Work and Wages

Minimum Wage

The Labour Advisory Council (the “Council”) can place its recommendations before the Minister for Labour on fixing and revision of minimum wage. Certain factors need to be taken into account such as the basic needs of the employees, the general level of wages, the cost of living, the level of productivity and any other factor which may be considered necessary. Every minimum wage is to be reviewed within a time period of not more than two years. The Council can recommend fixing of different minimum wages for different occupations or categories of employees.

An employer who does not pay the minimum wage, has committed an offence. He/she can be punished with imprisonment of up to five years, a fine, cancellation of a license or closure of premises for up to two years.

 Sources: §50 & 126 of the Labour Act, 2017

Regular Pay

Basic salary means the salary along with the cost living allowance while excluding other allowances. The payment of wages has to be made during working hours at the place of employment or in the bank account of the employee. For employees engaged on an hourly or daily basis, the wages have to be paid by the end of the day. For employees employed for up to one month, the wages have to be paid at the end of each month. For employees engaged for a specific task, the wages are paid on the completion of task.

The employer can make the following deductions from the salary/wages: taxes, rates, subscriptions or contribution provided by law; alimony or child care payments ordered by a court; contribution to a pension scheme; rent for accommodation due to the employer or for price of goods sold by employer to employee (as long as the employee has already given consent); repayment of money lent by the employer to the employee, subject to prior written agreement; an amount of damage suffered by the employer because of the employee; and subscriptions to be paid to the trade union by an employee.

An employer has to pay an employee all wages/salaries and any other benefits to which the employee is entitled within 30 days from the date on which employment of the employee was terminated, regardless of the cause of such termination.

Sources: §5, 49 & 51 of the Labour Act, 2017