To ensure minimum living standards above poverty line all the state governments has fixed
a minimum wage rate to the all categories of employees. Rate will be depends on the living cost of the state .And the increase or decrease in minimum wages will be decided by the state governments vide their Gazette Notifications. Further divided the categories in to unskilled, semi skilled and skilled. This three categories are applicable for all business sectors.
Any principle employer, either they may hiring the staff directly or through outsourcing agencies , they shall be liable to pay the minimum wages and as per applicable laws. Applicable charges are as under : ESIC -EPF -Bonus -Gratuity -Leave & Holiday Wages -Reliever Charges Uniform Charges - Service Charges -Service Tax .
Any deviations in above may leads to attract legal bodies. And the penal charges will be paid by the principle employer. If the Principle employer is paying as per law and if not paid by the agency , then agency will be responsible for all penal charges.
Apart from the legal compliance if we take human psychology in to consideration. All are well aware of their entitlements. Due to temporary need they may accept to work even with less wages , but it is very true that , they will not deliver the complete job. We shall Always have the command and control if we follow the minimum wage act. .