India restores minimum wage increase

India restores minimum wage increase
30 Oct 2018

The Cabinet in Delhi has restored the minimum wage increase that was scrapped by the Indian High Court in August.

Deputy chief minister Manish Sisodia told the Times of India: "Payment to those who have been directly employed on contract by the Delhi government, boards and corporations at minimum wage rates, or those who have been employed by contractors in various works of the Delhi government, shall continue to receive payments at rates prevailing before August 4."

The decision will see the minimum wages of unskilled workers rise from Rs9,724 (US$132.50) to Rs13,896 (US$189.35) per month, from Rs10,764 (US$146.67) to Rs15,296 (US$208.42) for semi-skilled workers and from Rs11,830 (US$161.20) to Rs16,858 (US$229.71) for skilled workers.

The rates initially came into effect on 1 April 2017, but were subsequently quashed by the High Court. 

Sisodia said the Delhi government would also “compensate the salaries as per the increased rates” of all those whose payment was either deducted or not provided during the two months following the High Court’s order. He claimed that the state government had “all the rights to give an amount above and beyond the minimum wage rates” in Delhi.

The state’s chief secretary has also been asked to make sure that all workers receive their money before 31 October in time to celebrate Diwali.

Meanwhile, in the US, the government of Washington DC has voted to repeal a voter-approved ballot measure that would have required tipped workers to be paid a full minimum wage. The measure required restaurants to raise the minimum wage of tipped employees by US$1.50 each year until 2025, when it would catch up with the US$15 minimum wage paid to non-tipped employees.

Earlier this month though, the initiative was overturned in an emergency vote, after critics on the local council claimed the measure’s wording was misleading. According to Afro.com, it was suggested that those who voted for the move had probably failed to realise they were actually cutting the pay of many workers and placing an undue burden on small businesses.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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The Cabinet in Delhi has restored the minimum wage increase that was scrapped by the Indian High Court in August.

Deputy chief minister Manish Sisodia told the Times of India: "Payment to those who have been directly employed on contract by the Delhi government, boards and corporations at minimum wage rates, or those who have been employed by contractors in various works of the Delhi government, shall continue to receive payments at rates prevailing before August 4."

The decision will see the minimum wages of unskilled workers rise from Rs9,724 (US$132.50) to Rs13,896 (US$189.35) per month, from Rs10,764 (US$146.67) to Rs15,296 (US$208.42) for semi-skilled workers and from Rs11,830 (US$161.20) to Rs16,858 (US$229.71) for skilled workers.

The rates initially came into effect on 1 April 2017, but were subsequently quashed by the High Court. 

Sisodia said the Delhi government would also “compensate the salaries as per the increased rates” of all those whose payment was either deducted or not provided during the two months following the High Court’s order. He claimed that the state government had “all the rights to give an amount above and beyond the minimum wage rates” in Delhi.

The state’s chief secretary has also been asked to make sure that all workers receive their money before 31 October in time to celebrate Diwali.

Meanwhile, in the US, the government of Washington DC has voted to repeal a voter-approved ballot measure that would have required tipped workers to be paid a full minimum wage. The measure required restaurants to raise the minimum wage of tipped employees by US$1.50 each year until 2025, when it would catch up with the US$15 minimum wage paid to non-tipped employees.

Earlier this month though, the initiative was overturned in an emergency vote, after critics on the local council claimed the measure’s wording was misleading. According to Afro.com, it was suggested that those who voted for the move had probably failed to realise they were actually cutting the pay of many workers and placing an undue burden on small businesses.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Key payroll considerations in India

India plans welfare programme for poor

India tightens up on tax evasion

 

 

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