Wages Act.
Before Changes:
Basic Pay -> 6500,
HRA -> 2500,
Special Allowance + Medical Allowance + Education Allowance + Fixed Incentive = 21,000.
(Monthly Take Home 30,000)
After Changes:
Basic Salary -> 6500,
HRA -> 18800,
Medical Allowance -> 1800,
Educational Allowance -> 1400,
Incentive -> 1500.
Is this a State-compliant salary structure?
From India, Bengaluru
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Central Minimum Wages - 01-04-2021 to 30-09-2021.pdf
CiteHR.AI
(Fact Checked)-The user's reply is correct. It accurately explains the differences in minimum wages between central and state government jurisdictions and clarifies that the higher of the two must be paid to workers. Hope this will clear your ambiguity. (1 Acknowledge point)