How to Calculate Revised Tamilnadu Minimum Wages Basic and DA for the Year 2018 | Labour Law News

How to Calculate Revised Tamilnadu Minimum Wages Basic and DA for the Year 2018

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Minimum Wages Revised Calculation as per GO.No.(2D)No.67  13th November 2017

How to Calculate Revised Tamilnadu Minimum Wages – Basic and DA for FY 2018, Revised Minimum Rate Basic Wages 2018,Tamilnadu Revised Minimum Rate Basic Wages 2018,Latest Revision in Tamilnadu Minimum Basic Wages is 2018 ,Previous Tamilnadu Minimum Basic Wages Revision was 2012,Revision of Minimum rates of wages for Employment in General Engineering and Fabrication Industry

Tamilnadu Government Revised Minimum wages of employees with effect 01st January 2018 onwards vide GO.No.(2D)No.67  13th November 2017 and please find the workings of Calculation Revised Tamilnadu Minimum Wages – Basic and DA for FY 2018.

Minimum Wages Revised Calculation as per GO.No.(2D)No.67  13th November 2017
General Engineering
Basic Calculation
Revision Year Unskilled Semiskilled Skilled
  Zone – A Zone – B Zone – A Zone – B Zone – A Zone – B
2012 123 120 129 125 139 135
2018 258.5 255 266 265 271 273.5
Increase in Basic 136 135 137 140 132 139
DA Calculation
Revision Year Unskilled Semiskilled Skilled
  Zone – A Zone – B Zone – A Zone – B Zone – A Zone – B
2017 208 208 208 208 208 208
2018 163 163 163 163 163 163
Decrease in DA -45 -45 -45 -45 -45 -45
MW Total – 2017 331 328 337 333 347 343
MW Total – 2018 421 418 429 428 434 436
Increase in MW 90 90 92 95 87 93
Before Revision MW(26 Days) 8615 8537 8771 8667 9031 8927
After Revision MW(26 Days) 10956 10865 11151 11125 11281 11346
Increase per Month MW
with effect January 2018
2341 2328 2380 2458 2250 2419
Increase % 27.17 27.27 27.13 28.36 24.91 27.10

Basic Revision considered based on the following as per GO

SKILLED: DAILY

Persons having experience for a period of 5 years in a particular trade or the persons who possess trade certificate including Industrial Training Institute with experience for a period of three years in a particular trade

Minimum            Maximum

278.50                   273.50

SEMI-SKILLED:

(i) All Trade Certificate holders including Industrial Training Institute (Grade-l)

Minimum            Maximum

271.00                   265.00

(ii) Persons who worked as helpers for not less than two years in a particular trade (Grade-II)

Minimum            Maximum

266.00                   262.00

Un-skilled:

Persons doing work which do not require any training

Minimum            Maximum

258.50                   255.00

Explanations.- I. Classification of Zones: Zone–A and Zone-B shall comprise of the following areas:-

Zone-A : All District Head Quarters, Corporations and Municipalities.

Zone-B : Other places

Dearness Allowance based on the GO and considered the following calculations

The employees shall be paid dearness allowance as indicated below:-

The wages notified above are linked to the Average Chennai City Consumer Price Index Number for the year 2010, that is 161 points with base 2001 =100 and for any further raise of every point over and above 161 points, variable dearness allowance shall be paid at the rate of Rs.42.35 (Rupees Forty two and thirty five paise only) per month.

Consumer Price Index – Chennai Region
Month/2017 Base 2001=100 Base 1982= 100 Base 1960 = 100 1935-26 = 100
January 255 1262 6375 30342
February 256 1267 6400 30461
March 253 1252 6325 30104
April 256 1267 6400 30461
May 258 1277 6450 30699
June 263 1302 6575 31294
July 266 1317 6650 31651
August 263 1302 6575 31294
September 261 1292 6525 31056
October 266 1317 6650 31651
November 270 1337 6750 32127
December
(Consider Nov’17)
270 1337 6750 32127
Total 3137 15529 78425 373267
Average 261 1294 6535 31106
Base Year Average Point as per 2010 161
Average CPI for the Year 2017 261
Up to 161 Points No Dearness Allowance
Above 161 Points that is 261-161 – 100 Points
So DA Increase Points 100
DA increase per point Rs.42.35(100X42.35) 4235

Conclusion:

Tamilnadu Government increase the Dearness Allowance during April 2017 from Rs.5196/- to Rs.5417/- as per GO No.Z3/5309/2017 dated 27.03.2017.

Now as per GO. No.(2D)No.67  13th November 2017 Tamilnadu Government decrease the Dearness Allowance from Rs.5,417/- to Rs.4,235/-  .

Reason for DA Decrease:

During April 2017 considered Base Year 1982=100 and average points in 2016 as 1260-475=785 X 6.90 = Rs.5, 417/-.

Now from January 2018 considered Base Year 2001=100 and average points in 2017 as 261-161=100 X 6.90 = Rs.4, 235/-.

Increase in Basic Wages:

During 2012 as per GO Basic wages is revised and after six years now as per GO. No.(2D)No.67  13th November 2017 Tamilnadu Government increase the Basic wages around 102%.

Overall Minimum Wages Increase:

The overall Basic and Dearness Allowance increase with effect from 01st January 2018 as around 27%.

The above calculation considered based on the General Engineering Category and considered 2017 CPI Index Numbers.

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