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CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019

Ramesh works on piece work in a factory in Pune. The Government has fixed a minimum time rate of ₹600 per day for his category but no minimum piece rate. On a particular day, his output at the employer's piece rate yields only ₹450. What is the minimum amount the employer must pay him for that day, assuming he worked the normal day?

The employer must pay ₹600. Since only a minimum time rate of ₹600 per day exists for this piece work, wages cannot be less than that rate, so the shortfall from the ₹450 piece earnings must be made up.

  1. A₹450
  2. B₹525
  3. C₹600Correct
  4. D₹1,050

Explanation

Because only a minimum time rate is fixed, the employer must pay not less than that rate. The piece earnings of ₹450 fall short, so the employer must pay ₹600. ₹525 wrongly averages the two figures, and ₹1,050 wrongly adds them.

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