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Proposal for fixing minimum wages uniformly across all sectors in the Country - clarifications - reg. - The Minimum Wages Act, 1948

    “Shanmukha Manram”, RaceCourse, Coimbatore - 641018

Members are hereby informed that in the recent past we could see various press releases informing that the Central Government has proposed to increase the minimum wages uniformly at Rs.18,000/- per month to all Industries across the Country which have creaed a wave among the members. In this connection, when the matter was taken up with various Associations, we were informed that the Central Government has NO SUCH PROPOSAL at present. Further as minimum wages for Contract Labour was increased to Rs.10,000/- per month during May, 2016 and the National Floor Level Wages was increased only in June,2017, the Central Government has NO such proposals as of now.

The Central Government has only introduced the Code on Wages in the Lok Sabha on 10.08.2017, wherein, it had only removed the wage ceiling of Rs.18,000/- per month applicable under the Payment of Wages Act, 1936 so that the Code shall be made applicable to all employees drawing wages even in excess of Rs.18,000/- per month.

We were further informed that, if at all the minimum wages would be hiked, the Central Government will do so only after constituting an Advisory Board for recommending the fixation of minimum wages. Further, the Central Government is much focussing in amending the 44 Labour Laws into four major codes. Hence the members NEED NOT PANIC for any such news regarding the proposal by the Central Government for increasing the minimum wages uniformly at Rs.18,000/- per month for all Industries.

However, SIMA has strongly objected for any such move and is also closely monitoring the matter.

Deputy Secretary General

Circular No.250/2017 Date :- 21.08.2017

The Minimum Wages Act,1948

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