To
calculate the labour cost in India two most important parameters are to be
known to the estimator. What is the amount of wages we have to pay to workers?
Whether the wages are same for all the labours or it differs. Second parameter
is the man-hour to be spent for completion of a particular type of activity.
How many persons of different category are to be deployed for that activity? Are
there any common guide lines to calculate the parameters? Yes. Regarding the
labours wages there is a common guide line in India. Remuneration which the workers are entitled
for the work performed by them can be find out by Minimum wages act in India..
The Minimum Wages Act, 1948: It is
landmark legislation in India for regulating of wages in the country. A basic
rate of wages and a special allowance i.e. cost of living allowance; A basic
rate of wages with or without cost of living allowance and case value of
concessions for supplies of essential commodities; An all inclusive rate, i.e.
basic rate, cost of living allowance and cash value concessions. The Government
may fix the minimum rates of wages either by the hour, by the day, by the month
or by such large wage-period as may be prescribed which may be revised at
intervals and reviewed
The Government may fix or revise minimum wages either by
committee procedure of by notification procedure.. The rates recommended by the
committee and accepted by Government or the rates determined by Government
after consideration of all representatives should be published in the Official Gazette.
Minimum Wages in India are revised during the month of April and October of
every year. The living wage is an informal benchmark, not a legally enforceable
minimum level of pay, like the national minimum wage. The Indian Constitution
has defined a 'living wage' that is the level of income for a worker which will
ensure a basic standard of living including good health, dignity, comfort,
education and provide for any contingency.
However, to keep in mind an
industry's capacity to pay the constitution has defined a 'fair wage'.. Fair
wage is that level of wage that not just maintains a level of employment, but
seeks to increase it keeping in perspective the industry’s capacity to pay India
introduced the Minimum Wages Act in 1948, giving both the Central government
and State government jurisdiction in fixing wages. The act is legally
non-binding, but statutory. Payment of wages below the minimum wage rate
amounts to forced labour.
Wage Boards are set up to review the industry’s
capacity to pay and fix minimum wages such that they at least cover a family of
four’s requirements of calories, shelter, clothing, education, medical
assistance, and entertainment. Under the law, wage rates in scheduled
employments differ across states, sectors, skills, regions and occupations owing
to difference in costs of living, regional industries' capacity to pay,
consumption patterns, etc. Hence, there is no single uniform minimum wage rate
across the country and the structure has become overly complex.
Since minimum
wages are not standard and from one state to other state it varies because of
living conditions and enforcement of minimum wages by both state and central
governments it becomes utmost important for the estimator to understand which
Minimum wages act ( whether state minimum wages act or central minimum wages
act) is to be followed.There are standard guidelines and official notifications
and amendments from time to time are to be collected and kept in position ready
before starting the estimation which will sort out calculating the first
parameter of the direct manpower calculations. The minimum wages rate for
Indian workers are normally indicated not with their technical designation like
welder, fitter, rigger, electricians, khalasi
and helpers. They are divided in to four different disciplines classified.. Technicians with high
degree of skills to perform the works are called highly skilled labours.
Normally High pressure welders, electricians, fabricators, Foreman etc fall
under this heading. Fitters , junior electricians, structural welders ,Riggers
are categorised in skilled workers levels similarly khalasis are considered in
semiskilled level and helpers are in unskilled level.
The minimum rates at delhi
as below:
The
following rates of minimum wages shall be applicable in respect of unskilled,
semiskilled and skilled categories in all schedules employments except
employment in the establishments where the workers are given facilities of
meals or lodging or both by the employer
The
estimator to identify the state and place of work to be carried out and collect proper
minimum wages document to fix the wages of different disciplined people.
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