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Fixation of Minimum Wages in India

Minimum wages across different states of india in paycheck india. Fixation of minimum wages, minimum wage act, enforcement of minimum wages. Minimum wages in andaman, nicobar, arunachal, assam, bihar, chandigarh, chhattisgarh, dadra, nagar, haveli, daman, diu, delhi, goa, gujarat, haryana, himachal, jammu, kashmir, jharkhand, karnataka, kerala, lakshadweep, madhya pradesh, maharashtra, manipur, meghalaya, mizoram, nagaland, orissa, puducherry, punjab, rajasthan, sikkim, tamil nadu, tripura, uttarakhand, uttarpradesh, west bengal.

Minimum rate of the wages fixed or revised consists of the following:

A basic rate of wages and a special allowance, viz., cost of living allowance ;
A basic rate of wages with or without cost of living allowance and cash value of
concessions for supplies of essential commodities ;
An all inclusive rate, i.e. basic rate, cost of living allowance and cash value of
concessions.

The Government may fix the minimum rates of wages either by the hour, by the day, by the month or by such wage period as may be prescribed.

The minimum wage rate may be fixed at a) time rate, b) piece rate, c) guaranteed time rate and d) overtime rate.

The Act provides that different minimum wage rate may be fixed for a) different scheduled employments, b) different works in the same employment, c) adult, adolescent and children, d) different locations or e) male and female.

Also, such minimum wage may be fixed by a) an hour, b) day, c) month, or d) any other period as may be prescribed by the notified authority.

Norms for fixing minimum wage:

Three consumption units per earner,
Minimum food requirement of 2700 calories per average Indian adult,
Cloth requirement of 72 yards per annum per family,
Rent corresponding to the minimum area provided under the government's Industrial Housing Scheme and
Fuel, lighting and other miscellaneous items of expenditure to constitute 20 per cent of the total minimum wage
Fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total Minimum Wages,
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.

Cost of Living Allowance:

The minimum basic wages fixed are linked to consumer price index as a counter measure against inflation. The cost of living is set twice in a year. The Commissioner of Labour notifies the rate 1^st of April and 1^st of October. The rates are fixed on the basis of the average rise in the State industrial workers consumer price index numbers for half year ending December and June respectively.

Variable Dearness Allowance:

Dearness Allowance is payable to monthly, daily and piece rate earners. Every six months the respective State Governments issues the Cost of Living Index number for each and every scheduled employment.

Fixation of Minimum Wages in India

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