Cir 1712

Sub:- CONTRACTS – Revision of wages of Contract Labour – Payment of Minimum Wages to the Labour engaged by the Contractors – Reg.

3) Notification No.170, dated 19.03.2012 of Secy. to Govt. LET&F Department, Hyderabad published in the AP Gazette.

The Corporation is entrusting various works to private contractors on work contract basis. It is mandatory for the Contractors to pay not less than minimum wages to the labour engaged by them as notified by the Government from time to time, and as the “Principal Employer” the Corporation is obligated to ensure payment of such minimum wages.

Instructions have been issued in this regard from time to time advising the Unit Officers to ensure payment of Minimum Wages to the Contract Labour engaged by the Contractors. Vide ref 2^nd cited the rates of wages payable to the Contract Labour w.e.f. 18.08.2009 were communicated.

The Secretary to Government, LET&F Department, AP, Hyderabad, through the Notification 3^rd cited, published in the AP Gazette, has revised the minimum wages payable to the Contract Labour engaged by the contractors. As per the notification issued, the Contract Labour are to be paid cost of living allowance in addition to the Basic wages. The wages which include the cost of living allowance are furnished hereunder:

SL No	Category	Existing Wage Per month Rs.	Revised Wage Per month Rs.
1	Un-Skilled Worker	4030/-	5821/-
2	Semi-Skilled Worker	5070/-	6865/-
3	Skilled Worker	6110/-	8430/-

All the Contract labour engaged in maintenance contracts, sweeping and Washing of buses, maintenance of Garriage yards and other Units, maintenance of Bus Stations and other Contracts in the Corporation are entitled for the wages notified above.

The Contract Labour engaged in maintenance of toilets in Bus Stations, Depots and other Units shall be paid the following wages.

The wages shall be paid proportionately to the part time workers engaged in cleaning of toilets, based on the hours of work done in a day.

The Employees’ Provident Fund Scheme, 1952 envisages that where an employee is already a member of the Fund and his/her monthly pay exceeds Rs. 6500/- subsequently, the contribution payable by the employee and employer shall be limited to the amounts payable on a monthly pay of Rs. 6500/-.

Since the wages payable to the Semi skilled and Skilled category and the wages payable to the category of Safai Karamcharis, exceed Rs. 6500/- per month, the employer and employee contributions have to be restricted to the amounts payable on a monthly pay of Rs. 6500/-. Therefore, all the Unit Officers are advised to fix the Contract amounts accordingly.

The Contract Labour shall be paid Wages as mentioned above wef 01.06.2012. All the Unit Officers are, therefore, advised to ensure that the Contractor pays not less than the above revised minimum wages to the Contract Labour engaged by them every month. The existing contractors also have to pay not less than the above revised minimum wages to the Contract labour engaged by them w.e.f. 01.06.2012 for the remaining period of their contracts and to that extent revised agreements are to be entered into with such contractors.

As it is mandatory on the part of the work contractor, to pay minimum wages to the Labour engaged by him/her as notified by the Govt. from time to time, the Unit Officers shall ensure that the Contractor pays minimum wages by way of cheque or by crediting the wages to the Bank Account of the concerned workers invariably. Where Banking facilities are not available, the Contractor can pay wages in cash and in such cases a representative of the Corporation in the rank of Supervisor should witness payment of Minimum Wages to the Contract Labour and should maintain a record to this effect.

Copy to: PO(Trg):HO, for inclusion in monthly index of Circulars (4 copies).

Office of the Managing Director,