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Industrial Relations Advisers, Room # 03, Falaknuma Building,

Management & Labour Laws 39, Abdullah Haroon Road,

Consultants Karachi - 74700

 

 

Circular No. C 157 Date: -24-08-2015

 

Minimum Wage of Rs. 13,000/= p.m. of

Unskilled Workers declared by the Punjab Govt.

 

 

1-     Although at the time of presenting the Federal Govt. budget of 2015-16 it was announced that the minimum wage of unskilled workers has been raised to Rs. 13,000/= p.m. but after the 18th amendment of the Constitution the Federal Govt. has no longer such jurisdiction in the labour matter.

2-     However the Punjab Govt. has taken proper legal step of announcing Rs. 13,000/= p.m. or Rs.500/= per day as the minimum wage of adult male, female and juvenile workers w.e.f. 01-07-2015 based on 26 working days in a month under Section 6 of the Minimum Wages Ordinance, 1961 on recommendation of its Minimum Wages Board and allowing deductions/adjustment of Rs.162/= p.m. for providing housing accommodation and Rs. 33/= p.m. for providing transport facility as per the Punjab Govt. Gazette Notification dated 07-08-2015.

3-     The Notification also provides that other matters shall be regulated by the Factories Act, 1934, Payment of Wages Act, 1936 and other relevant Labour Laws.

4-     This minimum wage declared is inclusive basic wage and all other regular allowances whatsoever. If the present wage of any unskilled of adult male, female and juvenile worker is higher than this minimum wage declared now, his present wage cannot be reduced.

5-     Naturally management action would be required to revise wages of semi-skilled and skilled workers keeping in view this minimum wage of unskilled workers.

6-     Contributions and other matters under the Social Security and EOB shall be governed by the provisions of these laws.

7-     The above may be carefully read along-with the Gazette Notification. In case of any doubt, you may consult your Labour Laws Consultant.

8-     Similar legal steps on the Minimum Wages by other provinces are awaited.

 

 

For M/s. S. M. Yaqoob

Industrial Relations Advisers

& Labour Laws Consultants