Minimum Wages – Do NGOs need to comply?
NGOs often raise the question
whether they should be paying minimum wages to their employees or
whether the Minimum Wages Act applies to NGOs, whether registered as
a charitable trust, society under the Act of 1860 or a company u/s 8
of the Indian Companies Act?
whether they should be paying minimum wages to their employees or
whether the Minimum Wages Act applies to NGOs, whether registered as
a charitable trust, society under the Act of 1860 or a company u/s 8
of the Indian Companies Act?
While the Minimum Wages Act 1948
does not make any specific reference to NGOs under any of the
‘scheduled employments’, it is applicable besides industries and
factories to ‘establishments’ registered under the Bombay shops &
establishment Act 1948 or the Factories Act 194, irrespective to the
strength of employment. In other words even if an NGO registered
under the Bombay shops & establishment Act has just one employee,
the NGO must pay Minimum Wage to that employee.
does not make any specific reference to NGOs under any of the
‘scheduled employments’, it is applicable besides industries and
factories to ‘establishments’ registered under the Bombay shops &
establishment Act 1948 or the Factories Act 194, irrespective to the
strength of employment. In other words even if an NGO registered
under the Bombay shops & establishment Act has just one employee,
the NGO must pay Minimum Wage to that employee.
Minimum wage
rates in India are fixed under the Minimum Wages Act, 1948.
Since labour is a concurrent subject under the Indian Constitution,
minimum wage rates are determined both by the Central Government and
the Provincial Governments. Minimum wage rates in India are declared
at the National, State, Sectoral and skill/occupational levels.
rates in India are fixed under the Minimum Wages Act, 1948.
Since labour is a concurrent subject under the Indian Constitution,
minimum wage rates are determined both by the Central Government and
the Provincial Governments. Minimum wage rates in India are declared
at the National, State, Sectoral and skill/occupational levels.
Minimum wage
rates may be established for any region, occupation and sector. Also,
minimum wage is established for trainees, youth and piece-rate
workers. Minimum wage is determined by considering the cost of
living.
rates may be established for any region, occupation and sector. Also,
minimum wage is established for trainees, youth and piece-rate
workers. Minimum wage is determined by considering the cost of
living.
Minimum rate
of wages may consist of a basic rate of wages and
a cost of living allowance; or a basic rate of wages, with or without
the cost of living allowance, and the cash value of concessions in
respect of the supply of essential commodities at concession rates
(if authorized); or an all-inclusive rate allowing for the basic
rate, the cost of living allowance and the cash value of the
concessions (if any).
of wages may consist of a basic rate of wages and
a cost of living allowance; or a basic rate of wages, with or without
the cost of living allowance, and the cash value of concessions in
respect of the supply of essential commodities at concession rates
(if authorized); or an all-inclusive rate allowing for the basic
rate, the cost of living allowance and the cash value of the
concessions (if any).
While fixing
or revising minimum rates of wages, different minimum rates of wages
may be fixed for different scheduled employments;
different classes of work in the same scheduled employment; adults,
adolescents, children and apprentices; and different localities. The
minimum wage rates may be fixed by hour, day, month or any such other
larger wage period as may be prescribed.
or revising minimum rates of wages, different minimum rates of wages
may be fixed for different scheduled employments;
different classes of work in the same scheduled employment; adults,
adolescents, children and apprentices; and different localities. The
minimum wage rates may be fixed by hour, day, month or any such other
larger wage period as may be prescribed.
Minimum wage
is announced for 45 scheduled employments
in the Central Sphere while the State level minimum wage is
determined by every state keeping in view the sectors more dominant
in the State.
is announced for 45 scheduled employments
in the Central Sphere while the State level minimum wage is
determined by every state keeping in view the sectors more dominant
in the State.
The term ‘Minimum Wage’
includes the Basic Wage plus Special allowance, as prescribed &
published by the Labour Department from time to time for a given
schedule of employment.
includes the Basic Wage plus Special allowance, as prescribed &
published by the Labour Department from time to time for a given
schedule of employment.
For example Maharashtra State has
brought out the ‘Total Minimum Wages’ Chart for
the Period 1st
January 2017 to 30th
June 2017.
brought out the ‘Total Minimum Wages’ Chart for
the Period 1st
January 2017 to 30th
June 2017.
The table
for Shops & Commercial Establishments is as follows:
for Shops & Commercial Establishments is as follows:
Special Allowance: Rs. 3,256.20
|
|
Zone
I |
Zone
II |
Zone
III |
|
Skilled
|
Rs.
9,056.20 |
Rs.
8,756.20 |
Rs.
8,456.20 |
|
Semi-skilled
|
Rs.
8,656.20 |
Rs.
8,356.20 |
Rs.
8,056.20 |
|
Un-skilled
|
Rs.
8,256.20 |
Rs.
7,956.20 |
Rs.
7,656.20 |
Zone
I: Shall comprise of the areas falling
within the limits of Municipal Corporation.
I: Shall comprise of the areas falling
within the limits of Municipal Corporation.
Zone
II: Shall comprise of the areas falling
within the limits of ‘A’ & ‘B’ grade Municipal Councils.
II: Shall comprise of the areas falling
within the limits of ‘A’ & ‘B’ grade Municipal Councils.
Zone III: Shall comprise of all
other areas in the state, not included in Zone I and Zone II.
other areas in the state, not included in Zone I and Zone II.
In accordance with the Minimum
Wage Act, the employer is obliged to pay wages on regular and timely
basis at least once a month. Wage period may be fixed on
hourly, daily, weekly or monthly basis. If the employment of a worker
is terminated by or on behalf of the employer, the outstanding wages
are paid within two days of employment termination. Wage periods
can’t be fixed for duration longer than one month.
Wage Act, the employer is obliged to pay wages on regular and timely
basis at least once a month. Wage period may be fixed on
hourly, daily, weekly or monthly basis. If the employment of a worker
is terminated by or on behalf of the employer, the outstanding wages
are paid within two days of employment termination. Wage periods
can’t be fixed for duration longer than one month.