Revision of Minimum Rates of Wages for the Employment in Shops and Commercial Establishments, under the Minimum Wages Act
The Tamil Nadu Labour and Employment Department issued G.O. (2D) No. 14, Labour and Employment (J-1), dated 5 March 2019, revising minimum wages for employees in shops and commercial establishments across Tamil Nadu. It took effect on publication in the Tamil Nadu Government Gazette and superseded Labour and Employment Department Notification No. II(2)/LE/472/2013 dated 10 July 2013.
What the notification governs
The Tamil Nadu Labour and Employment Department notification under G.O. (2D) No. 14, Labour and Employment (J-1), dated 5 March 2019, fixes monthly minimum basic wages for listed jobs in shops and commercial establishments throughout Tamil Nadu. It applies from the date of publication in the Tamil Nadu Government Gazette.
The notification affects employers and employees in covered establishments. It does not regulate property ownership or land transactions. A property owner is affected only where the owner also operates a covered shop or commercial establishment and employs workers in the listed categories.
Employees and establishments covered
The wage schedule covers general occupations including managers, accountants, supervisors, clerks, sales staff, cashiers, drivers, security guards, shop assistants, helpers, delivery workers, sweepers and gardeners.
It also lists roles in particular businesses, including:
- Chemist and druggist shops.
- Hair dressing salons and beauty parlours.
- Photo studios and optical shops.
- Watch, radio, bicycle, electrical, light and sound service shops.
- Diagnostic laboratories.
- Chit funds and co-operative societies.
- Boarding houses and lodges.
- Furniture businesses, petrol bunks, warehouses and godowns.
- Lift installation establishments and various repair or manufacturing shops.
General workers in shops and commercial establishments who are outside administrative and clerical work and are not otherwise listed are also covered.
Wage structure and zones
G.O. (2D) No. 14 sets different monthly basic wages according to occupation and location. The listed basic wages range from Rs. 5,218.00 to Rs. 5,960.00 per month.
- Zone A covers all corporations and special grade municipalities.
- Zone B covers municipalities other than special grade municipalities.
- Zone C covers townships, town panchayats and cantonments.
- Zone D covers all other places.
Daily wage rates are calculated by dividing the monthly wage by 26.
Additional protections
The Tamil Nadu Labour and Employment Department requires dearness allowance in addition to basic wages. It is linked to the Chennai City Average Consumer Price Index, with Rs. 32.40 per month added for every point above 161, and is calculated annually on 1 April using the preceding January to December indices.
Employers must also follow these requirements:
- Men and women doing the same work must receive the same wages.
- Existing wages that are higher than the notified minimum must continue to be paid.
- The revised rates replace the earlier notification dated 10 July 2013.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this notification affect me simply because I own a commercial property?
The notification regulates wages in shops and commercial establishments, not property ownership. It is relevant if you operate a covered establishment and employ workers in the listed categories.
Can an employer reduce an employee's existing higher wage to the notified minimum?
No. Where an existing wage is higher than the minimum fixed by the notification, the higher wage must continue to be paid.
Is dearness allowance included in the listed monthly basic wage?
No. Dearness allowance must be paid in addition to the minimum basic wage and is linked to the Chennai City Average Consumer Price Index.
How is the daily minimum wage calculated?
The applicable monthly wage is divided by 26 to arrive at the daily wage rate.
