Here is some content for SME's.
The annual increment is normally granted to the regular & permanent
staff of the company as stipulated in terms of conditions of their
appointment letters or service condtions.This benefit is not avalable
to the contracl labour. I agree with the contention of Sh B.Saikumar
that the minimum wages is revised every six months under the Minimum
Wages Act, which an employer need to comply with.
Rule 25 of the Contract Labour (R&A) (Central) Rules laid down the
terms and condition of licence.The following coditions are important as
regards the employment of the contract labour is concerned.
(i) the rates of wages payable to the workmen by the contractor shall
not be less than the rates prescribed under the Minimum Wages Act,1948
for such employment where applicable, and where the rates have been
fixed by agreement, settlement or award, not less than the rates so
fixed;
(ii) In the cases where the workmen employed by the contractor perform
the same or similar kind of work as the workmen directly employed by the
principal employer of the establishment, the wage rates, holidays,
hours of work and other conditions of service of the workmen of the
contractor shall be the same as applicable to the workman directly
employed by the principal employer of the establishment on the same or
similar kind of work.