Dear hrogcl
The question whether minimum wages are to be paid as per Central Government rates or State Governmets rates cannot be decided on random basis. The question needs tobe addressed on the basis of the provisions of law.To ascertain as to what rate is applicable to a particular industry, it is to be first determined whether the particular industry falls under the control of central sphere or State sphere.This is necessary to know which is the appropriate government for the said particular industry.If the industry is under the control of Central Government, the rates notified by the Central Government are to be paid and so is the case with the State Government.
Therefore it is pertinent to refer to Sec.2(b) of the Minimum Wages Act 1948 which defines "Appropriate Government". It says Appropriate Government means :
i) in relation to any scheduled employmentcarried on by or under theauthorityof the Central Government or railway administration or in relation to a mine,oil field or major port or any corporation established by central Act, thecentral is the Appropriate Government; and
ii) in relation to any other scheduled employment, the State Government is the Appropriate Government.
If your factory is a mine or oil field or being run under the control of Central government or was established under a Central Act, the Central Government is the Appropriate Government. If it is not falling under any of the above categories, then State Government is the Appropriate Government.After determining this issue, you can pay the minimum wages at the appropriate rate.
B.Saikumar
HR & Labour Law consultant
Mumbai
Tel: 09930532927