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               Circular No. C – 137                                                                                                                                       Date: -30-10-2012


Minimum Wages of Rs. 8000/= p.m. for Unskilled Workers and Juvenile

Workers w.e.f. 01-07-2012 declared by the Govt. of Khyber Pakhtunkhwa


                                              The Khyber Pukhtunkhwa Minimum Wages Board under section 4 of the Minimum Wages Ordinance, 1961 recommended the minimum wages of unskilled and juvenile workers employed in all Industrial undertakings in the Province of Khyber Pakhtunkhwa. The Labour Dept. Govt. of Khyber Pakhtunkhwa vide its Notification No. SOL(LD)1-14/2012 dated 20-09-2012 has declared the Minimum Wages w.e.f. 01-07-2012. The salient features of the same are explained in the subsequent paras.

1.      The minimum wages of unskilled workers (male and female) and juvenile workers employed in all industrial undertakings of any sort (registered or unregistered) located in the province of Khyber Pakhtunkhwa has been declared under the Minimum Wages Ordinance, 1961 at the rate of Rs. 8000/= p.m. or Rs. 307.69 per day w.e.f. 01-07-2012. This has very vide scope, it means that no employer can appoint any person below the minimum wages of Rs. 8000/= p.m.

2.      Section 2(6) of the Ordinance defines industry as contained in Section 2(xiv) of I.R.O., 1969. The term “industrial undertaking” is not used in the Ordinance but it could mean the same as the industry. The definition of industry under IRO, 1969 is so wide that it includes any business, trade, manufacture, calling, service, employment or occupation be it factory, industry or commercial organization.     

3.      The daily wage declared is 1/26th of the monthly wage which includes element of wages of the weekly day offs in it and, therefore, no separate payment is required to be made for weekly day offs.

4.      Please note that the minimum wage is inclusive of the basic wage and all regular allowances whatsoever.

5.      If wages of any unskilled worker or juvenile worker paid is more than the minimum wage, it cannot be reduced.

6.      The daily/weekly working hours, conditions of overtime work, etc shall be regulated by the Factories Act, 1934, Payment of Wages Act, 1936 and other relevant labour laws.

7.      Please note that all the categories of workers including permanent workers, time rated workers, temporary workers, piece rate workers and workers employed on contract basis are entitled to Rs. 8000/= p.m. Minimum Wages.

8.      The minimum wage declared is of the unskilled male and female workers and juvenile workers only. This would call for management action in respect of the workers above the unskilled categories to appropriately revise their wages.

9.      Please note that contribution of EOBI will remain on the wages of Rs. 6000/= p.m. declared under the Minimum Wages for Unskilled Workers, 1969.  

10.  The above may be carefully read along with the Gazette to further understand the matter. In case of any doubt, you may consult your labour laws consultant.