Minimum Wages Enforcement in India: Shops asked to Provide Fair Compensation to Employees

June 30, 201610:39 am
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Minimum wages enforcement has stepped up in all 14 districts and inspections are under way in Kerala, India to ensure fair compensation to employees working in shops, companies and retail outlets.

Minister for Excise and Labour, T. P. Ramakrishnan has said that all shops and companies must pay minimum wages to employees and give benefits such as overtime wages and proper working conditions.

In its endeavour to step up efforts, the government has raised welfare pensions to a minimum of Rs.1,000, and this amount will be delivered to the doorstep of 35 lakh beneficiaries. The ban on recruitment has been removed and officials of different departments have been asked to report to the government about vacancies, Ramakrishan told The Hindu.

For employees those who face underpayment of wages in the state of Thiruvananthapuram, the state government has decided to introduce an e-payment facility that would ensure disbursal of minimum wages. This system will be introduced in certain sectors and payroll will be monitored by the Labour department. The employees will get an online wage slip.

Labour Minister Shibu Baby John told Assembly that the gateway would benefit private sector employees, including those working in unaided schools and hospitals, New Indian Express reports.

“Five banks have agreed to partner with the government for the initiative titled wage security scheme. The Keltron has developed software for this,” the Minister told the Assembly on Friday.  Terming the scheme as the first-of-its-kind in the country, the minister said the pilot phase will be implemented in the capital.

Seven sectors have been included in the pilot phase to include unaided schools, commercial establishments, shops, IT firms, jewellers and hospitals. Discussions on scheme implementation were held with the representatives of nationalised banks, employers in private sectors.

The government is also drafting a Bare Wages Bill for workers in the sectors which do not come under the purview of minimum wages rules, the Labour Minister added. Steps have also been taken to make necessary amendments to Minimum Wages Act 1948, Kerala Industrial Establishments Act, 1958, Kerala Shops and Commercial Establishments Act, 1960, and plantation labour rules.

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