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Noor Khan (Data Analyst)     08 August 2014

Government law on salary as per work experience

I have been working as a process associate in a US based pvt ltd BPO from last 11 years. In my organization we are getting 12000 basic salaries, rests are incentives which are more or less than our basic salary, vary from one project to another project. We don’t have other salary related allowances. If we take single leave even for medical reason our company deducts single day incentive. If we take leave for hometown visit for 10 day in a year we have to pay our 10 days incentives. Incentives can be 0 if someone does some work related errors. Basic salary is same for newer associate and old associate. Due to this it happens many times that newer associate get more salary as compare to old associates. I just need to know, then what is the difference between 1 year old employee and 14 year old employee. As per our management they are following the government’s minimum wages rule and providing fixed basic as per rule, fluctuation is only in incentives. Due to this incentive deduction rules our salary is fluctuating highly and there are lot of examples in our organization that a 2-4 years experience associate is getting more salary than a 14 years experience employee.

I just need to know, is there any government’s salary increment law as per work experience? What our organization is doing is right and as per government law? Please suggest.


 8 Replies

Sudhir Kumar, Advocate (Advocate)     08 August 2014

read minimum wages act.

Noor Khan (Data Analyst)     09 August 2014

Respected Sir,

I have checked but could not found any wages increment act as per experience\working years.  I think there is no law for wages as per experience. 

Please suggest if I am misguided or wrong.

With thanks,


Sudhir Kumar, Advocate (Advocate)     09 August 2014

Minimum Wages Act

Kumar Doab (FIN)     09 August 2014

This is without any reference to any comment of any expert/member/visitor and is an indivizual opinion with limited understanding from the post of author/querist.

Incentive if paid but not earned can be deducted.

Incentive if achieved is paid.

Incentive if earned/qualified, but not paid is breach.

Wages that are earned can not be deducted.

You may get your payouts, incentives policy, incentive deductions, leave deductions, wage deductions, etc checked from a local labor consultant/service lawyer and find out violations if any.

First of all check out  in your state: are BPO employees covered in Min. Wages Act?

If yes then wages for various categories of employees are being paid according to the Act or not?

Your company has devised some methodology that should be carefully understood.


Apparently it is some global  policy imitation.

With your kind of experience you can cross floors and be with some real good establishment for some real good career.

Don't waste your youth here.

1 Like

T. Kalaiselvan, Advocate (Advocate)     10 August 2014

The incentive payment policy of the company may not be disputed because, the conditions of payment of incentives and other perquisites have been properly mentioned in the company rules which have been accepted by you through the offer letter signed by you.  As advised by experts, if you feel embarrassed or frustrated with the company policy, you may change the job for a better establishment/company.

1 Like

Noor Khan (Data Analyst)     10 August 2014

Thanks for your suggestion. Definitely I will try to leave my job as soon as possible.

But the big question is, there must be a government law for minimum wages increment as per work experience/working year also. So that the employee those are working for a very long period can get some benefit from it.

It is not justified that a 1 year experience employee and a 15 years experience employee get wages only as per minimum wages act.

Please suggest if there is any act/law for wages increment as per working years/working experience.

T. Kalaiselvan, Advocate (Advocate)     11 August 2014

@Author: You are right that the government has formulated policies time and again protecting the interest of employed class whether in the government sector or private sector and one such is the minimum wages act.  While the government has laid down strict policies about the wages, the clever and cunning employers take a different route in the name of incentives and perquisites etc to avoid not only paying their employers the due but also to avoid paying taxes to governments.  This sector goes unchecked and uncontrolled by the governmental agencies.  There are not strict rules or policies to determine the rate of incentives and t frame rules for making them pay the minimum atleast.   Therefore for the present, better change the company/organisation and look for a better one.

1 Like

Kumar Doab (FIN)     11 August 2014

1.First of all determine whether BPO employees are covered in Min. Wages Act or not? If not then under which category and head company has determined the wages?


2.The local o/o Labor Commissioner get notifications on updations in Min. Wages.

Obtain  copies of all years of employment even if thru RTI and relate and determine whether company followed it or not.


3. United employees can form "Works Committees' in  companies  and negotiate wages and even incentives and T&C.

Works Committee is an authority under ID Act.


Speak to Employee's unions of BPO employee's e.g. CBPOP, Trade Unions e.g. AITUC, INTUC, 

Attached File : 959730420 challenges for organising bpo workers in india.doc, 959730420 trade unions in karnataka.doc, 959730420 works committe is authority under id act.pdf downloaded: 61 times
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