Kerala Government notifies minimum wages for IT industry

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Trivandrum: In a first of its kind initiative, the Labour Commissionerate under the Department of Labour & Rehabilitation, Government of Kerala has notified the minimum wages for workers in the Computer Software industry. The Gazette notification, as per G. O. (Ms) No. 111/2011/LBR dated August 09, 2011 is published as per the provisions of the Minimum Wages Act, 1948 and is in force since August 22.

According to officials at the Minimum Wage Advisory Board, this is probably the first time that any State government would have come out with minimum wages for the IT industry and this is the first time that Kerala is also bringing out such a notification for this industry. Similar notification has also been issued for workers employed in the operation of Software systems, Electronics industry and Export Processing Zones.

The minimum wages have been fixed in consultation with the Management of IT Companies, Trade bodies and Staff Unions after considering the objections and suggestions received on the draft proposal previously published in January this year. The notification provides for protection for higher wages in case the employees of any establishment are at present getting higher wages than the minimum wages fixed as per this notification as they will be entitled to get such higher rates. The IT sector has been classified under eight categories with the monthly basic wages starting from Rs.4,480 to Rs.9,785 for different posts. In addition to the basic rate of wages, the employees are eligible for Dearness Allowance. The employees, who have completed not less than five years of continuous service in an establishment or under an employer, are allowed service weightage.

Shibu Baby John, Labour Minister said, “This is just a guideline and I am sure most established companies are paying almost ten times the minimum wages prescribed for the industry. It’s only the SME segment that we are concerned with as they are more unorganized and there are chances of exploitation of employees.” The statutory minimum wage has the force of law and it becomes obligatory on the part of the employers not to pay below the prescribed minimum wage to its employees.  Till now, the Department has notified the minimum wages for 73 different sectors / industries in Kerala.

Click here to access the minimum wages notification for the Computer Software industry.

Anil Philip
Kerala IT News

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