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Minimum Wages-A comparative study Kerala V/s Tamil Nadu Avin Jose[21088] Derin Elsa Idiculla [210 ]
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Page 1: Minimum Wages

Minimum Wages-A comparative study

Kerala V/s Tamil Nadu

Avin Jose[21088] Derin Elsa Idiculla [210 ]

Page 2: Minimum Wages

Minimum Wages India

Legislative protection for workers to receive a minimum wage, can be considered as

the hall mark of any progressive nation. It is one of the fundamental premises of

decent work. In India, the Minimum Wages Act, 1948 provides for fixation and

enforcement of minimum wages in respect of scheduled employments

The Act aims to prevent sweating or exploitation of labour ( According to the NSSO

(2004-05) 61st round, around 395 million workers (86%) out of the total workforce of

around 457 million workers constitute the unorganized/informal sector. In fact 7% of

those employed in organized sector has been identified as informal workers raising

the toll of informal sector to 422 million (92%) through payment of low wages by

ensuring a minimum subsistence wage for workers. The Act also requires the

appropriate government (both at Centre and States) to fix minimum rates of wages in

respect of employments specified in the schedule and also review and revise the

same at intervals not exceeding five years.

Currently, the number of scheduled employments in the Central sphere is 45

whereas in the States sphere the number is 1596 (when all states are counted). With

effect from November 2009, the National Floor Level of Minimum Wage has been

increased to Rs 100 per day from Rs 80 per day (which was in effect since 2007).

Recently with effect from April 1, 2011 the National Floor Level of Minimum Wage

has been raised to Rs 115 per day.

Since the respective state governments have been empowered to independently fix

minimum wages, disparities between wages in neighbouring states are common. In

order to reduce this problem and bring comparability the Central government has set

up 5 regional committees (table below)2 for harmonization of minimum wages.

Table: 5 Regional Committees in India

Current Minimum Wages

Region States/UTs covered

Eastern Region

(6)

West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh and

Andaman and Nicobar Islands.

North Eastern Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,

Page 3: Minimum Wages

Region (8) Nagaland, Tripura and Sikkim.

Southern Region

(6)

Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Puducherry and

Lakshadweep.

Northern Region

(9)

Punjab, Rajasthan, Himachal Pradesh, Jammu and Kashmir,

Haryana, Uttar Pradesh, Uttrakhand, Delhi and

Chandigarh.

Western Region

(6)

Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra and Nagar

Haveli and Daman and Diu.

Number of minimum wage/s, exists in India

There exists more than one minimum wages in India. As per Section 2 of the Act and

Section27, 28 it is mentioned that State as well as Centre has the power to form

Minimum Wage rates

Levels at which minimum wage determined

In India, minimum wages are declared at national, regional, sectoral and

occupational or skill level. As per Section 3 of the Act minimum rates of wages may

be fixed at national & state level. Also, Section 3 (3) of the Act specifies that

minimum rates of wages may be fixed for different skills and occupations

Basis on which minimum wage/s declared

Minimum wages in India is declared on daily, hourly, and monthly basis. As per

section 3 (b) of the Act defines that Minimum Wages are as per the piece rate, hour

rate, and monthly rate as well

In case of daily/weekly/monthly minimum wage, are number of working hours

considered while fixing minimum wages

As per Section3 (14) (b) of the Act there has not been any specific time period. But

may be in accordance to the period fixed under section 4 of the Payment of Wages

Act, 1936 (4 of 1936)

Page 4: Minimum Wages

Who all are involved in setting minimum wages

As per Section 9 of the Act uprating are based on decision jointly made by the

Government, employer and trade union representatives

The components of minimum wages in India

Minimum wages in India has both fixed and variable component. Section 4 mentions

that minimum wages may be inclusive of basic pay and with special allowance on

which it is based.

How frequently is the fixed component of minimum wages updated

Fixed component of minimum wages are updated in more than 2 years. Section 3 of

the Act mentions that the period for revision of fixed component of minimum wages

can be anywhere within 5 years of its fixation.

How frequently is the variable component of minimum wage updated

variable component of minimum wages are updated at irregular time lags. Section 4

of the Act mentions that the special allowance rate should be adjusted at such

intervals and in such manner as the appropriate government may direct

The yardsticks on which minimum wage revisions are based

Section 4 of the Act mentions that Minimum wages are based on basic wages and

cost of living index. The yardsticks on which minimum wage is revised are: (a) Three

consumption units per earner, (b) Minimum food requirement of 2700 calories per

average Indian adult, ( c ) Cloth requirement of 72 yards per annum per family, (d)

Rent corresponding to the minimum area provided under the Government's Industrial

Housing Scheme (e) Fuel, lighting and other miscellaneous items of expenditure to

constitute 20 % of the total Minimum Wages (f) 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.

The national poverty line (In national currency)

The national poverty line is Rs. 356.30 in rural areas and Rs. 538.60 in urban areas,

per capita per month as updated by all-India poverty lines 2004-05

Page 5: Minimum Wages

The percentage of minimum wage relative to the current poverty line

The percentage of minimum wage relative to the current poverty line is 581.65%

(100*26/447*100). National Floor level of minimum wage (Rs 100 per person per

day) has been used to calculate this figure. In order to derive monthly minimum

wage, Minimum Wage rate is multiplied by 26 (number of work days in a month).

National poverty line is calculated by taking an average of the rural and urban

poverty line (Rs 447 per person per month).

To whom/where can individuals complain, if they think they are earning less

than minimum wages.

In case individuals earn less than specified minimum wages, they can complain to

Labour Inspectorate coordinates or Trade Union Coordinates. As per section 19 of

Minimum Wages Act, 1948, government may appoint such person as it thinks fit to

be Inspectors for the purposes of this Act. As per section 20 (2) of Minimum Wages

Act, 1948 it mention that employee can make complain in writing by himself or

through any legal practitioner or any official of a registered trade union authorised to

act on his behalf or any Inspector or any person acting with the permission of the

authority

Probationer’s entitlement to Minimum Wage

By and large, whenever a person joins a new employment, he/she is placed on

probation for a certain period and the employer is entitled to terminate or dispense

the services of probationer during or at the end of such probation period.

Considering this, many-a-times it is enquired whether a probationer is entitled to

minimum wages. Here, the probationer although not being a permanent employee

performs same work as a regular employee and no such distinction has been made

under the Minimum Wages Act, 1948 and thus he is entitled to minimum wages.

Furthermore, a pregnant lady on probation is entitled to maternity benefits as per the

Maternity Benefit Act, 1961. Where such advanced benefits are extended to

probationers then minimum wage is a basic entitlement.

Page 6: Minimum Wages

Minimum Wages

The Constitution of India envisages a just and humane society and accordingly gives

place to the concept of living wage in the chapter on Directive Principles of State

Policy. The Minimum Wages Act, 1948 is based on Article 43 of the Constitution of

India which states that, "The State shall endeavour to secure by suitable legislation

or economic organisation or in any other way to all workers, agricultural, industrial or

otherwise, work, a living wage (emphasis added) conditions of work ensuring a

decent standard of life and full enjoyment of leisure and social and cultural

Opportunities”. The term 'Labour' is included in the 'concurrent list' of the Constitution

which provides for labour legislation both by the central and the state governments.

Labour laws for most workers in the informal sector are enforced by the state

governments, while that for contractors and casual workers in establishments is

regulated by the central government. All labour laws enacted by the central

government directly or indirectly influence wage level and structure of wages in the

informal sector. Table 1 gives a list of legislations that have a direct influence on

wages in the informal sector.

Table 1: Labour legislations influencing wages in the informal sector in India

Labour legislation Type of intervention

The Minimum Wages Act, 1948

To provide minimum compensation for work. Workers in scheduled employment to be paid minimum wage.

The Trade Unions Act, 1926

To enable workers of a number of small units to form unions, who can bargain wages and other condition of work.

The Industrial Disputes Act, 1947

To enable unions to raise industrial disputes on wages and the conciliation machinery to intervene.

The Equal Remunerations Act, 1976

Assure equal wage to women for same or similar work.

The Payment of Wages Act, 1936

To regulate the manner of payment of wages and their realisation in case of non-payment.

The Contract Labours (Regulation and Abolition) Act, 1970

The contractor is required to pay wages and in case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same.

Page 7: Minimum Wages

Minimum wage legislation is the main labour legislation for the workers in

unorganized sector. In India, the policy on wage determination had been to fix

minimum wages in sweating employments and to promote fair wage agreements in

the more organised industries. Wages in the organised sector are determined

through negotiations and settlements between employer and employees. On the

other hand, in unorganised sector, where labour is vulnerable to exploitation due to

illiteracy and does not have effective bargaining power, the intervention of the

government becomes necessary.

The Minimum Wage Act, 1948 provides for fixation and enforcement of minimum

wages in respect of schedule employments to prevent sweating or exploitation of

labour through payment of low wages. The objective of the Act is to ensure a

minimum subsistence wage for workers. The Act requires the appropriate

government to fix minimum rates of wages in respect of employment specified in the

schedule and review and revise the minimum rates of wages at intervals not

exceeding five years. Once a minimum wage is fixed according to the provisions of

the Act, it is not open to the employer to plead his inability to pay the said wages to

his employees.

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.

In order to protect the minimum wages against inflation, the concept of linking it to

the rise in the consumer price index was recommended at the labour

ministers' conference in 1988. Since then, the concept of Variable Dearness

Allowance (VDA)5 linked to consumer price index has been introduced. The VDA is

revised twice a year in April and October. While the Centre has already made

provision in respect of all scheduled employments in the central sphere, 22 states

and Union Territories have adopted VDA as a component of minimum wage.

Page 8: Minimum Wages

Norms for fixing minimum wages

The fixation of minimum wage in India, depends upon various factors like socio-

economic and agro-climatic conditions, prices of essential commodities, paying

capacity and the local factors influencing the wage rate. It is for this reason that the

minimum wages vary across the country.

In the absence of any criteria stipulated for fixing the minimum wage in the Minimum

Wages Act, the Indian Labour Conference in 1957 had said that the following norms

should be taken into account while fixing the minimum wage. The norms for fixing

minimum wage rate are (a) three consumption units per earner, (b) minimum food

requirement of 2700 calories per average Indian adult, (c) cloth requirement of 72

yards per annum per family, (d) rent corresponding to the minimum area provided

under the government's Industrial Housing Scheme and (e) fuel, lighting and other

miscellaneous items of expenditure to constitute 20 per cent of the total minimum

wage (f) Fuel, lighting and other miscellaneous items of expenditure to constitute

20% of the total Minimum Wages, (g) 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.

In September 2007, the national minimum floor level wage was increased to Rs 80

per day for all scheduled employments from Rs 66 in 2004 to Rs. 45 in 1999, Rs. 40

in 1998 and Rs. 35 in 1996.

Issues in Wage Policy

Minimum wages are expected to cover the essential current costs of

accommodation, food and clothing of a small family. The Minimum Wage Act, while

being very progressive has led to specific problems. Doubts have been raised on the

existence of a clear and coherent wage policy in India particularly in unorganized

sector. This is mainly due to its poor norms of fixation, enforcement, implementation

and coverage in various parts of the country. Some of the issues and concerns faced

in India regarding minimum wages are summarized below:

Page 9: Minimum Wages

a. Norms for fixing minim wages

The Act does not set out a minimum wage in rupee terms, but just stipulates that the

wage be a living wage8 which is to be decided by labour department in each state.

Certain norms have been laid out including that of calorie requirements, yards of

cloth per family and so on. The Act also stipulates that minimum wage rates are to

be revised keeping in mind inflation. Additionally, the guidelines laid down for the

minimum wage by the 15th Indian Labour Conference (ILC) and the Supreme Court

suggest that a minimum wage for 8 hours of work should be high enough to cover all

the basic needs of the worker, his/her spouse and two children. However, in many

states while fixing the minimum wages, they are not linked to the payment of

dearness allowance. As a result, real wages of workers keep eroding due to inflation,

pushing them below the poverty line.

Another inadequacy is that though the MWA requires wages to be revised every five

years, this rarely happens. The MWA also has a clause which states that if wages

are not revised, the existing wages should continue. Such an arrangement has only

led to greater laziness and unaccountability on the part of state labour departments,

leaving some workers to live below poverty line. Further to overcome these

inadequacies, the National Commission on Rural Labour in 1990, recommended that

the MWA should be amended to compel timely revision of wages and it should be

linked to VDA. It should also ensure enhancement of wages every six months on the

basis of the Consumer Price Index. How far the amendment has been implemented

in states is unknown. (For example, states like Rajasthan, Orissa etc. do not have

provision for VDA).

Different wages are fixed for the same work in different sectors. For instance, a

watchman in the shop or commercial establishment may be fixed higher or lower

wages than a watchman in the plastic industry or in a construction or maintenance of

roads or building operations, though a watchman’s job will be the same wherever he

may work. To overcome these deficiencies, several states like Himachal Pradesh,

West Bengal, Andhra Pradesh, etc., have rationalised all the different occupation

categories into just four categories - unskilled, semi-skilled, skilled and highly-skilled.

As per this system, only one notification is applicable to all industries, rather than the

time-consuming system of notifying wages individually for various industries. Though

Page 10: Minimum Wages

the system gives a clear and detailed information of minimum wages, it has not been

adopted by all states, including the Indian Labour Ministry website, which gives the

minimum rate of wage (that is wages for unskilled workers) for each occupation.

b. Coverage

In order to have minimum wage fixed, the employment or industrial activity has to be

included in the schedule of Employments. Currently the number of scheduled

employments in the Central government is 45 whereas in the state sphere the

number is 1232. he criterion for inclusion in the list of scheduled employment is that

there should be at least 1000 workers engaged in that activity in the state. Thus,

many activities are excluded from the list. This criterion for inclusion has left a very

large number of workers in the unorganised sector outside the purview of the

Minimum Wage Act.

c. Implementation

The main problem of minimum wage legislation in India is its poor implementation.

The Act empowers the appropriate government (Central, State or Local) to fix a

minimum wage for workers in unorganised sectors. However, often exemptions from

the payment of minimum wages have been granted to industries. In addition,

minimum wage levels have been revised only at long intervals (where the actual

prescribed limit is within 5 years). Such a failure in implementation of MWA is not

only due to loopholes in policy design but is also an outcome of lapses in the

administration.

Poor implementation of MWA does not affect organised workers as much as it does

to workers in unorganized sectors. Unorganised workers are employed with millions

of employers (generally small trade, enterprise, sole proprietor or household) who

are scattered and hence becomes difficult to cover them under law. This diversity in

locations and nature of work has left them vulnerable to exploitation in the absence

of a broad legal standard. Also, many workers for the fear of losing their jobs do not

report about payments lower than the minimum wage rate. At times, these workers

are even forced by their employers to certify payments below minimum wages.

d. Enforcement

Page 11: Minimum Wages

Poor enforcement of the Act is another issue prevalent in most of the states in India.

The issue arises mainly due to lack of awareness amongst the workers about

minimum wage provisions and their entitlement under the labour laws. Surveys have

shown that almost 80 per cent of the workers in unorganized sector earn less than

20 rupees a day or less than half the government-stipulated rural minimum wage of

49 rupees a day and urban wage of 67 rupees9. This is particularly true in remote

areas and in areas where workers are not unionized or otherwise organised. As a

result their wages have long since failed to keep pace with rising costs and continue

to diminish in real value over time.

Comparative study of Minimum Wages between Kerala and Tamil

Nadu

Minimum Wages in Kerala Kerala: Revised Minimum Wages updated on March 5, 2011

Sr.

No. Scheduled Employment Category of Workers

Minimum

Wages V.D.A

Total

Wages

Notification

Date

1 Agricultural Operation for Light Work 150 No

Provision

150 10th Aug

2009 for Hard Work 200 200

2 Ayurvedic and Allopathic

Medicines

Unskilled 96.23 49.52 145.75

Semi-skilled 100.54 49.52 150.06

Skilled 102.69 49.52 152.21

Highly skilled 107 49.52 156.52

3 Arecanut Tree Climbing

Piece rate wages exists (for

Plucking Per Bunch of Nuts) 3 0 3

10th Aug

2009 Piece rate wages exists (for

Spraying Per Tree) 1.75 0 1.75

4 Beedi and Cigar Industry

Grade (1) 93.65 47.93 141.58

Grade (2) 85.19 47.93 133.12

Grade (2)(A) 87.3 47.93 135.23

Grade (3) 80.96 47.93 128.89

5 Block Rubber Factories

Unskilled 135 21.32 156.32 28th Dec

2009 Semi-skilled 150 21.32 171.32

Skilled 159 21.32 180.32

6 Brick Manufacturies

Unskilled 85.2 114.76 199.96

Semi-skilled 87.6 114.76 202.36

Skilled 90 114.76 204.76

7 Cashew Industry Lowest Rate 180 18.36 198.36 1st Feb 2011

Page 12: Minimum Wages

Highest Rate 250 18.36 268.36

8 Cashew Plantation

Clear felling, 150 0 150

10th Aug

2009

Collectors of rawnut

(a) Collecting nut from trees (Per

Kg) 5.6 0 5.6

(b) Collecting nuts from the

ground (Per Kg) 2.8 0 2.8

9 Coconut Tree Climbing Piece rate wages exists (Per

Tree) 4 0 4

10th Aug

2009

10

Construction,

maintenance of

roads,building operations

Unskilled 112.46 67.39 179.85

Semi-skilled 142.62 67.39 210.01

Skilled 164.18 67.39 231.57

11 Coir Manufacturing Piece rate wages exists

12 Cinema Theatres

Unskilled 97.1 41.17 138.27

Semi-skilled 101.1 41.17 142.27

Skilled 106.1 41.17 147.27

Highly skilled 111.1 41.17 152.27

13 Dairy Farming

Category D 184.69 21.32 206.01

10th Aug

2009

Category C 189.42 21.32 210.74

Category B 194.77 21.32 216.09

Category A 214.31 21.32 235.63

Milking (twice daily) 210 21.32 231.32

Milking (twice along with other

works in Dairy) 250 21.32 271.32

Seed Bull attending 250 21.32 271.32

OtherGeneral Works 195 21.32 216.32

14 Drying of Coconuts for

making Copra 40.65 104.47 145.12

15

Fish Peeling and Fish

Canning, Freezing and

Exporting of Sea Foods.

Processing workers 138 21.32 159.32

15th Mar

2010

Icemen 139 21.32 160.32

Loading and Unloading from

trawlers 140 21.32 161.32

16 Forests

Unskilled 146 59.39 205.39

Semi-skilled 151 59.39 210.39

Skilled 167 59.39 226.39

Highly skilled 181 59.39 240.39

17 Handloom Industry

Unskilled 118 21.32 139.32

11th Dec

2009

Semi-skilled 124 21.32 145.32

Skilled 131 21.32 152.32

Highly skilled 137 21.32 158.32

18 Handling and Care of

Elephants

Lowest Rate 146.73 21.32 168.05 9th June

2009 Highest Rate 153.86 21.32 175.18

Page 13: Minimum Wages

19 Hill Product Industry Lowest Rate 128 49.53 177.53

Highest Rate 130 49.53 179.53

20 Hostels

Group I 127.35 21.32 148.67

15th Dec

2009

Group II 124.88 21.32 146.2

Group III 122.5 21.32 143.82

Group IV 119.27 21.32 140.59

Group V 117.65 21.32 138.97

21 Hosiery Manufacturing

Unskilled 65 73.71 138.71

Semi-skilled 68 73.71 141.71

Skilled 106.62 73.71 180.33

Highly skilled 164.3 73.71 238.01

22 Ice Factory Unskilled 72.96 68.04 141

Highly skilled 75.31 68.04 143.35

23 Light Motor Vehicles Lowest Rate 148 75.27 223.27

Highest Rate 174 75.27 249.27

24 Liquor Trading &

Vending

Unskilled 90.69 80.18 170.87

Semi-skilled 94.85 80.18 175.03

Skilled 99 80.18 179.18

Highly skilled 103.15 80.18 183.33

25 L.P.Gas (Cooking Gas)

Agencies

Manager 132.21 22.10 154.31

27th May

2009

Assistant Manager 127.40 22.10 149.50

Accountant/ Cashier/ Clerk/

Typist/ Stenographer/ Computer

operator/ Mechanic/ Driver

(Heavy duty)

122.60 22.10 144.70

Driver (Light duty)/ Delivery

Boy/ Godown Keeper 121.15 22.10 143.25

Attender/ Watchman/ peon/

Godown Assistant/ Sweeper 119.23 51.34 183.55

26 Match Industry Unskilled 59.31 54.76 114.07

Highly skilled 66.7 54.76 121.46

27 Minor Ports Lowest Rate 75 66.01 141.01

Highest Rate 139 66.01 205.01

28 Minor Engineering

Unskilled 138 21.32 159.32

16th Dec

2009

Semi-skilledGr.2 145 21.32 166.32

Semi-skilledGr.1 150 21.32 171.32

Skilled Gr.3 154 21.32 175.32

Skilled Gr.2 158 21.32 179.32

Skilled Gr.1 164 21.32 185.32

Highly skilled 166 21.32 187.32

Supervisory 192.31 21.32 213.63

29 Nurseries Unskilled 155 21.32 176.32 10th Aug

Page 14: Minimum Wages

Skilled 155 55 210 2009

Clerk, Typist, 125 21.32 146.32

Manager/Supervisor 138.46 21.32 159.78

30 Oil Mill

Unskilled 123 49.53 172.53

Semi-skilled 126.8 49.53 176.33

Skilled 127.85 49.53 177.38

31 Oil Palm Plantation

General Category 108 55.76 163.76

Factory 112 55.76 167.76

Skilled 137 55.76 192.76

32

Plantation i.e. any estate

Which is maintained for

the purpose of growing

Rubber, Coffee & Tea.

Rubber Plantation

12th June

2009

Field Workers 87.01 75.01 162.02

Factory Workers 90.33 75.01 165.34

Creche Attendants 98.19 86.55 184.74

Special Category 100.69 86.55 187.24

Supervisors 102.19 86.55 188.74

Coffee Plantation

Field Workers 49.02 75.01 124.03

Factory Workers 51.42 75.01 126.43

Creche Attendants 55.92 86.55 142.47

Special Category 57.46 86.55 144.01

Supervisors 58.38 86.55 144.93

Tea Plantation

Field Workers 49.02 75.01 124.03

Creche Attendants 55.92 86.55 142.47

Special Category 57.46 86.55 144.01

Supervisors 58.38 86.55 144.93

33 Plywood Industry

Unskilled 111 82.52 193.52

Semi-skilled 113 82.52 195.52

Skilled 115 82.52 197.52

Highly skilled 122 82.52 204.52

34

Power loom Industry

excluding the workers

employed in power loom

section of Cotton Textile

Mills in the State

Unskilled 71.8 59.39 131.19

Semi-skilled 73.38 59.39 132.77

Skilled 78.16 59.39 137.55

35 Pharmacists in Medical

Shop Highly skilled 86.54 86.99 173.53

36 Printing Press Unskilled 79.2 50.59 129.79

Skilled 80.85 50.59 131.44

37

Private Hospitals

Dispensaries Pharmacies

Clinical Laboratories,

Scanning Center, X - Ray

Lowest Rate 30.19 121.33 151.52

16th Dec

2009 Highest Rate 66.34 121.33 187.67

Page 15: Minimum Wages

Unit and other allied

Institution

38 Rice Mill, Flour Mill &

Dhal Mill

Unskilled 181 22.1 203.1 24th Feb

2010 Semi-skilled 174 22.1 196.1

Skilled 167 22.1 189.1

39

River Sand Collection

and its loading and

unloading

Loading & Unloading 250 51.39 301.39

North Zone 250 51.39 301.39

South Zone 300 51.39 351.39

40 Rubber Crepe Mills

Category 1 139 21.32 160.32

9th Oct 2009 Category 2 134 21.32 155.32

Category 3 130 21.32 151.32

41 Rubber Products Industry

Unskilled 85 67.39 152.39

Semi-skilled 92.5 67.39 159.89

Skilled 95 67.39 162.39

Highly skilled 96.25 67.39 163.64

42

Shops & Establishments

(including Hotels and

Restaurants)

Grade E 143.35 24.9 168.25

23rd July

2009

Grade D 146.15 24.9 171.05

Grade C 149.12 24.9 174.02

Grade B 152.08 24.9 176.98

Grade A 157.85 24.9 182.75

Special Grade 161.69 24.9 186.59

43 Stone Breaking and

Stone Crushing

Unskilled 112.46 67.39 179.85

Semi-skilled 142.62 67.39 210.01

Skilled 164.18 67.39 231.57

44 Tile Industry

Unskilled 120.2 31.72 151.92

Semi-skilled 120.2 31.72 151.92

Skilled 121.8 31.72 153.52

Highly skilled 122.3 31.72 154.02

45 Timber Industry and

Plywood Industry

Unskilled 111 49.36 160.36

Semi-skilled 113 49.36 162.36

Skilled 115 49.36 164.36

Highly skilled 122 49.36 171.36

46 Toddy Tapping

Grade I 121.73 2.00 123.73

30th Mar

2010

Grade II 116.85 2.00 118.85

Grade III 111.92 2.00 113.92

Grade IV 107.04 2.00 109.04

47

Units engaged in

manufacturing & sale of

umbrellas

Piece rate wages exists

48 Sales Promition of

Pharmaceuticals Sales Promotion Employees 273 21.32 294.32

27th May

2009

49 Manufacture and sale of Piece rate wages exists 30th Jan

Page 16: Minimum Wages

Umbrellas 2010

50

Gold and Silver

Ornament s

manufacturing

Unskilled 175 21.32 196.32

7th Oct 2009 Skilled 225 21.32 246.32

Highly skilled 250 21.32 271.32

51 Sweeping and Cleaning

Working in the

Municipalities/corporation areas 150 21.32 171.32

19th April

2010 Other areas 135 21.32 156.32

52 Domestic Workers

Household Workers 130 21.32 151.32

Care Takers(Childrens/ Elders) 134 0 134

9th Mar

2010

Cook 142 0 142

Other household Workers 130 0 130

Maid/ Driver/ Gardener/ Home

Nurse(Part Time) 146 0 146

Home Nurse (Full time) 150 0 150

Security/ Watch man/ Garden

Workers 142 0 142

Minimum wages in Tamil Nadu Tamil Nadu: Minimum Wages w.e.f October 1, 2010

Sr.

No. Scheduled Employment

Basic Minimum

Wages V.D.A.

Total Minimum

Wages

1 Agarbathi Industry 69.73 38.57 108.30

2

Agriculture and works ancillary to Agriculture

a) Men Workers for 6 hr 100.00 0.00 100.00

b) Women Workers for 5 hr 85.00 0.00 85.00

3 Aerated Water Manufactory 70.00 44.46 114.46

4 Appalam Manufactory 93.42 51.77 145.19

5 Automobile Workshop 109.15 60.42 169.57

6 Auto Rickshaw and Taxi 138.50 76.69 215.19

7 Bakeries and Biscuits Manufactory 78.00 42.24 120.24

8 Bricks and Tiles Manufactory 74.00 39.60 113.60

9 Carpentry and Black Smith 127.00 78.18 205.18

10 Cashew Industry 132.50 15.20 147.70

11 Chemical and Fertilizers Industry 87.42 48.23 135.65

12 Cinema Industry 128.73 71.07 199.80

13

Coaching Academics that is to say tutorial

colleges, Technical Institutes, Primary Schools,

run on commercial lines without Govt. grant

other

than those run by Govt. and local bodies as the

case may be.

51.92 36.23 88.15

Page 17: Minimum Wages

14 Coconut Peeling Industry 79.00 42.24 121.24

15 Coir Manufactory 90.00 53.00 143.00

16 Coffee Curing Works 73.00 39.60 112.60

17

Construction or Maintenance of Road and in

Building

Operations

117.00 63.36 180.36

18 Cotton Ginning , Pressing and Cotton Waste

Industry 91.00 51.76 142.76

19 Distribution of Liquid Petroleum Gas Cylinders 82.69 45.69 128.38

20 Electronics Industry 91.00 50.27 141.27

21 Fire Works Manufactory 31.50 61.04 92.54

22 Food Processing Industry 86.50 48.03 134.53

23 Footwear Making Industries 72.23 49.68 121.91

24 Employment in Forestry 39.00 72.15 111.15

25 General Engineering & Fabrication Industry 104.00 60.92 164.92

26 Gunny Industry 130.00 71.28 201.28

27 Gold and Silver Articles Manufactory 131.00 71.28 202.28

28 Granite Industry 130.26 72.07 202.33

29 Handloom Silk Weaving Industry Piece Rate

30 Handloom Weaving Industry Piece Rate

31 Hotel and Restaurants 98.85 72.60 171.45

32 Hospitals and Nursing Homes 107.19 59.38 166.57

33 Laundries and Washing Cloths (including

Woolen) 140.50 76.56 217.06

34 Leather Goods Manufactory 72.23 49.68 121.91

35

Loading and Unloading Operations in markets,

shandies

(fairs and market place) and other like places.

85.00 44.88 129.88

36 Match Manufacturing 68.50 36.96 105.46

37 Mat Weaving and Basket Making 75.00 39.60 114.60

38 Medical & Sales representative 129.73 72.09 201.82

39 Motion Picture Industry 103.07 56.84 159.91

40 Neera Tapping 154.00 84.48 238.48

41 Any oil Mill 83.00 47.72 130.72

42

a) Paper and other incidental processes

connected with

machine made paper Industry

87.27 48.23 135.50

b) Paper and other incidental Processes

connected with

Hand Made Paper

83.42 46.20 129.62

43

Plantation

a) Tea 78.00 50.25 128.25

b) Coffee 77.00 50.25 127.25

c) Rubber 81.50 50.25 131.75

Page 18: Minimum Wages

44 Power Loom Industry 29.00 52.91 81.91

45 Polythene Processing Foam Item and Plastic

Manufactory 47.12 87.88 135.00

46 Printing Presses 72.81 40.12 112.93

47 Public Motor Transport 137.30 76.15 213.45

48 Rice Mill, Flour Mills and Dhall mills 88.50 47.52 136.02

49 Sago Industry 94.50 53.61 148.11

50 Salt Pans 89.00 47.52 136.52

51 Sea Food processing Industry 79.92 44.38 124.30

52 Security Guards 90.35 49.77 140.12

53 Sericulture Industry 95.00 52.80 147.80

54 Shops and Commercial Establishments 78.88 43.65 122.53

55 Silk Twisting Industry 97.00 52.80 149.80

56 Soap Manufactory 122.00 71.08 193.08

57 Synthetic Gem Cutting Industry Piece Rate

58 Tailoring Industry 70.19 38.58 108.77

59 Textile mills (Apprentice) 110.00 60.72 170.72

60 Timber Industry 132.50 71.28 203.78

61 Tin Container Manufactory 91.00 50.26 141.26

62

Tobacco Manufactory

a) Beedi making (other than beedi rolling) 96.15 50.77 146.92

b) Beedi Rolling (per 1000 beedis) 37.20 48.62 85.82

c) Scented and chewing Tobacco 67.50 36.96 104.46

d) Snuff Industry 78.00 42.24 120.24

63 Guaranteed Time Rates of Wages Tobacco

(including Beedi making) Manufactory (Guaranteed Time Rates)

64 Vessels Utensils Manufactory 72.00 39.60 111.60

65 Tanneries and Leather Goods Manufactory 57.00 47.83 104.83