Minimum Wages

Minimum Wages Act, 1948 Compliance

Ensure fair wages for your workforce, avoid costly penalties, and protect your business from legal disputes.

Introduction and Value Proposition

The Minimum Wages Act, 1948, is a fundamental labour law that mandates the payment of minimum wages to workers in scheduled employments. With rates varying by state, skill level, and industry, staying compliant is a dynamic challenge. Failure to pay the correct minimum wage can result in severe penalties, employee disputes, and damage to your reputation. PCS provides expert advisory services to help you navigate these complexities, ensure accurate wage payments, and maintain full compliance with all applicable notifications.

Why Choose PCS?

● Pan-India Coverage: We monitor wage revisions across all states, providing you with accurate, localized information.

● Proactive Updates: We alert you to upcoming wage revisions and their potential impact on your payroll.

● Risk Mitigation: Our diligent audits and record-keeping guidance significantly reduce your risk of penalties and claims.

Key Challenges We Solve

● Multiple Revisions: Keeping track of frequent and disparate revisions in minimum wage rates across different states and categories.

● Correct Classification: Accurately classifying workers into unskilled, semi-skilled, skilled, and highly skilled categories for correct wage application.

● Overtime Calculation: Calculating the correct overtime wages as per the prescribed norms (often double the ordinary rate).

● Record Maintenance: Maintaining mandatory records like wage registers, overtime registers, and muster rolls to prove compliance during inspections

Our Services

Wage Rate Advisory

Providing up-to-date information on the applicable minimum wage rates for your industry, state, and worker classification.

Payroll Audit

Reviewing your payroll to ensure all employees are paid at or above the statutory minimum wage.

Overtime Calculation

Guidance on correctly calculating overtime wages according to the Act.

Record Maintenance

Assistance in maintaining all prescribed registers (Register of Wages, Overtime Register, Muster Roll) to avoid penalties

Liaison with Authorities

Acting as your representative in communications with the Labour Commissioner and during inspections.

Claim Representation

Support in defending against claims of underpayment filed by employees.

Frequently asked questions:

How often do minimum wage rates change?

Rates are revised by state governments at varying intervals, often annually or biennially. It is crucial to stay updated.
What is included in the "minimum wage"?

It can be a basic wage or include a basic + cost of living allowance (CLA). The components are defined in the government notification.
What are the penalties for non-payment?

Penalties can include payment of the wage difference, fines, and even imprisonment.

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