On September 2, 2024, the Government of Puducherry issued a significant notification concerning the revision of minimum wage rates for employees across various occupations in the Union Territory. This comprehensive update aims to enhance fair compensation and address inflationary pressures on workers.
Occupations Covered by the Revision
The revised minimum wages will apply to a broad range of sectors, ensuring that employees in various fields receive fair compensation. The list includes:
- Shops & Establishments
- Automobile Workshops
- Bakeries and Biscuit Manufacturing
- Bricks and Tile Manufacturing
- Carpentry
- Chemical Industry
- Electronic Industry
- Food Processing Industry
- General Engineering
- Hotels and Restaurants
- Leather Goods Manufacturing
- Petroleum Gas Cylinder
- Oil Mills
- Paper and Related Manufacturing
- Plastic Industry
- Rice, Flour, Dhall Mills
- Security Guards
- Tailoring Industry
- Taxi and Autorickshaw Drivers
This diverse range reflects the government’s effort to cover various sectors crucial to Puducherry’s economy, ensuring that workers across different industries benefit from fair wage practices.
Dearness Allowance (DA) Guidelines
The notification introduces specific guidelines for calculating the Dearness Allowance (DA), a critical component of wages that helps offset the impact of inflation:
- Index Reference: The DA is tied to the Puducherry Consumer Price Index (CPI) Points for 2021, set at 366 points (with a base year of 2001=100). This index serves as a benchmark for adjusting wages to reflect changes in the cost of living.
- Annual Adjustment: The DA will be recalculated every April 1st. The adjustment will be based on the average CPI for the preceding 12 months, specifically from January to December of the previous year. This ensures that wage adjustments are in sync with the latest economic conditions.
Ensuring Fairness: Gender Equality in Wages
A crucial aspect of the new notification is the emphasis on wage equality:
- No Gender Discrimination: The government has mandated that there should be no discrimination based on gender. Both male and female employees must receive equal wages for performing the same work, reinforcing the commitment to gender equality in the workplace.
Calculation of Monthly Wages
The notification specifies how to compute monthly wages:
- Monthly Wage Calculation: To determine the monthly wage, employers should multiply the daily wage rate by 30. This standardizes the calculation and ensures consistency across different sectors.
Higher Existing Wages
One important provision ensures that current higher wage rates are not adversely affected by the new minimum wage revision:
- Continuation of Higher Wages: If an employee’s existing wages are higher than the newly established minimum rates, the higher wages will continue to be paid. This clause safeguards against any reduction in wages for employees already earning above the minimum standard.
The Revised Rates of Minimum Wages is available category wise in detail in the pdf attached below
