The Industrial Relations Advisers,
Management & Labour Laws Consultants
Room 3, 1st floor, Falaknuma Building, Near The Laboratory & Haroon Radio, Abdullah Haroon Road, KarachiPhone: 32727266 & 32729770 Fax: 32729770 (S M Iqbal) Email: firstname.lastname@example.org
Circular No. C – 122 Date: 21-08-2010
Minimum wage of Rs 7000/= p.m. for all Unskilled workers and
other categories of workers in 51 types of Industries declared by the Punjab
1. The Punjab Govt has again taken the lead to raise and revise the minimum wages of workers under the Minimum Wages Ordinance, 1961 as per it’s Notification dated 28-7-2010 published in the Punjab Gazette, Extra Ordinary Issue from pages 259 to 374 effective from 1st July, 2010. We would like to give our comments on some salient issues on the matter as given below.
2. The notification has two separates parts viz.
(i) Increase in the minimum wages of male, female and juvenile unskilled workers in all industries to Rs. 7000/= p.m. or Rs. 269.23 per day. And
(ii) Increase and refixation of the minimum wages of all categories of workers including unskilled workers in the 51 types of the given industries which may be noted from the Gazette notification starting from Rs. 7000/= per month or Rs 269.23 per day to the unskilled workers and going up to various higher categories of the workers.
(iii) Wages of apprentices shall be regulated as per the Apprenticeship Ordinance, 1962 also in the 51 types of the given industries.
3. Rs 70/= p.m. and Rs 19/= p.m. may be adjusted from the above wages declared for all above categories (i)&(ii) for providing house accommodation and transport respectively to the workers which are merely eye wash.
4. Please note that all the above minimum wages fixed are inclusive of the basic wages and all regular allowances whatsoever.
5. In other than 51 given industries unskilled workers wage shall be Rs 7000/= p.m. or Rs 269.23 per day and to maintain wage deferential in higher categories the employer himself may fix wages of semiskilled skilled or higher categories of workers higher than the unskilled workers, as per his choice.
6. The wage has the same meaning as given in Section 2(8) of the Ordinance which includes basic wages and all other remunerations and allowances paid to the workers excluding annual bonus, gratuity, contributions under Social Security Ordinance & EOB Act, any travelling allowance or travelling concession where travelling is involved due to nature of Job of the worker like salesman and any sum paid to defray any special expenses incurred in respect of employment of the worker.
7. The worker has the same meaning as given in Section 2(9) of the Ordinance which is very wide and includes any person employed as an apprentice in any industry, to do any skilled or un-skilled, intellectual, technical, clerical, manual or other work, including domestic work, for hire or reward but does not include:-
(i) Persons employed by the [Federal Government] or a Provincial Government;
(ii) Persons employed in coal mines in respect of whom minimum wages may be fixed under the Coal Mines (Fixation of Rates of Wages) Ordinance, 1960; and
(iii) Persons employed in agriculture. (What a pity to exclude agriculture farms workers)
8. The existing salary / wage of any employee / workers of any categories shall not be reduced and the minimum wages fixed, are to be regulated as per the provisions of the Factories Act, 1934, W.P. Shops and Establishment Ordinance, 1969, and other relevant Labour Laws on 8 hours daily / 48 hours weekly work, 26 working days in a month, weekly holidays, overtime and paid gazetted festival holidays.
9. Industry has been defined in Section 2(6) of the Ordinance adopting the definition of industry under Section 2(xiv), IRO, 1969 including plantation as defined in section 2(iii) of the Payment of Wages Act, 1936 which is wide enough to include all industrial and commercial establishments.
10. All monthly wages fixed have been divided by 26 normal working days in a month to fix the daily wage and, therefore, monthly rated and daily rated workers get the same wages for normal work of 26 days in a month, Since monthly wage includes wages for weekly holidays, and the daily wages fixed come to the same as monthly wages, the daily wages fixed include element of wages for weekly holidays in it and, therefore no extra / separate payment is required to be made to the daily rated workers for weekly holidays:
11. The minimum wages fixed for unskilled workers in all industries and the minimum wages fixed in 51 types of the given industries apply to all whole time workers whether they are permanent, temporary, monthly rated, pice rated or daily wage rated.
12. In the 51 given industries if any occupations existing in any such industries are not included in the above mentioned notification, the employer himself may place such occupations at appropriate place which shall be reported to the Chairman of the Minimum Wages Board for any necessary action.
13. These minimum wages fixed are effective from 1-7-2010 and, annual increments, any additional allowance allowed by any law or increase voluntarily or under the CBA agreements would be in addition to these minimum wages fixed w.e.f 1-7-2010.
14. The above may be carefully read along-with the Gazette to understand the matter property. In case of any doubt you may consult your Labour Laws consultant.
For M/s S.M. Yaqoob
Industrial Relations Advisers
& Labour Laws Consultants