On October 2, 2024, the Government of Tamil Nadu issued a significant notification regarding the revision of minimum wages for various employment sectors.
Key Updates on Minimum Wages
1. Revision of minimum rates of wages for the employment in Food Processing Industry under the Act.
The revised minimum rates of wages for the food processing industry are categorized based on two zones:
- Zone A: All Municipal Corporations
- Zone B: All areas outside Municipal Corporations
Dearness Allowance (DA):
- The DA is linked to the Average Chennai City Consumer Price Index (CPI) for the year 2010, set at 161 points (base year 2001=100). For every point increase above 161, an additional Rs. 44.65 per month will be granted.
- The DA will be calculated annually on April 1, based on the average indices from the previous January to December.
- The initial calculation of DA will be effective from the notification date, referencing the previous year’s average CPI.
- Daily wages will be calculated by dividing the monthly rate by 26, and monthly wages by multiplying daily rates by 30.
- There will be no wage distinction based on gender for similar work. Existing higher wages will continue if they exceed the newly set minimums.
2. Revision of minimum rates of wages for the employment in Neera Tapping under the Act.
The minimum wages for neera tapping also include specific DA provisions:
Dearness Allowance:
- Linked to the Average Chennai City CPI at 161 points; for each additional point, Rs. 3.04 per day will be added.
- The DA will be recalculated annually on April 1, based on the preceding year’s average CPI.
- Daily wages will be multiplied by 30 to determine monthly wages.
- No gender-based wage differences will be made for similar work, and existing wages exceeding the new minimums will be maintained.
3. Revision of minimum rates of wages for the employment in Aerated Water Manufactory under the Act.
For employees in aerated water manufacturing, the following changes apply:
Dearness Allowance:
- The DA is also linked to the Average Chennai City CPI at 161 points, with Rs. 38.45 per month added for each point above.
- The DA will be calculated annually on April 1 based on the previous year’s indices.
- Wage calculations will follow the same daily and monthly conversion rules as above, with no gender-based wage distinctions.
4. Revision of minimum rates of wages for the employment in any Oil Mill under the Act.
Wages for oil mill employees have similarly been revised:
Dearness Allowance:
- DA is tied to the Average Chennai City CPI at 161 points, with an increase of Rs. 44.40 per month for each point above.
- Annual calculations of DA will take place every April 1, reflecting the previous year’s averages.
- Wage calculations will adhere to the same rules regarding daily and monthly rates, ensuring equal pay for equal work, regardless of gender.
