GOVERNMENT OF KARNATAKA
No. KE 20 LMW 2017
Government of Karnataka
Legislature Vikas Soudha Bengaluru,
Date : 30-12-2017
NOTIFICATION
Government has decided to fix the Minimum Wages for any category of employees who come under the purview of ‘Shops and Commercial Establishments’ in the State of Karnataka and the Minimum Wages Table are released as below.
This Notification was released under the provisions of Minimum Wages Act, 1948 (Central Act No. XI) Rule 3(1)(b) and 5(1)(b) and was published under No. KE 20 LMW 2017, Bengaluru dated 28- 04-2017 in Karnataka Rajya Patra Part 4A from Page No. 4476 to 4480 dated 22/06/2017 wherein it had sought objections/suggestions from affected person from the Employer / Employee / Association Orgnisation, within TWO MONTHS from the date of this Draft Notification. During the said period, the State Government has received several objections/suggestions from all the concerned for consideration.
State Government in its Letter No. KE 02 LMG 2017 dated 08-11-2017 had called on for meeting of members of Karnataka Minimum Wages Committee to discuss the Draft Notification and as accordingly as per the rules on 06-12-2017 the Karnataka Minimum Wages Committee discussed on the Draft Notification and the objections/suggestions filed and after detailed discussions the Committee decided to forward its recommendations to the Government to release the final notification. Hence, based on the recommendations by the Karnataka Minimum Wages Committee, the State of Karnataka under rights provided to the State Government under the provisions of Minimum Wages Act, 1948 (Central Act No. XI) Rule 3(1)(b) and 5(1)(b) hereby terminates all prior notifications and for any category of employees who come under the purview of the Establishment of ‘Shops and Commercial Establishments’ from the date of applicability of this notification the below Minimum Wages Rates will be applicable. The below stated Table will be applicable under the Rule 12 of the Minimum Wages Act, 1948 and all Employers covered under the Act shall ensure the implementation.
SHOPS AND COMMERCIAL
ESTABLISHMENTS w.e.f. 30-Dec-2017
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Notification dated
30-Dec-2017
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| CATEGORY | Zone - 1 | Zone - 2 | Zone- 3 | ||||||||||||
| Basic | DA | Daily | Monthly | Prior | Basic | DA | Daily | Monthly | Prior | Basic | DA | Daily | Monthly | Prior | |
| HIGHLY SKILLED | 15423.4 | 367.2 | 607.33 | 15790.6 | 9310.8 | 14688.95 | 367.2 | 579.08 | 15056.15 | 8998.8 | 13989.48 | 367.2 | 552.18 | 14356.68 | 8686.8 |
| SKILLED | 14021.27 | 367.2 | 553.4 | 14388.47 | 8920.8 | 13353.59 | 367.2 | 527.72 | 13720.79 | 8608.8 | 12717.71 | 367.2 | 503.27 | 13084.91 | 8322.8 |
| SEMI SKILLED | 12746.61 | 367.2 | 504.38 | 13113.81 | 8660.8 | 12139.63 | 367.2 | 481.03 | 12506.83 | 8374.8 | 11561.55 | 367.2 | 458.8 | 11928.75 | 8088.8 |
| UNSKILLED | 11587.83 | 367.2 | 459.81 | 11955.03 | 8010.8 | 11036.03 | 367.2 | 438.59 | 11403.23 | 7750.8 | 10510.5 | 367.2 | 418.37 | 10877.7 | 7516.8 |
| DESIGNATION GR.1 | 16423 | 367.2 | 645.78 | 16790.2 | 7880.8 | 15688 | 367.2 | 617.51 | 16055.2 | 7646.8 | 14989 | 367.2 | 590.62 | 15356.2 | 7412.8 |
| DESIGNATION GR.2 | 15423.4 | 367.2 | 607.33 | 15790.6 | 7750.8 | 14688.95 | 367.2 | 579.08 | 15056.15 | 7516.8 | 13989.48 | 367.2 | 552.18 | 14356.68 | 7282.8 |
| DESIGNATION GR.3 | 14021.27 | 367.2 | 553.4 | 14388.47 | 0 | 13353.59 | 367.2 | 527.72 | 13720.79 | 0 | 12717.71 | 367.2 | 503.27 | 13084.91 | 0 |
| DESIGNATION GR.4 | 12746.61 | 367.2 | 504.38 | 13113.81 | 9414.8 | 12139.63 | 367.2 | 481.03 | 12506.83 | 9076.8 | 11561.55 | 367.2 | 458.8 | 11928.75 | 8764.8 |
| DESIGNATION GR.5 | 11587.83 | 367.2 | 459.81 | 11955.03 | 9180.8 | 11036.03 | 367.2 | 438.59 | 11403.23 | 8868.8 | 10510.5 | 367.2 | 418.37 | 10877.7 | 8556.8 |
| DESIGNATION GR.6 | 14021.27 | 367.2 | 553.4 | 14388.47 | 8920.8 | 13353.59 | 367.2 | 527.72 | 13720.79 | 8608.8 | 12717.71 | 367.2 | 503.27 | 13084.91 | 8322.8 |
| DESIGNATION GR.7 | 12746.61 | 367.2 | 504.38 | 13113.81 | 8790.8 | 12139.63 | 367.2 | 481.03 | 12506.83 | 8504.8 | 11561.55 | 367.2 | 458.8 | 11928.75 | 8218.8 |
| DESIGNATION GR.8 | 11587.83 | 367.2 | 459.81 | 11955.03 | 8660.8 | 11036.03 | 367.2 | 438.59 | 11403.23 | 8374.8 | 10510.5 | 367.2 | 418.37 | 10877.7 | 8088.8 |
Government has established the above Minimum Wages based on the below calculation
and all Employers are directed to implement.
1. Dearness Allowance Calculation and Payment :
Dearness Allowance shall be calculated once in a year. It shall be calculated from 1st
day of April for every year on the basis of last calendar year average of 12 months
and in case of increase/decrease shall be calculated on the basis of annual Average
on consumer Price list.
Hence the first calculation of consumer rate list shall be come
into effect on 1st April of 2017, on the basis of (Jan-2016 to Dec-2016). Consumer
Price Index is 6537 for all categories of employees and shall be calculated and
payable at 0.04 paise.
METHOD OF CALCULATION OF DA
A. Personnel receiving Monthly Wages
Increase in CPI Points for the Year X Rate of DA Amount X 30 days
In case of Daily Wage earners the monthly rates shall be calculated by dividing
26 days and including 4 holiday wages. Divided earnings can be rounded off to
the nearest rupee.
B. Personnel receiving Daily Wages
Increase in CPI Points for the Year X Rate of DA Amount X 30 days / 26
2. Service Weightage Allowance :
The day this notification comes to effect, any
employee who works in an Establishment or under the same Employer continuously
for (10) years, for having completed every year of service (1) percent on the overall
monthly wages to be paid as Service Weightage Allowance and will be eligible for a
maximum of 10 percent. However, the day this notification comes to effect, any
employee who works for more than (20) years, such employees will be eligible for
one time service weightage allowance of maximum of 10 percent. Service
Weightage Allowance to be calculated and paid excluding the DA as mentioned in
Sl. No. 1.
Explanation : “Continuous Service to be considered
employee should have worked continuously for
Establishment.”
3. Equal Wages to Female Employees :
Employer to ensure Wages are paid equally
to Male and Female incase they are doing similar job in the Establishment as under
Equal Remuneration Act, 1976.
4. Protection of Employees Rights :
If any employee as stated in this Notification is
paid more than the specified Minimum Wages in their Area or by their Establishment
under agreement under Industrial Disputes Act, 1947, that shall be continued to be
implemented and shall be considered as the Minimum Wages for them.
5. Equal Pay for Similar Work :
The workers range/class which are not mentioned in
the schedule, shall be paid as per the payment of similar co-workers. Incase of any
dispute in the matter, Employer will setup a committee of 9 members which will be
represented by 3 from independent observers, 3 from Employers and 3
representatives from the employee and post discussion to implement the
recommendations by the committee within 2 months. The Employer will appoint
‘Working Officer’ to ensure smooth implementation of the recommendations of the
Committee. Further continuation of the dispute, the Employer can appoint ‘Executive
Officer’ and the recommendations of the ‘Working Officer’ and the ‘Executive
Officer’ needs to implemented within one month of circulation. Decision of the
‘Executive Officer’ will be considered as final and all parties will agree to it.
6. Protection of Minimum Wages : Part time workers wages shall be paid for 8 hours
not lesser than the wages paid for one day to the similar co-worker. One day shall be
calculated for 8 hours. If the employee works for less than 8 hours, wages shall be
calculated and paid for the full day. Incase of any dispute in this regard, the Employer
can refer the matter by following the procedure as stated in the above clause 5.
7. Minimum Wages towards Working Hours : A Day shall be considered for 8
hours. If the employee works for less than 8 hours, wages shall be calculated and
paid on the daily average as per rule 27 of the Karnataka Minimum Wages Act,
1958.
8. Method of Payment of Minimum Wages : Employer shall ensure payment of Fixed
Basic Wages & Dearness Allowance shall be rounded off to the nearest rupee.
9. Payments through Bank : Under Section 6 of the Payment of Wages Act, 1936,
Employer shall ensure that Wages to the employees are directly credited to the
respective bank accounts.
10. Minimum Wages to Contract Laborers : Wherever the Establishment has
engaged employees under The Contract Labour (Abolition & Regulation) Act, 1970,
Employer shall ensure that implementation Minimum Wages under this Act and
applicability of all other applicable Acts to such employees.
11. Social Security Implementation : Employer shall ensure implementation of the
following Social Security Implementation and required deduction shall be made from
(Basic + Dearness) payable to the employee and shall be remitted from the
Employers account and this (employer contribution) should not be deducted from the
employees.
1. Employees’ State Insurance Act, 1948
2. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
12. Wages on Holidays : Any employee working on Weekly off or Festival Holiday,
double of the daily wages shall be paid, under the provisions of the Minimum Wages
Act 1948 & Karnataka Industrial Establishments (National & Festival Holidays) Act,
1963.
13. Wages of extra work : Employee working more than their specified hours in a day,
he shall be entitled to wages at the rate of twice as per the Section 14 of the Minimum
Wages Act, 1948.
14. Wages to Apprentices : Any Employer who appoints Apprentices under the
Apprentices Act, 1961 such Apprentices shall be paid as per their applicable Act and
Rules.
15. Wages for Trainees : Any Establishment wherein the Employer engaged
Trainees, during the training period the Trainees shall be paid 75% of the
employees working in that category of work as stated under the Industrial
Employment (Standing Orders) Act, 1946.
16. Wages during Government Schemes / Programs : Excluding above clause No.
11 & 12, employees getting trained shall be paid the Minimum Wages. Incase of any
training or programs being conducted by Central Government/State Government,
Employers shall pay the Minimum Wages as applicable to the trainees.
17. Continuation of Benefits : If existing wages and facilities to the employees are more
beneficial than as specified in this notification, employees will continue to enjoy such
wages and facilities.
18. Wages to Physically Challenged : Incase physically challenged employees are
working in the Establishment, they will be paid equally at par with that of normal
employees under the provisions of Equal Opportunities, Protection of Rights and Full
Participation) Act,1995.
19. Mandatory Payment of Minimum Wages :
It is mandatory to ensure that
Minimum Wages and due DA is calculated and paid from time to time.
20. Category of Employees :
Category of Employees have been split under 4 categories as under.
i) Unskilled Workers
Unskilled works is one which involves simple operations requiring little or more no
skill or experience on the job.
ii) Semi Skilled
Workers
Semi Skilled work is one which involves some degree of skill acquired through
experience on the job and which is capable of being performed under the supervision
and guidance of skilled workmen.
iii) Skilled Workers
Skilled work is one which involves skill acquired through experience on the job or
through training as apprentice in a Technical or Vocational Institution and the
performance of which for initiating accuracy and judgement.
iv) Highly Skilled
Highly Skilled means a person having higher proficiency of work capable of
precisely performing work such as map reading and supervise the work of skilled
and other categories of workers, who are working under him. He/She is capable of
giving directions to his subordinate workers and can independently work in a given
section.
21.
Zones have been notified as under :
Zone 1 - Brahut Bengaluru Mahanagar Palike Range.
Zone 2 - All other Corporations in the State and identified agglomerated areas.
Zone 3 - Any other region apart from Zone 2.
Zone 4 - Any other region apart from Zone 2 & 3.
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