On August 30, 2024, the Industries, Energy, Labour, and Mining Department of Maharashtra issued a significant update regarding minimum wages. This new notification marks an important revision from previous wage rates established under the Minimum Wages Act, 1948.
Context of the Notification
The Government of Maharashtra first revised the minimum wages for certain scheduled employments on April 15, 2011. On August 30th2024, a comprehensive review has led to a further revision of these wage rates. This update reflects the government’s commitment to ensuring fair compensation for employees across various sectors, particularly those employed in hospitals not covered under a specific entry in the schedule.
Revised Wage Rates
The new minimum wage rates are categorized into three zones based on the geographic and economic conditions of different areas in Maharashtra. These zones are:
- Zone I: Includes areas within “A” and “B” Grade Municipal Corporations.
- Zone II: Encompasses areas within “C” and “D” Grade Municipal Corporations, “A” class Municipal Councils, and cantonment areas.
- Zone III: Covers all other areas not included in Zone I or Zone II.
Here are the revised monthly minimum wages:
| CLASS OF EMPLOYEES | ZONE I | ZONE II | ZONE III |
|---|---|---|---|
| Skilled | ₹18,065 | ₹17,460 | ₹16,850 |
| Semi-skilled | ₹16,595 | ₹15,985 | ₹15,475 |
| Unskilled | ₹15,475 | ₹14,865 | ₹14,260 |
These rates reflect the basic minimum wages payable to employees based on their skill level and the economic conditions of the zone they work in.
How to Compute Wages
Daily Wages: For employees working on a daily basis, the minimum daily wage is calculated by dividing the monthly wage by 26 days. This figure is rounded to the nearest paisa.
Hourly Wages: For part-time employees, the hourly wage is calculated by dividing the daily wage by 8 hours, then adding a 15% rise to account for additional costs. This rate is also rounded to the nearest paisa.
Inclusions: The minimum wage rates are inclusive of:
- Remuneration for the weekly day of rest.
- Basic rates, Cost of Living Allowance (COLA), and any cash value of concessions provided.
Definitions of Employee Classes
- Skilled Employee: This category includes workers who perform tasks with efficiency, exercise significant independent judgment, and undertake responsibilities crucial to their roles.
- Semi-skilled Employee: These workers handle routine tasks requiring specific skills but have limited scope in decision-making. Most important decisions are made by others.
- Unskilled Employee: Employees in this category perform simple duties with minimal judgment or experience required. Their work generally involves physical effort and familiarity with various goods.
Cost of Living Allowance (COLA)
Calculation: COLA is determined based on the average Consumer Price Index (CPI) for working-class individuals across eleven centers in Maharashtra. For every point rise in the CPI over a baseline of 454 points, employees receive a special allowance of ₹30.00 per month.
Declaration: The Competent Authority calculates and declares the COLA twice a year:
- In the last week of July for the period from July to December.
- In the last week of January for the period from January to June.
Adjustments: If the rate of minimum wages is fixed at a different time than the start of these periods, the COLA for the remaining months will be declared accordingly.
Effective Date
The revised wage rates will come into effect from August 2024. This timing ensures that employees and employers have a clear timeline for implementing these changes.
The revision of minimum wages and the introduction of new wage rates and allowances signify the Government of Maharashtra’s ongoing efforts to address economic disparities and improve the livelihood of workers.
