CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019
Sunita is employed by a firm on piece work. For packing work, a minimum time rate of ₹80 per hour applies and no minimum piece rate exists. For loading work, a different minimum rate of ₹100 per hour applies. She spends 3 hours packing and 2 hours loading in a day, and her piece earnings for the packing portion are ₹150. Applying the Code, what is the minimum total wage for the day?
The minimum is ₹440. Packing must be paid at the time rate of 3 × ₹80 = ₹240 because piece earnings are lower, and loading at 2 × ₹100 = ₹200, since each class of work needs at least its own minimum rate.
- A₹440Correct
- B₹350
- C₹360
- D₹500
Explanation
For packing, the piece earnings of ₹150 are below the minimum time rate, so the employer pays 3 × ₹80 = ₹240 (Section 12). For loading, 2 × ₹100 = ₹200 (Section 11, each class at its own minimum rate). Total = ₹440. ₹350 wrongly uses ₹150 for packing.
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