Karnataka - Minimum Wages

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
Notification  dated 30-Dec-2017
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.