Adjustment of Minimum Wages for Employees in Chandigarh Based on Cost of Living Index Numbers

The Government of Chandigarh on 06th March, 2024 issued a notification outlining the Consumer Price Index (CPI) and the corresponding increase in minimum wages for employees in Chandigarh for the half-year ending March 2023. 

The half-yearly Cost of Living Index Numbers for industrial workers increased by 72 points from the previous quarter, resulting in an increase of Rs. 504/- per month in the minimum rates of wages for monthly rated employees under the Minimum Wages Act. This led to an adjustment in the minimum wages payable for various categories of employees from 01st April, 2023, to 30th September, 2023. The minimum rates of wages for both monthly and daily rated employees were adjusted based on the increase in the cost of living index numbers.

The minimum rates of wages for different categories of employees, including unskilled, semi-skilled, skilled, highly skilled, and various staff classes, were specified for the period from October 1, 2022, to March 31, 2023, and the subsequent period from April 1, 2023, to September 30, 2023. Additionally, the notification provides detailed definitions for each category of employees, such as unskilled, semi-skilled II, semi-skilled I, skilled II, skilled I, highly skilled, as well as Class III, Class II, and Class I staff. Furthermore, it outlines the adjustments made based on the change in the Cost of Living Index Number and the ratio for adjustment in case an employer provides living accommodation to an employee.

Moreover, the document includes specific notes clarifying the calculation of points based on the Base Year 2001 and Base Year 2016, as well as the categories of employees eligible for adjustments in wages based on the rise or fall in the Cost of Living Index Number. It also addresses the maximum amount that an employer may charge from an employee’s wage in the case of providing living accommodation. The document provides comprehensive definitions for each category of employees to ensure clarity in determining the applicable minimum wages based on the nature of the work performed.