Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-148
Minimum wage of Rs. 15,000/= p.m. of Unskilled Adult and Juvenile Workers in K.P.K.
By Notification dated 9-9-2014 u/s 8(1) of the Khyber Pakhtunkhwa Minimum Wages Act, 2013 published on 16-9-2014 in the KPK Govt. Gazette has fixed the minimum rate of wages as Rs. 15,000/= per month in respect unskilled and juvenile workers working in the Industrial and commercial establishments in the province of KPK w.e.f 1-7-2014. Salient features of the same are given as under:–
1- That the minimum wage of adult and juvenile unskilled workers, both male and female, temporary or permanent are to be paid the minimum wage at the rate of Rs. 15,000/= p.m. w.e.f. 01-07-2014 for whole time daily 8 hours of work as defined by the Section 2(XV) of the K.P.K. Minimum Wages Act, 2013.
2- The wages of apprentices shall be regulated as provided by the Apprentice-ship Ordinance, 1962.
3- The daily minimum wage for piece rated workers would be 1/26th of the monthly minimum wage amounting to Rs. 576.93 per day which would proportionately include element of minimum wage for weekly holidays in it and, therefore, no separate payment for weekly off days would be required. Overtime, daily/weekly working hours, weekly rest days, work on weekly holidays, etc shall be governed by provisions of the K.P. Factories Act, 2013, K.P. Payment of Wages Act, 2013 and other relevant labour laws.
4- Wages of skilled and semiskilled workers may be fixed by employers but the same cannot be less than the minimum wages fixed now for unskilled and juvenile workers.
5- Usually piece rated workers are in skilled and semi-skilled categories and their piece rate wages are so fixed that they get higher wages than the unskilled workers. If any piece rate worker due to nature of his work falls in the Category of unskilled Worker, his piece rate wage be so fixed that he is paid this Minimum wage.
6- If any establishment is paying higher than this minimum wage, the same cannot be reduced. The employer is free to pay higher wage voluntarily or by collective agreement keeping in view various factors including high cost of living in a particular locality or for other reasons.
7- The minimum wage would apply to the permanent, temporary, whole time, monthly rated, daily rated and piece rated unskilled workers and if their wages are above this minimum rate of wage, the same cannot be reduced. They shall continue to enjoy existing other benefits given to them and the same shall not be adjusted against this minimum wage
8- The workers shall continue to enjoy such facilities as house rent allowance or free house, electricity, water, conveyance, free medical aid, gratuity, bonus, pension, any form of insurance, provident fund, recreation, subsidized food, education, holidays and leave with pay, attendance allowance, and any other benefit already provided by the employer. No variable or incentive allowance (non-statutory) or value of welfare facilities as mentioned therein shall be adjusted against this minimum wage.
9- The notification has been issued perhaps in a hurry without fully realising all its legal and other aspects in view. For example its Clause 7 also mentions that the workers shall continue to enjoy facilities of house rent allowance, attendance allowance or free house, electricity, water or conveyance, etc which are not part of this minimum wage. Some of these allowances are paid at monthly rates which were treated as part of the minimum wage in the past but the same have been excluded from the minimum wage now fixed thereby making the minimum wage so high that small units and many employers would not be able to pay which would create complications and problems.
For further details if required, you may consult your labour laws consultant.
For M/s S. M. Yaqoob