The Industrial Relations Advisers,

Management & Labour Laws Consultants

 

Room 3, 1st floor, Falaknuma Building, Near The Laboratory & Haroon Radio, Abdullah Haroon Road, Karachi

Phone: 32727266 & 32729770 Fax: 32729770 (S M Iqbal)  Email: iqbalblund@hotmail.com 

 

 

Circular No. C 124 Date: 27-11-2010

 

 

Minimum Wages declared

w.e.f. 01-07-2010 in the Sindh

 

The Punjab Govt. declared the Minimum Wages w.e.f. 01-07-2010 of all categories in 51 types of industries and Rs. 7000/= p.m. Minimum Wages for male and female unskilled workers and juvenile workers in all industries under the Minimum Wages Ordinance, 1961.

On reference the Minimum Wages Board, Sindh under the Minimum Wages Ordinance, 1961 on the lines of the Punjab gave similar recommendations for 40 given industries and the minimum wages of Rs. 7000/= p.m. for unskilled workers in all industries w.e.f. 01-07-2010 which wage published in the Sindh Govt. Gazette dated 14-10-2010 inviting objections and suggestions within 30 days. Now the Labour Dept. Govt. of Sindh vide its Notification No. L-II-11-13-4/78 dated 15-11-2010 expected to be published in the Sindh Govt. Gazette has declared the Minimum Wages w.e.f. 01-07-2010 with some departures from the minimum wages recommended by the Board. The salient features of the same are explained in the subsequent paras.

 

1.            Making it effective from back date w.e.f. 01-07-2010 is over burgeoning the employers to pay arrears who are not responsible for delay in the declaration.

2.            The 40 types of industries mentioned by the Board recommendation notified have been eliminated.

3.            The Minimum Wages of adult unskilled workers (male or female) and juvenile workers employed in all industrial / commercial undertakings in the province of Sindh shall be Rs. 269.23 per day i,e, Rs. 7000/= p.m. w.e.f. 1st, July, 2010.

4.            The Minimum Wages for the workers above the unskilled workers i,e, semiskilled, skilled, highly skilled, and other above categories of workers / employees have not been specifically fixed as in the Punjab or as in the past notifications under the Ordinance, 1961 but the same has been left to the employers which should be more than the minimum wages of unskilled workers, ofcourse keeping in view the nature and skill of every type of Job.

5.            The Minimum Wages for piece rated workers has to so fixed that the worker is enable to earn not less Rs. 33.66 per hour in any working day i,e, above Rs. 269.66 per day of 8 shours of work or above Rs. 7000/= per month.

6.            The Minimum Wages are based on 8 hours daily normal work. The monthly working days would on average come to 26 days monthly including festival holidays with pay and leave with pay and keeping in view daily, weekly working hours, rest intervals, weekly holidays, conditions of overtime and other similar matters under the relevant labour laws, irrespective of male or female workers.

7.            The Minimum Wages rates shall apply to times rated / whole time workers including probationary, temporary, permanent and piece rated workers. The definition of worker given in Section 2(9) of the Ordinance is wide to include all types / categories of employees. The apprentices shall continue to be governed by the Apprenticeship Ordinance, 1962.

8.            Please note that the minimum wages fixed includes basic wages and all other regular allowances. 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, contribution under Social Security Ordinance & EOB Act, any travelling allowance or travelling concession where traveling is involved due to nature of Job of the worker like salesman and any sum paid to defray special expenses incurred in respect of employment of the worker.

9.            The Minimum Wages are the minimum and shall not be regarded as the maximum wage and the existing higher wages shall not be reduced. The worker shall continue to enjoy existing facilities, benefits as given in Clause (IX) of the Notification. Similarly no variable or incentive allowance or value of welfare facilities shall be adjusted against the Minimum Wages, unlike the Punjab which has allowed minor adjustment for providing housing accommodation and transport.

10.        It goes without saying that annual increments, voluntary increase, and increase through the C.B.A. agreements or any law shall be in addition to the minimum wage or the wages of the workers at the relevant time/s.

11.        (i) The practically difficult provision has been made that all establishment registed under any law shall pay wages to the employees through cross Cheque / Bank transfer.

(ii) There is no provision of registration under the Standing Orders Ordinance, 1968, Section 9 of the Factories Act, 1934 provides only notice of occupation / commencement of work, Section 1 (3) of the P. E. Social Security Ordinance, 1965 requires notification by the provincial Govt. and Section 1(4) of the E.O.B. Act, 1976 provides automatic application on meeting the condition of application which leaves only the W.P. Shops and Establishment Ordinance,1969, though strange it provides for registration of establishment and renewal like a gun license, but this law covers only small establishments leaving large factories and industries. The payment of wages by cheque or bank transfer for the employees of small establishments would not be reasonable. Evenotherwise the Payment of Wages Act, 1936. being specific special law for payment of wages which applies to all has no such provision and the Notification cannot override the provision of the Act, The Minimum Wages Ordinance, 1961 itself has no such provision and the Notification cannot amend the Ordinance. Therefore this provision being illegal creating unnecessary problem and confusion needs to be withdrawn forthwith by the Sindh Govt.

Please read the notification diligently and in case of any doubt consult your labour laws consultant. Similar actions by the Balochistan and K. P. provinces are still awaited.


For M/s S.M. Yaqoob

Industrial Relations Advisers

& Labour Laws Consultants