Mumbai, July 26 (KNN) Not very happy with the Maharashtra Government’s decision of doubling minimum wages of workers employed in shops and establishments across the state, MSME entrepreneurs believe that the move will lead to corruption and retrenchment.

While Speaking to KNN India, Past President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Dinesh Tripathi, a Mumbai based MSME entrepreneur, is of the view that doubling of minimum wage will lead to recession.

Tripathi said the move will further lead to corruption and retrenchment and will not have a good impact on MSMEs.

“The government has not discussed with stakeholders that would be paying these salaries as I consider such dictate as draconian, unilateral, biased, irrational, illegal as such I raise my objection," said Bankim D Mistry, President of Bombay Small Scale Industries Association.

According to the Labour Minister Sanjay Kute, the move will benefit nearly one crore workers employed in 10 lakh shops and establishments in the state in 67 different types of employment, said Sanjay Kute, Labour Minister.

As per clause III of the Minimum Wages Act, 1948, the minimum wages are revised after every five years.

However, they were not revised in the last nine years due to technical reasons, said Labour Minister while talking to the reporters.

According to him, in all the municipal corporation limits and in the industrial areas within 20 kms distance of the civic bodies' jurisdiction, skilled workers will get Rs 11,632 minimum wages as against the existing Rs 5,800. Semi-skilled workers will get Rs 10,021 as against Rs 5,000, he said.

In the municipal council limits, skilled workers will get Rs 11,036 as against Rs 5,500, while semi-skilled workers will get Rs 9,425 as against the existing Rs 4,700, he added.

In the rest of the state (excluding areas under municipal corporation and council), the skilled workers will get Rs 10,440 as against Rs 5,200 and the unskilled ones will get Rs 8,828 as against Rs 4,400, Kute said.

The decision comes into effect from July 24, he added.