Tamil Nadu Revises Minimum Wages: A Step Towards Fair Compensation

On October 23, 2024, the Government of Tamil Nadu announced important revisions to minimum wage rates across several industries. This move aims to enhance the livelihoods of workers by aligning their compensation with the rising cost of living

A. Paper and Machine-Made Paper Industry

    One of the significant updates is in the Paper Industry, where the minimum wage now includes a dearness allowance linked to the Average Chennai City Consumer Price Index (CPI) of 2010, set at 161 points. For every point above 161, employees will receive an additional ₹44.95 per month.

    Wage Calculation: Monthly wages will be divided by 26 to determine daily wages.

    Equal Pay for Equal Work: There will be no distinction in pay between male and female employees performing similar tasks.

    Existing Wages: Workers currently earning above the new minimum will continue to receive their higher wages.

    B. Motion Picture Industry

    The Motion Picture Industry, encompassing production, distribution, and publicity, will also see changes. Here, the dearness allowance is set at ₹52.40 per month for every CPI point exceeding 161.

    Daily Wage Calculation: Monthly wages will again be divided by 26.

    Annual Review: The dearness allowance will be recalculated annually, based on the previous year’s CPI average.

    Gender Pay Equality: Similar to the paper industry, there will be no wage disparity based on gender for similar work.

    C. Mat Weaving and Basket Making

    In the traditional crafts sector, the Mat Weaving and Basket Making industry will have its dearness allowance calculated differently: workers will receive ₹1.46 per point per day for every CPI point above 161.

    Monthly Calculation: To find monthly wages, daily wages will be multiplied by 30.

    Equal Pay Policy: As in other sectors, male and female workers will be paid equally for similar work.

    Continuation of Higher Wages: Workers earning more than the new minimum will maintain their existing wages.

    D. Security Guards

    The Security Guards sector will have its wage structure based on zone classifications, categorized as follows:

    Zone A: Municipal Corporations

    Zone B: Various Municipalities

    Zone C: Other areas

    For security guards, the dearness allowance will be ₹56.00 per month for each CPI point above 161. The calculation methods and policies regarding gender pay equality mirror those of the other industries.

    The Revised Rates are effective from October 23rd 2024.

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