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Total Wages should be more than notified Minimum wages

Category: Court Cases

In one case, the supreme court has also clarified that an establishment will be excluded from the applicability of Minimum Wages Act when the wages of the employees are more than the prescribed or revised rates of minimum wages as declared by the prescribed authorities. It has also been held that an employer paying higher than the minimum wage, is not required to pay variable dearness allowance separately. 

(Airfreight Ltd. vs State of Karnataka & Others,1999 LLR 1008 (SC)

 

In another case, the Bombay high court has held that when the total remuneration is more than the minimum wages plus dearness allowances, it will not amount to unfair labour practice.

( Harilal jechand Doshi Ghatkopar Hindu Sabha hospital vs Maharashtra General Kamgar Union & And.1999 LLR 1159 (Bom HC)

 

 

The sum of total of the minimum wages and the Dearness allowance should be not less than the minimum wages as notified. If the consolidated amount comprising of the wages and the variable Dearness allowance is less than the notified minimum wages, the employees would be entitled to recover the differential amount.Also the variable Dearness allowance forms a part of the minimum wages.

( Ram prasad Soni vs Authority under payment of Wages Act, and others,2013 (139) FLR 1099:2014 LLR (SN) 218 (MP HC)