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rohit-ghali
I'm from Karnataka. Restaurant owner. I provide food and accommodation to my employees. Can I deduct some percentage from minimum wages? They don't want to eat out. The minimum wages act provides only the wage list everywhere. Nothing found about food and accommodation. But I read somewhere that I can deduct 15% from the minimum wage. Please help. My employees are happy, but the labor inspector is torturing.
From India, Bengaluru
KK!HR
1422

Section 12 of the Minimum Wages Act provides as follows:

12. Payment of minimum rates of wages.- (1) Where in respect of any scheduled employment a notification under section 5 1 is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorized within such time and subject to such conditions as may be prescribed.

So the legal requirement is that the minimum wages notified for the employment in question is to be paid, thus the Labour Inspector is not wrong on insisting for it. But it also says that authorised deductions are permissible. So you need to approach the Labour Commissioner explaining the facts and circumstances and seek authorisation for such deduction. A better alternative could be to approach through the hotel & Restaurant owners association as this will be a common problem faced by others too. Till that time on records compliance of the notified minimum wages is necessary.

From India, Mumbai
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