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Outsourced workers not govt employees; wage revision under new code: House told

  • Idrees Bukhtiyar By Idrees Bukhtiyar
  • Comments 0
  • 03 Apr 2026

Srinagar, Apr 02: The Jammu and Kashmir government on Thursday clarified that workers engaged through outsourcing under various Centrally and UT-sponsored schemes are contractual and do not qualify as government employees. It added that revision of minimum wages will be undertaken under the provisions of the Code on Wages, 2019.

The clarification was made in the J&K Assembly in response to questions by Uri MLA Dr Sajjad Shafi regarding the nature of these jobs and wage revisions.

Replying on behalf of the Labour and Employment Department, the government said these engagements are made through empanelled third-party service providers as per scheme guidelines and financial rules. “Such engagements do not constitute government posts and do not establish any employer-employee relationship with the government,” the minister said.

The government added that payment of wages and compliance with labour laws is the responsibility of the outsourcing agencies, in accordance with agreements signed with the concerned departments.

Addressing concerns that many of these jobs, mostly clerical and multi-tasking, fall under outdated wage regulations, the government said the Minimum Wages Act, 1948 is no longer applicable in the Union Territory. “Minimum wages are now governed by the Code on Wages, 2019, effective in J&K from November 21, 2025,” the reply stated.

On amending the Minimum Wages Act, the minister said the question “does not arise” as the Act has been replaced by the new Code. Rules for operationalising the Code in J&K are in advanced stages of finalisation. Once notified and after the national floor wage is determined by the Government of India, the UT will examine and revise minimum wages.

“The revision will consider skill categories, nature of employment, geographical factors, and socio-economic parameters,” the reply added. The government also reiterated that compliance with notified minimum wages is mandatory for outsourcing agencies, with enforcement ensured through the Labour Department.

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