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President Kovind assents Delhi govt’s amendment in Minimum Wages Act; violators to pay fine, get jail term

Updated: May 09, 2018 09:57:10am
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President Kovind assents Delhi govt’s amendment in Minimum Wages Act; violators to pay fine, get jail term

New Delhi, May 9 (KNN) In a move which is likely to put burden on the MSME sector, the employers which violate the minimum wage rule in Delhi will face fine ranging from Rs 20,000-50,000 and jail term between one to three years. President Ram Nath Kovind has given his assent to the Delhi government's proposed Bill to amend the Minimum Wages Act.

Chief Minister Arvind Kejriwal said the amended law will act as a "strong deterrent" against the employers who do not pay full minimum wages.

"Finally, Central Govt gives its approval after several months. This will act as a strong deterrent against those employers who do not pay full min wages. Delhi govt will take strong action against such people," Kejriwal tweeted.

The Department of Law, Justice and Legislative Affairs of the Delhi government has issued a notification stating it is now mandatory for employers to pay remuneration either electronically or through cheques, except in some special circumstances.

In March last year, Lt Governor Anil Baijal had approved the AAP government's proposal to hike the minimum wages of unskilled, semi-skilled and skilled workers by 37 per cent.

The micro, small and medium enterprises from Delhi had been opposing this saying this would increase their cost of production thus making them less competitive as compared to neighbouring states.

For an unskilled worker, the minimum wages is Rs 13,350 per month while for semi-skilled, it is Rs 14,698. The minimum wages for skilled persons is Rs 16,182 in the national capital.

In August last year, the Delhi Assembly had again passed "The Minimum Wages (Delhi) Amendment Act, 2017", after the Centre had suggested the AAP dispensation to re-introduce the Bill with some changes in the Assembly. The first bill was tabled in 2015. (KNN Bureau)

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