Implementation of minimum wages for all sector employees.

Implementation of minimum wages for all sector employees.
Thursday, December 27, 2018
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Dear all,      

Your association SIMA is forwarding herewith an article published in Divyabhaskar dated 25th December 2018.

As per the news, The Parliamentary Standing Committee attached to the Union Labour Ministry has recommended the implementation of minimum wages for all sector employees. Whether the sector is recognized by the government or not. 

The committee recommended:

Workers in every sector should get minimum wages, The employer who does not pay minimum wages will have to pay a penalty of 10 lakh rupees and will be on 5-year revision. Employees cannot be employed for more than 8 hours.

The minimum wage will be applicable to all sectors, organized or unorganized. The employer who does not pay minimum wages will have to pay a fine to the tune 10 lakh Rupees. The employer shall not engage any worker for more than 8 hours. Employees cannot be engaged beyond 8 hours even under the pretext of the urgencies. Experienced and fresher’s will not have the same wage for both. Experience will be given importance.

Minimum Wage will be revised every five years. There will be a National Minimum Wage on which all state will fix a minimum wage for their state. It is mandatory to do The Parliamentary Committee has given its report to the Lok Sabha. Last year, the Code of Salary Bill was declared in the Lok Sabha, which has been given the Standing Committee. Now the committee has submitted its report to the Lok Sabha. The recommendation of the Standing Committee to give finalization of any law which is very important. The Standing Committee is also known as the Mini Parliament. According to the committee report, the minimum wage will benefit about 48 crore people working across the country. According to the committee, 82.7% of these 48 crore employees work in the unorganized sector.

There will be no bonus for workers with daily wages. Participants in the minimum wage recommend their recommendation that there is no minimum wage for the same work. That is, women should not get fewer wages for the same work. Committee said that if an experienced person goes for a job in any organization, it is considered equal to entry-level employees while their experience should be kept in mind while employing experienced workers. Committee told the Labor Ministry that the bonus is not a part of minimum wages and should be excluded. However, the ministry said to the committee that the bonus has been separated from the minimum labour component. The amount given in the overtime allowance, travel allowance, PF, Gratuity and pensions will not be considered as part of the minimum wage. All states have the right to reimburse minimum wages, but the period of revision should not be more than 5 years in any case.

The provision of National minimum wage

Committee has suggested that central government shall fix National minimum wages in consultation with state governments. As per the recommendation of the committee TDS, ESIC & PF contribution deducted shall not be the part of salary/wages. The committee further recommended that the deduction by the employer in the name of ESIC/PF is not proper the committee observed that provision of penalty up to Rupees 50000 is not adequate and the penalty should be imposed for Rupees 10 lakh In case of default of the employer in the implementation of minimum wage.


This is for your kind information.


Thanking you,

With regards,

For Silvassa Industries & Manufacturers Association,

Narendra Trivedi,



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