calculation of minimum wages
ISTD
(Querist) 02 July 2016
This query is : Resolved
Respected Sir
Does the daily rate minimum wages as per notification is inclusive of wage for rest day? I.e. Paying min. wages for 26 days in a month is as per Payment of wages Act ?
Siddharth Dev
(Expert) 02 July 2016
I'm providing you following information hope that information may help you;
3.
Fixing of minimum rates of wages.
3. Fixing of minimum rates of wages.- 1*[(1) The appropriate
Government shall, in the manner hereinafter provided,--
2*[(a) fix the minimum rates of wages payable to employees
employed in an employment specified in Part I or Part
II of the Schedule and in an employment added to either
Part by notification under section 27:
Provided that the appropriate Government may, in
respect of employees employed in an employment
specified in Part II of the Schedule, instead of fixing
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minimum rates of wages under this clause for the whole
State, fix such rates for a part of the State or for
any specified class or classes of such employment in
the whole State or part thereof;]
(b) review at such intervals as it may think fit, such
intervals not exceeding five years, the minimum rates
of wages so fixed and revise the minimum rates, if
necessary:
3*[Provided that where for any reason the appropriate Government
has not reviewed the minimum rates of wages fixed by it in respect of
any scheduled employment within any interval of five years, nothing
contained in this clause shall be deemed to prevent it from reviewing
the minimum rates after the expiry of the said period of five years
and revising them, if necessary, and until they are so revised the
minimum rates in force immediately before the expiry of the said
period of five years shall continue in force.]
(1A) Notwithstanding anything contained in sub-section (1), the
appropriate Government may refrain from fixing minimum rates of wages
in respect of any scheduled employment in which there are in the whole
State less than one thousand employees engaged in such employment, but
if at any time, 4*** the appropriate Government comes to a finding
after such inquiry as it may make or cause to be made in this behalf
that the number of employees in any scheduled employment in respect
of which it has refrained from fixing minimum rates of wages has risen
to one thousand or more, it shall fix minimum rates of wages payable
to employees in such employment 5*[as soon as may be after such
finding].]
(2) The appropriate Government may fix,--
(a) a minimum rate of wages for time work (hereinafter
referred to as "a minimum time rate");
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1. Subs. by Act 26 of 1954, s. 3, for sub-section (1).
2. Subs. by Act 31 of 1961, s. 2, for cl. (a).
3. Added by Act 30 of 1957, s. 3.
4. Certain words, brackets and figure omitted by Act 31 of 1961,
s. 2.
5. Subs. by s. 2, ibid., for certain words.
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(b) a minimum rate of wages for piece work (hereinafter
referred to as "a minimum piece rate");
(c) a minimum rate of remuneration to apply in the case of
employees employed on piece work for the purpose of
securing to such employees a minimum rate of wages on a
time work basis (hereinafter referred to as "a
guaranteed time rate");
(d) a minimum rate (whether a time rate or a piece rate) to
apply in substitution for the minimum rate which would
otherwise be applicable, in respect of overtime work
done by employees (hereinafter referred to as "overtime
rate").
1*[(2A) Where in respect of an industrial dispute relating to the
rates of wages payable to any of the employees employed in a scheduled
employment, any proceeding is pending before a Tribunal or National
Tribunal under the Industrial Disputes Act, 1947 (14 of 1947.) or
before any like authority under any other law for the time being in
force, or an award made by any Tribunal, National Tribunal or such
authority is in operation, and a notification fixing or revising the
minimum rates of wages in respect of the scheduled employment is
issued during the pendency of such proceeding or the operation of the
award, then, notwithstanding anything contained in this Act, the
minimum rates of wages so fixed or so revised shall not apply to those
employees during the period in which the proceeding is pending and the
award made therein is in operation or, as the case may be, where the
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notification is issued during the period of operation of an award,
during that period; and where such proceeding or award relates to the
rates of wages payable to all the employees in the scheduled
employment, no minimum rates of wages shall be fixed or revised in
respect of that employment during the said period.]
(3) In fixing or revising minimum rates of wages under this
section,--
(a) different minimum rates of wages may be fixed for--
(i) different scheduled employments;
(ii) different classes of work in the same
scheduled employment;
(iii) adults, adolescents, children and
apprentices;
(iv) different localities;
2*[(b) minimum rates of wages may be fixed by any one or
more of the following wage periods, namely:--
(i) by the hour,
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1. Ins. by Act 31 of 1961, s. 2.
2. Subs. by Act 30 of 1957, s. 3, for the original clause, excluding
the proviso.
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(ii) by the day,
(iii) by the month, or
(iv) by such other larger wage-period as may be
prescribed;
and where such rates are fixed by the day or by the month,
the manner of calculating wages for a month or for a day, as
the case may be, may be indicated:]
Provided that where any wage-periods have been fixed under
section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimum
wages shall be fixed in accordance therewith.
Thank you;
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Kumar Doab
(Expert) 02 July 2016
Off days/Rest days/holidays etc are paid days............
Distinguish between Payment of Wages , Calculation of daily/hourly wages............
Monthly wages/26= daily wage
Monthly wages/26/8=hourly wage
ISTD
(Querist) 02 July 2016
Sir, my query is when we pay day wise minimum wages say 307 rs/day for 26 days in a month - does it include wages of rest day say Sunday? Do any one has an idea of how the minimum wages are arrived at (breakup). Please
Siddharth Dev
(Expert) 03 July 2016
The minimum wages notified by the respective goverments are having only Basic and DA compenents only which shoul not be maneouvered in any case. Other allownaces could only be the add ons. The basic is revised once in five years and DA portion is only getting revised depending upon consumer price variance in every six months or one year state to state.
Now right question comes into exixtance.
Answer is;
As regards the unschedule categories, one of the following options may be exercised:-
1) Same and similar nature of jobs performed in the industry
2) A wages not less than the wages earened by the bottom most regular worker in respect of contractual workers
3) Wages arrived through settlement with the Union
4) Wages notified by the District Administration, if any.
Thank you;
www.satron19.com
ISTD
(Querist) 04 July 2016
Thanks for apt reply. The final question is "is it enough to pay only 26 days notified wages to contractual workmen? the Delhi govt. Website clearly mentions the same (monthly wages/26 days = daily wages). As per my understanding, this is legally tenable only when 26 days wage is inclusive of allowance for 4 rest day also. If it is not then why not to pay min. wage for 30/31 days?
ISTD
(Querist) 04 July 2016
Eureka. (1) The extraordinary gazette notification of ministry of labour clearly spells in point no 7 of notification that min. wages is inclusive of wages for rest day. However it does not specify for the organizations having 5 days per week working. (2) how to calculate stipend for apprentice's which is now based on min. wage - 31/30 or 26 or 22 days or on actual days of attendance whichever is lower.
Please reply, it matters a lot to me.
