Updated : August 07, 2024Minimum Wages in NCT of Delhi effective 1st Oct 2023
Overview : The parliament of India enacted the Minimum Wages Act of 1948, aiming to secure the economic rights of workers by defining the minimum pay for different classes of workers. The Act addresses the increasing concerns of wage discrimination among employees. Workers are classified as skilled, semi-skilled, and unskilled, with separate bare minimum wage rates for every class.
Understanding Minimum Wages
Minimum wages are the lowest remuneration the employer is legally obligated to pay the employees. Employers must be aware of the minimum wages to ensure compliance with labor regulations and guarantee fair and just employee compensation. The minimum wages need to be checked on the basis of monthly as well as daily payment of wages to the workers. For the purpose of daily wage calculation, the number of days in the month is calculated at 26 days.
The employer should be careful when determining the salary structure for its workers, as the total wages paid to the employees are not considered for the purpose of meeting the minimum wage requirement under the Law. The two components of the salaries, Basic Pay and the Variable Dearness Allowance (VDA), must be equal to or more than the prescribed amount based on the particular employment class. The legislation is significant for both employees and employers. Effective from Oct 1, 2023, the government of the National Capital Territory of Delhi has updated the minimum wage rates according to the classes outlined below.
| Class of Employment | Basic Per Month | VDA Per Month | Total Per Day | Total Per Month |
|---|---|---|---|---|
| Unskilled | 17,234 | 260.00 | 673.00 | 17,494.00 |
| Semi-skilled | 18,993 | 286.00 | 742.00 | 19,279.00 |
| Skilled | 20,903 | 312.00 | 816 | 21,215 |
| Clerical and supervisory staff (Non-Matriculate) | 18,993 | 286 | 742 | 19,279 |
| Clerical and supervisory staff (Matriculate but not Graduate) | 20,903 | 312 | 816 | 21,215 |
| Clerical and supervisory staff - Graduate and above | 22,744 | 338 | 888 | 23,082 |
Why Choose Us
Setindiabiz is a professional consulting firm specializing in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide comprehensive minimum wage solutions tailored to your specific needs:
- Expert Guidance: Accurate calculations and updates on regulations.
- Reliable Support: Ongoing assistance to navigate compliance and address notices received from the Labour Commissioner.
- Regulatory Compliance: Ensures adherence to minimum wage laws and reduces penalty risks.
- Positive Experience: Promotes fair wage practices and a good employee experience.
