Pixel Chemicals Private Limited has two factories, one in Madhya Pradesh and other one in Bihar. The management wants to fix different minimum wages for both the States. Is this permissible, if yes, explain the rule for

CS Executive · Setting up of Business Entities and Closure · PYQS · December 2023
Pixel Chemicals Private Limited has two factories, one in Madhya Pradesh and other one in Bihar. The management wants to fix different minimum wages for both the States. Is this permissible, if yes, explain the rule for fixation of different wages for different states.

Answer & Explanation:

Section 3 (3) of the Minimum Wages Act, 1948 provides the provisions for the fixing or revising minimum rates of wages under this section: different minimum rates of wages may be fixed for- different scheduled employments; different classes of work in the same scheduled employment; adults, adolescents, children and apprentices; different localities. minimum rates of wages may be fixed by any one or more of the following wage-periods, namely:— by the hour, by the day, by the month, or by such other larger wage- period as may be prescribed; and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated. Provided that where any wage-periods have been fixed under section 4 of the Payment of Wages Act, 1936, minimum wages shall be fixed in accordance therewith. Therefore, Pixel Chemical Private Limited may fix different minimum wages for two states where both factories are located i.e. one in Madhya Pradesh and other one in Bihar.

Topics: Labour Law

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