Minimum Wage Report INDIA

www.paycheck.in

Minimum Wage In India

Legislative protection for workers to receive a minimum wage, can be considered as the hall mark of any progressive nation. It is one of the fundamental premises of decent work. In India, the Minimum Wages Act, 1948 provides for fixation and enforcement of minimum wages in respect of scheduled employments.

The Act aims to prevent sweating or exploitation of labour1( According to the NSSO (2004-05) 61st round, around 395 million workers (86%) out of the total workforce of around 457 million workers constitute the

unorganized/informal sector. In fact 7% of those employed in organized sector has been identified as informal workers raising the toll of informal sector to 422 million (92%). )through payment of low wages by ensuring a minimum subsistence wage for workers. The Act also requires the appropriate government (both at Centre and States) to fix minimum rates of wages in respect of employments specified in the schedule and also review and revise the same at intervals not exceeding five years.

Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number is 1596 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage has been increased to Rs 100 per day from Rs 80 per day (which was in effect since 2007).

Since the respective state governments have been empowered to independently fix minimum wages, disparities between wages in

neighbouring states are common. In order to reduce this problem and bring comparability the Central government has set up 5 regional committees (table below)2 for harmonization of minimum wages.

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 1

Minimum Wage Rates

Area-wise Minimum Rates of Wages in the Central Sphere w.e.f April 1, 2011
Sr. No. Name of Scheduled Employment Category of Workers Rate of wages including VDA per day Area A Unskilled Semi skilled/Unskilled 1 Agriculture Skilled / Clerical Highly Skilled 201 224 185 206 170 185 169 185 Area B 153 171 Area C 151 156

1. Excavation & removal of over burden with 50 m (a) Soft Soil (b) Soft Soil with Rock (c) Rock 2 Worker engaged in Stone Mines for Stone Breaking and Stone Crushing 2. Removal and Staking of 165.4 250.65 331.82 131.93

Stone Breaking or Stone Crushing for the stone size (a) 1.0 inch to 1.5 inches (b) Above 1.5 inches to 3.0 (c) Above 3.0 inches to 5.0 (d) Above 5.0 inches 1030.01 880 514.47 422.23 247 247 273 247 247 273 301 327 Above Ground Unskilled 165 205 247 287 205 205 232 205 205 232 273 301 165 165 192 165 165 192 232 273

3 4

Sweeping and Cleaning Watch and Ward

Unskilled Without Arms With Arms Unskilled

Loading and Unloading

Unskilled Semi skilled/Unskilled

Construction

Skilled / Clerical Highly Skilled

Below Ground 205 247 287 327

Non-Coal Mines

Semi skilled / Unskilled Skilled / Clerical Highly Skilled

For More Information on Minimum Wages in India Kindly visit www.paycheck.in Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 2

Delhi
Minimum Wages w.e.f. February 1, 2011 Minimum Wages in Delhi Hiked By 15 Percent.
The decision was taken at a cabinet meeting headed by Chief Minister Sheila Dikshit. The revised rates will be effective from February 1, 2011.Revised Wages were announced by the Labour Minister Ramakant Goswami

Category of Workers

Minimum Wages per Day (in Rs.) 234 259 285 259 285 310

Minimum Wages per Month (in Rs.) 6084 6734 7410 6734 7410 8060

Unskilled Semi Skilled Skilled Non Matriculate Matriculate Graduate

* Detailed list of Scheduled employment and minimum wages shall be provided soon.

For More Information on Minimum Wages in India Kindly visit www.paycheck.in

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 3

Himachal Pradesh
Minimum Wages w.e.f October 1, 2010
Sr. No. Scheduled Employment Category of Workers Highly Skilled Skilled 1 Agriculture Semi-Skilled Un-Skilled Clerical and Non Technical Supervisory Staff Highly Skilled Skilled 2 Chemical and Chemical Products Semi-Skilled Un-Skilled Clerical and Non Technical Supervisory Staff Highly Skilled Construction or Maintenance of Roads or Building. Operations, Stone Breaking & Stone Crushing Skilled Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff Highly Skilled Establishments with manufacturing Process as defined in clause (K) of section-2 of Factories Act, 1948 Skilled Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff Highly Skilled Skilled 5 Engineering Industries Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff Highly Skilled Skilled 6 Forestry Industries Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff 120 151.2 151.2 123.25 120 134.15 193.8 193.8 151.2 132 120 151.2 144 135.25 126.55 120 144 134.15 126 120 120 Total Minimum Wages per Day (in Rs.)

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 4

Himachal Pradesh
Minimum Wages w.e.f October 1, 2010
Sr. No. Scheduled Employment Category of Workers Highly Skilled Skilled 7 Hotel and Restaurant Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff Highly Skilled Skilled 8 Private Educational Institute Semi-Skilled Un-Skilled Clerical and Non Technical Supervisory Staff Highly Skilled Skilled 9 Public Motor Transport Semi-Skilled Un-Skilled Clerical and Non Technical Supervisory Staff Highly Skilled Skilled 10 Shops & Commercial Establishments Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff Highly Skilled Skilled 11 Tea Plantation Semi-Skilled Un-Skilled Clerical and Non Technical Supervisor Staff For More Information on Minimum Wages in India Kindly visit www.paycheck.in 120 169.80 146.2 127.2 120 145.8 160.35 151.2 131 120 135.25 126.55 120 Total Minimum Wages per Day (in Rs.) 160.35 151.2 131 120

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 5

Lakshadweep
Minimum Wages w.e.f November 1, 2010

Sr. No.

Scheduled Employment

Category of Worker

Minimum V.D.A. Wages

Total Minimum Wages Per Day (in Rs.) 121.00 131.00 141.00 146.00 121.00 131.00 141.00 146.00

Unskilled Construction or Semiskilled / Unskilled Supervisory maintenance of Roads and Building Skilled / Clerical Operations Highly skilled Unskilled Semiskilled/Unskilled Supervisory 2 Harbours Works Skilled/Clerical Highly Skilled Department of Fisheries 3 Unskilled (a) Boat Building Yard Semiskilled/Unskilled Supervisory (b) Canning Factory Highly Skilled Non-Scheduled Employment Unskilled 4 All Departments/Orga Semiskilled/Unskilled Supervisory Skilled/Clerical Highly Skilled

115.00 125.00 135.00 140.00 115.00 125.00 135.00 140.00

6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00

115.00 135.00 140.00

6.00 6.00 6.00 6.00

121.00 141.00 146.00 6.00 121.00 131.00 141.00 146.00

115.00 125.00 135.00 140.00

6.00 6.00 6.00 6.00

For More Information on Minimum Wages in India Kindly visit www.paycheck.in

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 6

Mizoram
Minimum Wages w.e.f April 1, 2009

Sr. No.

Schedule Employment

Category of Workers

Total Minimum Wages per Dat (In Rs.) 235.00 184.00 148.00 132.00 235.00 184.00 148.00 132.00 235.00 184.00 148.00 132.00 235.00 184.00 148.00 132.00

Skilled Grade II Skilled Grade I 1 Agriculture Semi skilled/Unskilled Supervisory Unskilled Skilled Grade II Construction of Roads & Building Skilled Grade I Semi skilled/Unskilled Supervisory Unskilled Skilled Grade II Skilled Grade I 3 Transport Semi skilled/Unskilled Supervisory Unskilled Skilled Grade II Skilled Grade I 4 Industries Semi skilled/Unskilled Supervisory Unskilled

Note 1 : The existing rate of minimum rates of wages is for the workers employed in different schedule employments in the Government Departments, Semi-Government, Private Undertakings and on contract basis.

For More Information on Minimum Wages in India Kindly visit www.paycheck.in

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 7

Minimum Wage Legislation

Frequently Asked Question

1.

Is there a separate minimum wage legislation in India ?

Yes, there is a separate minimum wage legislation in India. Minimum Wages Act, 1948 is an Act to provide for fixing minimum rates of wages in certain employments and it extends to the whole of India.

2.

Do one or more minimum wage/s, exists in India ?

There exists more than one minimum wages in India. As per Section 2 of the Act and Section27, 28 it is mentioned that State as well as Centre has the power to form Minimum Wage rates 3. At what level are minimum wages determined ? In India, minimum wages are declared at national, regional, sectoral and occupational or skill level. As per Section 3 of the Act minimum rates of wages may be fixed at national & state level. Also, Section 3 (3) of the Act specifies that minimum rates of wages may be fixed for different skills and occupations 4. On what basis is/are minimum wage/s declared ?

Minimum wages in India is declared on daily, hourly, and monthly basis. As per section 3 (b) of the Act defines that Minimum Wages are as per the piece rate, hour rate, and monthly rate as well In case of daily/weekly/monthly minimum wage, are number of working hours considered while fixing minimum wages ?

5.

As per Section3 (14) (b) of the Act there has not been any specific time period. But may be in accordance to the period fixed under section 4 of the Payment of Wages Act, 1936 (4 of 1936)

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 8

Minimum Wage Legislation

Frequently Asked Question
6. Who all are involved in setting minimum wages ? As per Section 9 of the Act uprating are based on decision jointly made by the Government, employer and trade union representatives 7. How are upratings (adjustments) of minimum wage/s decided upon ? As per Section 9 of the Act uprating are based on decision jointly made by the Government, employer and trade union representatives 8. Which are the components of minimum wages in India ? Minimum wages in India has both fixed and variable component. Section 4 mentions that minimum wages may be inclusive of basic pay and with special allowance on which it is based. 9. How frequently is the fixed component of minimum wages updated ? Fixed component of minimum wages are updated in more than 2 years. Section 3 of the Act mentions that the period for revision of fixed component of minimum wages can be anywhere within 5 years of its fixation. 10. What are the yardsticks on which minimum wage revisions are based ? Section 4 of the Act mentions that Minimum wages are based on basic wages and cost of living index. The yardsticks on which minimum wage is revised are: (a) Three consumption units per earner, (b) Minimum food

requirement of 2700 calories per average Indian adult, (c ) Cloth requirement of 72 yards per annum per family, (d) Rent corresponding to the minimum area provided under the Government's Industrial Housing Scheme (e) Fuel, lighting and other miscellaneous items of expenditure to constitute 20 % of the total Minimum Wages (f) Children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. should further constitute 25% of the total Minimum Wage.

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 9

Minimum Wage Legislation

Frequently Asked Question

11.

What is the national poverty line? (In national currency)

The national poverty line is Rs. 356.30 in rural areas and Rs. 538.60 in urban areas, per capita per month as updated by all-India poverty lines 2004-05

12.

How often is poverty line updated ?

This scheme is included under Five Year plan as per the Planning Commission of India. Hence, poverty line is updated in every 5 years.

13.

When was poverty line last updated ?

Poverty line was last updated in the year 2004-2005

14.

What is the percentage of minimum wage relative to the current poverty line ?

The percentage of minimum wage relative to the current poverty line is 581.65% (100*26/447*100). National Floor level of minimum wage (Rs 100 per person per day) has been used to calculate this figure. In order to derive monthly minimum wage, Minimum Wage rate is multiplied by 26 (number of work days in a month). National poverty line is calculated by taking an average of the rural and urban poverty line (Rs 447 per person per month).

15.

How is minimum wages compliance regulated ? As per section 19 of Minimum Wages Act, 1948 the appropriate government may by notification in the Official Gazette appoint such persons as it thinks fit to be Inspector for the purposes of this Act and define the local limits within which they shall exercise their functions.

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 10

Minimum Wage Legislation

Frequently Asked Question

16.

Which legal sanctions can be applied if compliance is lacking ?

In case of non compliance, fines, imprisonment and payment of arrears can be applied as per law. Section 22 of the Act mentions that if any one contravanes the rules formed under the Act he may be punished to pay fine, imprisonment which may extend to period of six months or payment of arrears by the employer to the employee.

17.

Are employer and/or trade union representatives involved in compliance procedures ?

Information pertaining to this is not specified in the Minimum Wage Act.

18.

To whom/where can individuals complain, if they think they are earning less than minimum wages ?

In case individuals earn less than specified minimum wages, they can complain to Labour Inspectorate coordinates or Trade Union Coordinates. As per section 19 of Minimum Wages Act, 1948, government may appoint such person as it thinks fit to be Inspectors for the purposes of this Act. As per section 20 (2) of Minimum Wages Act, 1948 it mention that employee can make complain in writing by himself or through any legal practitioner or any official of a registered trade union authorised to act on his behalf or any Inspector or any person acting with the permission of the authority.

Authorship of Minimum Wage Database with WageIndicator Foundation, Amsterdam; Amsterdam University of Advanced Labour Studies; Indian Institute of Management Ahmedabad. Supported by www.paycheck.in 11

Indian Institute of Management

Vastrapur Ahmedabad -380 015 India

Amsterdam Institute for Advanced Labour Studies (AIAS)

University of Amsterdam Plantage Muidergracht 12 1018 TV Amsterdam The Netherlands

WageIndicator Foundation
Plantage Muidergracht 12, 1018TV Amsterdam, The Netherlands [email protected]

Powered by:

Wageindicator.org