E.A.MURUGAN (ADVOCATE) 03 December 2010

Question of Minimum wages by ESI

Dear Sir/Madam

For Example. Minimum Wage is Rs/-3500/PM for a Security Person as per minimum wages act. I pay Rs/-2500/PM. Both employer and employee are accepted this wage. But the ESI authority while inspection, it demands the contribution for Minimum Wages not for the actual wage paid i.e.2500/- I argued that the employeee is accepting and I am paying. I am not able to pay more than 2500/PM. But ESI authoriry refused to accept the views. MY Question is, whether ESI Authoriy can ask the question on Minimum Wages Act ? since there is separte authority for implementiong the minimum wages act. I need any valid judgement in this regard to curtail interfering othe acts. By E.A.MURUGAN , ADVOCATE 9842763303

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3 Replies

Kamal Prasoon Sinha (Service) 24 December 2010

Dear Mr. Murugan,

The basic point is what you are doing is not following the statutory obligations which may invite penal action by the concerned authorities (Labor dept).

Even if paying below minimum wage is agreed by the employer and employee it is wrong and the Minimum Wages Act will override any agreemnt signed between the employer and the employee.

So instead of making things more complicated by asking who can your action & who can not, its better you fulfill your statutory obligation and pay as per the minimum wages act.

Regards,
Kamal Prasoon Sinha

Rashmita Saikia (Lawyer) 28 December 2010

yes, Mr. Kamal Prasoon Sinha is right.

As per Minimum Wages Act, no employee should be paid less than the minimum wage by the employer.

"Employer who pays to any employee less than the minimum rates of wages fixed for that employee's class of work or less than the amount due to him or contravents any provision under section 12 of the Act, shall be punished with imprisionment not less than 6 months or fine of Rs. 5,000/- or both."

Regards,

Rashmita