The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labor in other industries. Central government is the appropriate agency to fix the minimum wages of any scheduled employment carried on by or under its authority or in railway administration or in relation to mines, oilfields or major ports or any corporation established under the central act. State governments are appropriate government in relation to other scheduled employment. Every state has its own legislature to make special laws for the state and the laws which are made by a state legislature have effect in that particular state only.
Section 2(s) of The Payment of Wages Act, 1936, defines wages as follows:
“wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Government of Karnataka has updated the minimum wages in scheduled employments and that is having effect from 1st April to 31st march 2022. Scheduled employment'' means an employment specified in SCHEDULE, or any process or branch of work forming part of such employment. For fixing the minimum wages of employees, the government has categorized the workers as follows:
1. Highly skilled workers
2. Skilled workers
3. Semi-skilled workers
4. Un-skilled workers
5. Office staff & Drivers
For fixing the minimum wages of employees, the government has categorized the place of employment into four Zones,i.e, Zone-1,Zone-2,Zone-3 and Zone 4. Zone 1 areas are those areas which are notified under Bruhat Bangalore Mahanagara Palike(BBMP),which is the administrative body responsible for civic amenities and some infrastructural assets of the Greater Bangalore metropolitan area. Zone 2 areas include all notified areas under Bruhat Bangalore Mahanagara Palike(BBMP) other than areas mentioned under Zone 1. Zone 3 include all the district places other than areas notified in Zone 1 & Zone 2 while Zone 4 includes all other areas which are not mentioned in Zone 1, Zone 2 and Zone 3.
High skilled workers include pharmacist & chemist technical supervisor and other high skilled workers whose minimum daily wages in Zone 1 area is fixed at 659.28 per day or 17,146.60 per month and it includes basic salary of 593.21 and VDA of 66.28. VDA means Variable Dearness Allowance, defines the new amount which is earned after the increase or decrease in the consumer price index (CPI). In addition to basic wages, all category of employees in the state shall be paid VDA @4 paisa per point over and above 6537 points. High skilled workers in Zone 2 area will receive minimum 631.24 rupees per day or 16,412.15 per month while in Zone 3 area, employees will get minimum wage of 604.34 rupees per day or 15,712.68 per month. High skilled workers I Zone 4 area will be given with 578.72 rupees per day or 15,046.51 per month which includes the basic pay and the VDA.
Skilled workers include salesmen, compounder photo-artist, photographer, watch mechanic, Radio mechanic, TV mechanic, skilled labor in lift fixing establishment, Technical/mechanical instrument shop, Carpenter and polisher in furniture shop, Refractionarian man, Hair dresser in hair dressing saloon, Air condition plant operator, Umberella/suitcase maker etc..Their minimum wages are set as 605.56 rupees per day or 15,744.47 per month including the Basic pay and the VDA in Zone 1 areas. Skilled workers in Zone 2 areas receives minimum wage of 15,076.79 per month or 579.88 per day while in Zone 3 area they receive minimum wage of 14,440.91 per month or 555.42 per day. Employees will get minimum wage of 13,835.30 per month in Zone 4 areas whereas their daily wages are fixed at 532.13 rupees.
Semi skilled workers includes Bill collector, Bill clerk, Godown keeper, Booking clerk, Assistant sales man, Shop assistant, Packer, Gas suppliers, Stove repairer, Painter, Fruit juice makers in shops etc..Their minimum wages in Zone 1 area is fixed at 14,469.81 per month while daily wages is fixed at 1723.20 rupees. In Zone 2 areas, they will get 13,862.83 per month or 533.19 per day. Employees will be given with minimum wage of 13,284.75 per month in Zone 3 areas where the daily wage is fixed at 510.96 rupees while in Zone 4 area their monthly minimum wage is 12,734.20 rupees and minimum daily wage is set to 489.78 rupees.
Unskilled workers include, Messenger, Weighing Man, Bicycle Fitter/Repairer, Workers Engaged In Drying, Storing, Washing, Ironing (In Laundry), Measuring, Loading And Unloading In Warehousing Godowns, Storerooms, Workers Engaged In Grinding Establishment Services, Workers Engaged In Grinding Establishment Services, Gunny Stitcher etc. Their minimum wages in Zone 1 areas are fixed at 13,311.03 per month or 511.97 per day. The minimum wages in Zone 2 areas are 12,759.23 per month or 490.74 per day while in Zone 3 areas they will get 12,233.70 per month or 470.53 per day. In Zone 4 areas the employees will get 11,733.20 per month or 451.28 per day.
Manager/ Personal Officer, Marketing Manager, Office Supervisor Or Any Other Equivalent Position will get 18,146.20 per month in Zone 1 areas,17,411.20 in Zone 2 areas, 16,712.20 per month in Zone 3 areas and in Zone 4 areas, they get minimum monthly wage of 16,046.20 rupees. Those who are employed as Senior Clerk, Cashier, Judgment Writer, Stenographer, Any Other Equivalent Position will get 15,744 monthly salary in Zone 1 areas,15,076.79 rupees in Zone 2 areas,14,440.91 in Zone 3 areas and 13,835.30 in Zone 4 areas. Peon, Watchman, Lift operator, Office boy, Attender, Helper, Dalayat, Mazdoor, Sweeper etc.. will get minimum wage of 13,311.03 per month if he is employed in Zone 1 areas,12,759.23 in Zone 2 areas,12,333.70 in Zone 3 areas and 11,733.20 rupees if he is employed in any Zone 4 areas.
Fixing minimum wages for every work is very important for the development of every country. It improves the living standards of the people and their dependents. They have right to get adequate and reasonable income from the work they are doing and that should meet their basic needs. No one should work for free for anyone and every work has its own importance. It is very important to restrain the employers from giving fewer wages for the work of their employees which makes their life difficult. Minimum wages are accepted globally to be a vital means to both combating poverty and, equally crucially, ensuring the vibrancy of any economy. By enacting an act which empowers the government to fix minimum wages for all kinds of employments, results the employees been paid equal for the work they are doing without any discrimination. The Finance Ministry’s Economic Survey - released in July - featured a chapter called ‘Redesigning a Minimum Wage System in India for Inclusive Growth’. This emphasized how important establishing an effective minimum wage system was. According to the survey, the impact of a statutory national minimum wage would include help in lifting wage levels and reducing wage inequality, thus furthering inclusive growth.