Lok Sabha Question No. 1357 (UNSTARRED), answered on 2016-07-25
Subject: Minimum Wages for Contract/Casual Workers
Ministry: LABOUR AND EMPLOYMENT
Asked by: KULAMANI SAMAL, PANKAJ CHOWDHARY

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 1357 TO BE ANSWERED ON 25.07.2016

## MINIMUM WAGES FOR CONTRACT/CASUAL WORKERS

1357. DR. KULAMANI SAMAL:

SHRI PANKAJ CHAUDHARY:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)the number of contract and casual workers working in the Central Government,  Public  Sector  Undertakings  during  each  of  the  last three years and the current year, separately, State/UT-wise;
- (b)whether  such  contractual  and  casual  workers  are  being  paid  the minimum wages at the rates fixed according to the nature of work as provided under the Minimum Wages Act, 1948;
- (c)the steps taken by the Government to provide "equal pay for equal work" to such contract and casual workers on the pattern of regular ones;
- (d)the mechanism put in place to ensure payment of minimum wages to the contract and casual workers; and
- (e)whether the Government proposes to regularise the services of the contract/casual workers and also proposes to amend the Minimum Wages Act, 1948 and the Contract Labour (Regulation and Abolition) Act and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a): The  State-wise  number  of  contract  workers  working  in  the Central Government, Public Sector Undertakings in the Central Sphere for the last three years is enclosed as Annexure-A. The data in regard to  contract  workers  engaged  in  the  States  other  than  those  in  the Central Sphere is not centrally maintained.

The data in respect of casual workers in not centrally maintained.

- (b): Yes,  the  contractual  and  casual  workers  are  being  paid  the minimum  wages  covered  under  Scheduled  Employment  at  the  rate fixed according to the nature of work as provided under the Minimum Wages Act, 1948. If minimum wages are not paid to the workers claim applications are filed within the provisions of the Minimum Wages Act before the authority under Minimum Wages Act, 1948.
- (c): Contract  and  Casual  workers  engaged  in  Central  Government Offices  have  the  protection  of  minimum  wages  fixed  under  the Minimum  Wages  Act,  1948.  For  'equal  pay  for  equal  work',  the provision exists under Rule 25(2)(v)(a) of Contract Labour (Regulation &  Abolition) Act, 1970. It stipulates that the contract  workers performing the same or similar kind of work as the regular employee of the establishment the wage rates, holidays, hours of work and other conditions  of  service  of  the  contract  workers  will  be  the  same  as applicable  to  the  regular  employee  of  the  establishment  performing the  same  or  similar  kind  of  work.  In  case  of  any  disagreement  with regard  to  the  type  of  work,  Deputy  Chief  Labour  Commissioner (Central) is an authority under Rule (2)(v)(a) to decide the matter.

As  regards  the  casual  workers,  in  places  where  the  nature  of work  entrusted  to  the  casual  workers  and  regular  employees  is  the same, the casual workers is to be paid at the rate of 1/30 th  of the pay at the minimum of the relevant pay scale plus dearness allowance for work  of  8  hours  a  day.  In  cases  where  the  work  done  by  a  casual worker  is  different  from  the  work  done  by  a  regular  employee,  the casual worker is to be paid only the minimum wages notified by the Territory Administration, whichever is higher, as per the Minimum Wages Act, 1948. However, if a Department was already paying daily wages at a higher rate as on 7 th  June, 1988, the practice could be continued with

Central Government or the State Government/Union the approval of its Financial Advisor.

- (d): A well-established Central Industrial Relations Machinery (CIRM) is  in  place  to  enforce  various  labour  laws  including  the  Minimum Wages Act, 1948. The country-wide CIRM network of Dy. Chief Labour Commissioners and Regional Labour Commissioners under the control of  Chief  Labour  Commissioner  (Central)  is  mandated  to  settle  the complaints/claims  arising  out  of  non-payment  or  payment  of  lower wages.  Besides,  a  grievance  redressal  mechanism  exists  in  the States/UTs  in  respect  of  the  grievances  pertaining  to  establishment coming under the State Sphere.

(e): There is no provision of regularization of the services of contract workers under The Contract Labour (Regulation & Abolition) Act, 1970. Contract  appointment/outsource  of  services  are  governed  by  the detailed  instructions  and  procedures  for  this  purpose  as  per  basic guidelines  contained  in  Rule  178  to  185  of  the  General  Financial Rules(GFRs), 2005.

Making improvements by way of amendments in the provisions of the  Minimum  Wages  Act,  1948  and  the  Contract  Labour  (Regulation and Abolition) Act, 1970 is a continuous process.

*                                                      *******

## State-wise statement showing number of Contract workers

## engaged in Central Sphere

| S.No   | State             | 2013-14   | 2014-15   | 2015-16   |
|--------|-------------------|-----------|-----------|-----------|
| 1      | Andhra Pradesh    | 88059     | 71820     | 58438     |
| 2      | Assam             |           |           |           |
| 3      | Arunachal Pradesh |           |           |           |
| 4      | Manipur           |           |           |           |
| 5      | Tripura           | 168670    | 93034     | 19839     |
| 6      | Sikkim            |           |           |           |
| 7      | Meghalaya         |           |           |           |
| 8      | Nagaland          |           |           |           |
| 9      | Bihar             | 26074     | 25816     | 9536      |
| 10     | Chattisgarh       | 112755    | 127130    | 31748     |
| 11     | Gujarat           | 114093    | 192682    | 185190    |
| 12     | Jarkhand          | 38710     | 24263     | 44505     |
| 13     | karnataka         | 105874    | 138892    | 352700    |
| 14     | Kerela            | 76530     | 135798    | 36626     |
| 15     | Madhya Pradesh    | 134098    | 144884    | 144884    |
| 16     | Maharashtra       | 251628    | 207554    | 260792    |
| 17     | Delhi             | 55190     | 39145     | 78824     |
| 18     | Orissa            | 123345    | 166308    | 23340     |
| 19     | Rajsthan          | 62689     | 90216     | 92612     |
| 20     | Tamil Nadu        | 126932    | 23507     | 35254     |
| 21     | Uttranchal        | 14742     | 17536     | 32089     |
| 22     | Uttar Predesh     | 99775     | 100584    | 112960    |
| 23     | West Bengal       | 94397     | 80376     | 232896    |
| 24     | Himachal Pardesh  |           |           |           |
| 25     | J andK            |           |           | 93639     |
|        |                   | 56584     | 68440     |           |
| 26 27  | Punjab Haryana    |           |           |           |
|        | All India (Total) | 1750145   | 1747985   | 1845872   |

Note: Bold indicated (combined data received from the regions

i.e. Guwahati and Chandigarh)

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