Minimum Wage

Law

Good To Know : How To Report Minimum Wage Law Violation In India?

Pavan Manikanta Kumar

August 27th, 2016

SHARES

In India, there are a variety of Central and State labour laws which govern the relationship between employee and employer. Many of us have faced or likely to face poor work environment at some point in our career.The issue can be related to salary, wages, working conditions, office politics ,sexual harassment and etc. Generally, if we face any issues with our employer the advice was given is to change the job as very few have courage or resources to taken on their employer and fight for their rights.

Both center and state labour laws prescribe a minimum wage to be paid basing on the variety of work. These laws are known as “Minimum Wages Act, 1948”., the objective of this act is “To provide for fixing minimum rates of wages in certain employments “. As per the minimum wage acts, Rs.137 per day is the minimum wage in India. For the complete list of minimum wages  under central sphere visit Chief Labour Commissioner Central.

Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number is 1650 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage has been increased to Rs 137 to Rs 100 per day. From July 1, 2015, the National Floor Level of Minimum Wage has been raised to Rs 160 per day.Since the respective state governments have been empowered to independently fix minimum wages, disparities between wages in neighboring states are common.

PART 1

Know About Minimum Wages Laws.

1Overtime Compensation: In accordance with the Factories Act 1948, normal working hours are 9 hours per day and 48 hours per week. Working hours for young workers are 4.5 hours per day.

  • The compensation for overtime work is twice the regular rate of ordinary pay. The periods of work must be fixed in such a way that no period should exceed five hours.
  • A worker must get a rest interval of at least 30 minutes after 5 hours of work.
  • Period of work, fixed in accordance with the provisions of Act, should be properly notified and displayed in the factory.
  • Any proposed change should be notified to the Inspector before the change is made.( Source: § 51-63 of Factories Act 1948)

2Night Work Compensation :In accordance with the Factories Act, night shift is a shift which extends beyond midnight.

  • There is no special pay premium for employees working overnight. Source: §57 of Factories Act 1948.
  • Compensatory Holidays / Rest Days
  • If workers lost their weekly rest days these workers must be provided with compensatory rest days within the following 2 months.
  • There is no provision for a compensatory holiday for workers working on a public holiday.Source: §53 of Factories Act, 1948.
  • Weekend / Public Holiday Work Compensation
  • Workers may be required to work on weekly rest days and public holidays. There is no Central level legislation in this respect.

Different State level  Acts (National and Festival Holiday Acts) provide that in such circumstances when workers have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the     rate of 200% of the normal wage rate.


3Minimum Wage in  different states w.e.f  April 1, 2016, to September 30, 2016, is found at Paycheck -State Wise .


4Minimum Wage in Central Sphere w.e.f  April 1, 2016 , o September 30, 2016 is at  Paycheck-Central Sphere.


5Check if you are eligible to complain: Organizations which employ less than 20 persons are exempted from labour laws.In some states like Karnataka IT sector is exempted from labour laws.Apart from mentioned above ,no employee is exempted from minimum wage laws.

  • Calculate your overtime pay, once you understood the minimum wage ,calculate your wage accordingly.
  • For example if your salary is Rs.300 per day and you have overworked for a half day , you would get 2 times your regular salary for the overtime i.e for 5 hours.
  • Normal working hours is 9 hours a week and 48 hour a week
  • The period of overtime should not exceed 5 hours.
  • For every 5 hours of work you are entitled to 30 minutes of break.
  • No extra compensation if you are working in night shifts which extends beyond midnight.
PART 2

How To Report Minimum Wage Law Violation?

1Locate your state labour office, If your employer is not paying the minimum wages or overtime compensation , you can approach your state’s labour office and file a complaint.Some states accept complaints through online too.

Every state has its own labour department. To view Andhra Pradesh’s, click here.


2Present all relevant information you will need the following information to help you file a complaint with the Department of Labor.

  • your name, address, and phone number
  • name of the company you work for
  •  location of the company (this may be different from the location where you work)
  • company’s phone number
  •  name of the manager or owner
  •  type of work you do
  • how and when you are paid (copies of pay stubs would be helpful)

Resources :


Disclaimer : *This information is subject to periodic government policy / process change. Kindly contact the concerned department to cross check for recent updates, if any.

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