Minimum Wages in Uttar Pradesh effective 1st April 2024
Overview : The parliament of India enacted the Minimum Wages Act of 1948, aiming to secure the economic rights of the workers by defining the minimum pay for different classes of workers. The Act addresses the increasing concerns of discrimination of wages among employees. Workers are classified into categories like skilled, semi-skilled, and unskilled, with separate bare minimum wage rates for every class.
Understanding Minimum Wages
Minimum wages are the lowest remuneration the employer is legally obligated to pay the employees. Employers must be aware of the minimum wages to ensure compliance with labor regulations and guarantee fair and just employee compensation. The minimum wages need to be checked on the basis of monthly as well as daily payment of wages to the workers. For the purpose of daily wage calculation, the number of days in the month is calculated at 26 days.
The employer should be careful when determining the salary structure for its workers, as the total wages paid to the employees are not considered for the purpose of meeting the minimum wage requirement under the Law. The two components of the salaries, Basic Pay and the Variable Dearness Allowance (VDA), must be equal to or more than the prescribed amount based on the particular employment class. The legislation is significant for both employees and employers. Effective from April 1, 2024, the Uttar Pradesh Government has updated the minimum wage rates according to the classes outlined below:
Table of Minimum Wages for Uttar Pradesh
Class of Employment | Basic Per Month | DA Per Month | Total Per Month | Total Per Month Increase | Increase (%) |
---|---|---|---|---|---|
Unskilled | 5750 | 43.39 | 10089 | 9743 | 3.46 |
Semi-skilled | 6325 | 47.73 | 11098 | 10717 | 3.6 |
Skilled | 7085 | 53.47 | 12432 | 12005 | 3.6 |
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