Minimum wages in India – Types, Industries, and Penalties
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Minimum wages in India – Types, Industries, and Penalties

Hello Everyone, in this post we will look into the Minimum Wages in India, the types of labour, industries, exclusions as well as penalties.

In this post we cover the topics as mentioned below:

What is the Minimum Wages Act?

This is an Act of Parliament concerning Indian labour law that sets the minimum wages which must be paid to skilled and unskilled labours.

When India introduced this act in 1948, it gave both the Central Government and State Government higher authority to fix wages.

Thus, this act became legally non-binding but statutory. If the payment of wages to a worker is below the accepted minimum wage rate, then it is termed forced labour.

A fair wage is a level of wage that not just maintains a level of employment but also seeks to increase it keeping in mind the industry’s capacity to pay.

The concept of a minimum wage gives a guarantee of basic livelihood and preserves efficiency. It also provides for education, medical requirements, and some level of comfort to the worker.

 

Latest update for the state of Telangana and Hyderabad

The commissioner of labour, Telangana, Hyderabad & the competent authority under the Minimum Wages Act, 1948, has declared the average state industrial workers Consumer Price Index Number for the half year ending Dec, 2021 as follows :- 

 

Part-I ( Industrial workers): Increase of 32 points from 1595 to 1627

Part-II ( Agricultural Workers): Increase of 34 points from 1194 to 1228

 

These are applicable for the period from 01.04.2022 to 30.09.2022 in various scheduled Employment notified under the Minimum Wages Act, 1948, in the state of Telangana for the purpose of calculation of Various Dearness Allowances. 

To know more about the Minimum wages in UP and Uttarakhand.

Different types of labour

  • Unskilled
  • Semi-skilled
  • Skilled

(i) Unskilled:

The one who does simple duties, which only requires little or no previous experience. It is necessary to have familiarity with the working environment.

His work thus may require in addition to physical exertion familiarity with a variety of articles or goods.

(ii) Semi-skilled:

A semi-skilled worker has a defined routine nature where he does not need much of the judgment, skill, and but for the proper discharge of duties given to him.

The important decisions are generally made by others. His work is limited to the performance of routine operations of limited scope.

(iii) Skilled:

A skilled employee is capable of working efficiently of practising independent judgment and doing his duties responsibly.

He must have a thorough knowledge of the trade, craft, or industry in which he is employed.

Minimum wages in India - Different types of labour..

Industries

The rate of wages within the scheduled employments is different across states, sectors, skills, regions, and occupations as a result of the distinction in cost of living, regional industries capability to pay, consumption patterns, etc.

Hence, there is no single uniform minimum wage rate across the country and the structure has now become very complex.

Now let us look into the State of Karnataka – Chemical Industry (Zone-1) for example:

Chemical Industry (Zone-1)
Skill LevelBasic per Day (in Rs.)VDA per Day (in Rs.)Total per Day (in Rs.)
High skilled worker593.2126.26619.47
Skilled worker539.2826.26565.54
Semi-skilled worker490.2526.26516.51
Unskilled worker445.6926.26471.95
Office Staff Accountant, Manager631.0026.26657.26
Office boy peon, Servant / Watchman / Lift operator, Attender, Helper, Mazdoor, and Equivalent Job445.6926.26471.95
Driver539.2826.26565.54

Exclusions

  • Workers: The wages given to disabled people and those payable to a dependent family member of the employer.
  • Industries: Unscheduled industries are generally excluded. But with every revision, a state can add a minimum wage for an occupation or specify it for a sector.

Offences and penalties

Violation of the Minimum Wages Act like on the working hours and others come under the Central Act get a penalty of five years of imprisonment and Rs. 10,000 fine under section Act 22.

Any agreement whereby an employee reduces his right under this act shall be null and void.

 

Rates of Minimum Wages for States

Delhi

Class of Employment

Class of WorkersBasic Per MonthVDA Per MonthTotal Per DayTotal Per Month
UnskilledNA14842.00 1222.00 618.00

16064.00

Skilled

NA16341.00 1352.00 681.00 17693.00
Semi-skilledNA17991.00 1482.00 749.00

19473.00

Clerical And Supervisory Staff

Non – Matriculants 16341.00 1352.00 681.00 17693.00
Clerical And Supervisory StaffMatriculates But Not graduates 17991.00 1482.00 749.00

19473.00

Clerical And Supervisory Staff

Graduate and Above 19572.00 1612.00 815.00

21184.00

 

Gujarat 

Class of Employment

ZoneBasic Per DayVDA Per DayTotal Per DayTotal Per Month
UnskilledZone I276.0072.00348.00

9048.00

Unskilled

Zone II268.0072.00340.008840.00
Semi-SkilledZone I284.0072.00356.00

9256.00

Semi-Skilled

Zone II276.0072.00348.009048.00
SkilledZone I293.0072.00365.00

9490.00

Skilled

Zone II284.0072.00356.00

9256.00

 

 Haryana

Class of Employment

Basic Per DayBasic Per MonthTotal Per Day

Total Per Month

Unskilled

292.317600.00377.049803.24
Semi Skilled Class A306.927980.00395.89

10293.36

Semi-Skilled Class B

322.278379.00415.6910808.02
Skilled Class A338.388797.95436.47

11348.43

Skilled Class B

355.309237.85458.3011915.86
Highly Skilled373.079699.74481.21

12511.65

 

 Himachal Pradesh

Class of Employment

Without benefits

Total per day

With benefits

Total per month

With benefits

Total per day

With benefits

Total per month

Unskilled

300.009000.00274.478234.00
Semi – Skilled316.999510.00289.12

8674.00

Skilled

384.2110446.00320.069602.00
Highly skilled384.2110446.00320.06

9602.00

 

Jharkhand 

Class of Employment

Basic Per  DayBasic Per MonthVDA Per DayVDA Per MonthTotal Per DayTotal Per Month
Unskilled274.817145.0640.151043.89314.96

8188.95

Semi-skilled

287.907485.4042.061093.62329.968579.02
Skilled/Clerical379.519867.2655.451441.60434.96

11308.86

Highly Skilled

438.3911398.1464.051665.27502.44

13063.41

 

Maharashtra 

Class of Employment

ZoneBasic Per  MonthHRA Per MonthVDA Per MonthTotal Per Day

Total Per Month

Unskilled

Zone I10021.00590.751794.00454.4211815.00
UnskilledZone II9425.00560.951794.00431.50

11219.00

Unskilled

Zone III8828.00531.101794.00408.5410622.00
Semi-skilledZone I10856.00632.501794.00486.54

12650.00

Semi-skilled

Zone II10260.00602.701794.00463.6212054.00
Semi-skilledZone III9664.00572.901794.00440.69

11458.00

Skilled

Zone I11632.00671.301794.00516.3813426.00
SkilledZone II11036.00641.501794.00493.46

12830.00

Skilled

Zone III10440.00611.701794.00470.5412234.00
Security Guard/Lady Security Guard – Security ServicesMumbai/Thane12082.002775.201794.00533.69

13876.00

Head Guard – Security Services

Mumbai/Thane12357.002830.201794.00544.2714151.00
Security Supervisor – Security ServicesMumbai/Thane13057.002970.201794.00571.19

14851.00

Assistant Security Officer – Security Services

Mumbai/Thane13282.003015.201794.00579.8515076.00
Security Officer – Security ServicesMumbai/Thane13732.003105.201794.00597.15

15526.00

Chief Security Officer – Security Services

Mumbai/Thane14182.003195.201794.00614.4615976.00
Security Guard/Lady Security Guard – Security ServicesPune7400.001992.905886.00511.00

15278.90

Head Guard – Security Services

Pune7500.002007.905886.00514.8515393.90
Security Supervisor – Security ServicesPune8000.002082.905886.00534.08

15968.90

Assistant Security Officer – Security Services

Pune8500.002157.905886.00553.3116543.90

Security Officer – Security Services

Pune9000.002232.905886.00572.54

17118.90

Chief Security Officer – Security ServicesPune9400.002292.905886.00587.92

17578.90

 

Rajasthan

Class of Employment

Total Per DayTotal Per Month
Skilled276.00

7176.00

Unskilled

252.006552.00
Semi-skilled264.00

6864.00

Highly Skilled

326.00

8476.00

 

Tamil Nadu

Class of Employment

CategoryBasic Per DayVDA Per DayVDA Per MonthBasic Per MonthTotal Per Month
Manager/ Sales Manager/ Field Officer/ Development Officer/ Office InchargeZone A229.23168.2343745960

10334

Manager/ Sales Manager/ Field Officer/ Development Officer/ Office Incharge

Zone B227.31168.234374591010284
Manager/ Sales Manager/ Field Officer/ Development Officer/ Office InchargeZone C225.31168.2343745858

10232

Manager/ Sales Manager/ Field Officer/ Development Officer/ Office Incharge

Zone D392168.234374581810192
Assistant Manager/ Accountant/ Supervisor/ Sales Executive/ Purchaser/ Store-keeper/ Agent/ Sales PromotionEmployeesZone A213.38124.6243745548

9922

Assistant Manager/ Accountant/ Supervisor/ Sales Executive/ Purchaser/ Store-keeper/ Agent/ Sales PromotionEmployees

Zone B211.38124.62437454969870
Assistant Manager/ Accountant/ Supervisor/ Sales Executive/ Purchaser/ Store-keeper/ Agent/ Sales PromotionEmployeesZone C209.46124.6243745446

9820

Assistant Manager/ Accountant/ Supervisor/ Sales Executive/ Purchaser/ Store-keeper/ Agent/ Sales PromotionEmployees

Zone D375.77124.62437453969770
Cashier/ Clerk/ Typist-cum- Clerk/ Typist/ Stenographer/ Salesman/ Sales Representative/ Auction Bidder/ Tradesman/ Bill WriterZone A211.81124.6243745507

9881

Cashier/ Clerk/ Typist-cum- Clerk/ Typist/ Stenographer/ Salesman/ Sales Representative/ Auction Bidder/ Tradesman/ Bill Writer

Zone B209.46124.62437454469820
Cashier/ Clerk/ Typist-cum- Clerk/ Typist/ Stenographer/ Salesman/ Sales Representative/ Auction Bidder/ Tradesman/ Bill WriterZone C207.19124.6243745387

9761

Cashier/ Clerk/ Typist-cum- Clerk/ Typist/ Stenographer/ Salesman/ Sales Representative/ Auction Bidder/ Tradesman/ Bill Writer

Zone D373.54124.62437453389712
Bill Collector/ Booking Clerk/ Bill clerk/ Godown Keeper/ Assistant Salesman/ Godown incharge/ Accounts Assistant/ Receptionist/ Lineman/ Tally Clerk/ Security Guard/ Weighman/ DriverZone A209.88124.6243745457

9831

Bill Collector/ Booking Clerk/ Bill clerk/ Godown Keeper/ Assistant Salesman/ Godown incharge/ Accounts Assistant/ Receptionist/ Lineman/ Tally Clerk/ Security Guard/ Weighman/ Driver

Zone B207.54124.62437453969770
Bill Collector/ Booking Clerk/ Bill clerk/ Godown Keeper/ Assistant Salesman/ Godown incharge/ Accounts Assistant/ Receptionist/ Lineman/ Tally Clerk/ Security Guard/ Weighman/ DriverZone C205.31124.6243745338

9712

Bill Collector/ Booking Clerk/ Bill clerk/ Godown Keeper/ Assistant Salesman/ Godown incharge/ Accounts Assistant/ Receptionist/ Lineman/ Tally Clerk/ Security Guard/ Weighman/ Driver

Zone D371.5124.62437452859659
Peon/ Watchman/ Shop Assistant/ Helper/ Packer/ Attender/ Delivery Boy/ Messenger/ Lift Operator/ Shop Boy/ Water Boy/ Sweeper/ Gardener/ ScavengerZone A207.54124.6243745396

9770

Peon/ Watchman/ Shop Assistant/ Helper/ Packer/ Attender/ Delivery Boy/ Messenger/ Lift Operator/ Shop Boy/ Water Boy/ Sweeper/ Gardener/ Scavenger

Zone B205.31124.62437453389712

Peon/ Watchman/ Shop Assistant/ Helper/ Packer/ Attender/ Delivery Boy/ Messenger/ Lift Operator/ Shop Boy/ Water Boy/ Sweeper/ Gardener/ Scavenger

Zone C202.88124.62437452759649
Peon/ Watchman/ Shop Assistant/ Helper/ Packer/ Attender/ Delivery Boy/ Messenger/ Lift Operator/ Shop Boy/ Water Boy/ Sweeper/ Gardener/ ScavengerZone D368.92124.6243745218

9592

 

Class of Employment

Special Category ZoneBasic Per DayVDA Per DayVDA Per MonthBasic Per MonthTotal Per Month
Operator in Petrol Bunks.Zone A207.54124.6243745396

9770

Operator in Petrol Bunks.

Zone B205.31124.62437453389712
Operator in Petrol Bunks.Zone C202.88124.6243745275

9649

Operator in Petrol Bunks.

Zone D368.92124.62437452189592
Photo Frame Worker and CutterZone A211.81124.6243745507

9881

Photo Frame Worker and Cutter

Zone B209.46124.62437454469820
Photo Frame Worker and CutterZone C207.19124.6243745387

9761

Photo Frame Worker and Cutter

Zone D373.54124.62437453389712
Skilled Labour in Lift Installing Establishments/ Air Condition Plant OperatorZone A213.38124.6243745548

9922

Skilled Labour in Lift Installing Establishments/ Air Condition Plant Operator

Zone B211.38124.62437454969870
Skilled Labour in Lift Installing Establishments/ Air Condition Plant OperatorZone C209.46124.6243745446

9820

Skilled Labour in Lift Installing Establishments/ Air Condition Plant Operator

Zone D375.77124.62437453969770
Fruit Juice and Lassi Makers in the shopsZone A209.88124.6243745457

9831

Fruit Juice and Lassi Makers in the shops

Zone B207.54124.62437453969770
Fruit Juice and Lassi Makers in the shopsZone C205.31124.6243745338

9712

Fruit Juice and Lassi Makers in the shops

Zone D371.5124.62437452859659
Engraver in Steel and Aluminum Vessels shopsZone A211.81124.6243745507

9881

Engraver in Steel and Aluminum Vessels shops

Zone B209.46124.62437454469820
Engraver in Steel and Aluminum Vessels shopsZone C207.19124.6243745387

9761

Engraver in Steel and Aluminum Vessels shops

Zone D373.54124.6243745338

9712

 

Uttar Pradesh

Class of Employment

Basic Per MonthVDA Per MonthTotal Per DayTotal Per Month
Unskilled5750.003434.00353.23

9184.00

Semi-skilled

6325.003777.29489.0010102.29
Skilled7085.004231.16435.23

11316.16

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