Minimum wages act,1948

Minimum Wages
Act,1948
By: Himani Soni

Introduction
• Minimum wage is the one which provides not
merely for bare sustenance of life, but also the
preservations of the efficiency of the worker.
• The minimum wage fixing machinery convention
was held at Geneva during 1928 and the resolution
of that was embodied in articles 223 to 228 of the
international labour code to represent fixation of
minimum wages in the case of trades or parts of
trades where such bonds are absent or wages are
exceptionally low.

Introduction
• The aim of these act is to prevent exploitation
of labour in industries.
• This act does not define the concept of
minimum wages but empowers the central
government as well as state governments to fix
minimum wages from time to time.

Definitions
• Adolescent[Section 2(a)]:‘Adolescent’ means a
person who has completed his 14th year of age
but has not completed his 18th year.
• Adult[Section 2(aa)]:‘Adult’ means a person who
has completed his 18th year of age.
• Appropriate Government[Section 2(b)]:
(i) Any scheduled employment carried on by or
under the authority of the Central Government or
a railway administration, or in relation to a mine,
oilfield or major port, or any corporation
established by a Central Act,
(ii) in relation to any other scheduled
employment, the State Government

Definitions
• Child[Section 2(bb)]:
"child" means a person who has not completed his
fourteenth year of age.
• Competent authority[section 2(c)]:
"competent authority" means the authority
appointed by the appropriate Government by
notification in its Official Gazette to ascertain
from time to time the cost of living index number
applicable to the employees employed in the
scheduled employments specified in such
notification.

Definitions
• Employer means any person who employs one
or more employees in any schedule of
employment.
• Wages means all remuneration capable of
being expressed in terms of money.
• Employee means any person employed for
hire or reward and includes an out worker.

Objectives of the Act.
1. To provide minimum wages for scheduled
employments.
2. To provide for maximum daily working hours,
weekly rest and overtime.
3. To promote the welfare of workers by fixing
minimum rates of wages in certain industries
where labour is not organised and sweated
labour is most prevalent.
4. To prevent exploitation of workers by ensuring
that they are paid the minimum wages, which
would provide for their subsistence and preserve
their efficiency.

The appropriate Government.
FIXATION AND REVISION OF
MINIMUM WAGES
• Shall fix minimum rates of wages for an employment
specified in Part I or Part II of Schedule & added
by notification in official gazette.
• May fix rates for a part of the state or for any
specific class or classes instead of fixing minimum
rate of wages for whole state.
• Shall review and revise at intervals not exceeding 5
years the minimum rates of wages.

Minimum time rates
[Section-3(2)]
• A minimum time rate
• A minimum piece rate
• A Guaranteed rate
• A Over time rate

Different minimum rates
[sec.-3(3)]
• It may be fixed by any one or more the
following wages period,
By the Hour
By the Day
By the Month
By such other larger wage period
• As may be prescribed and where such rates are
fixed by the day or by the month the manner of
calculating wages for a month or for a day, as
the case may be indicated

Minimum rates of wages (sec.-4)
1. Basic + Special allowance (Which varies
with the cost of living index).
2. Basic + Cash value of concessional supply
of materials like food, clothes, etc.
3. An all inclusive rate which includes Basic +
Cost of living allowances + Cash values of
Concessional supply of material.

Fixing minimum rates of wages
[Sec.-5]
• Publish its proposals in the official gazette asking
comments from the affected parties.
• Constitute committees/ sub committees for the
purpose.
• The committees/sub-committees and advisory
boards constituted by the Government consist of
equal number of member of:
Employers
Employees and
Independent persons.

Notification of Minimum Wages
Hearing of the Representatives
Public recommendations in national publications [for public
comments/representations from trade unions etc.]
Recommendation of Advisory Board for different class [Unskilled, skilled,
Clerk, Supervisor]

Advisory Board[Sec.-7]
• Appointed by appropriate
government.
• To co-ordinate the work of
committees and sub committees
appointed under section 5.

• To advise the central and state Governments
in fixation and revision of minimum rates of
wages.
• To co-ordinate the work of the advisory
boards.

Composition of Committees,
etc.[Section 9]
Each of the committee, sub-committee and the
advisory board shall consist of:
a. Persons to be nominated by the appropriate
government.
b. Representing the employers and employees in
the scheduled employments who shall be equal in
number and
c. Independent persons not exceeding one-third of
its total number of members: one of such
independent persons shall be appointed the
chairman by the appropriate government.

Correction of Errors [ Sec.-10]
• By appropriate government at any time.
• By notification in the official gazette.
• Correct clerical or arithmetical mistakes or
errors arising from and accidental slip or
omission.
• Every such notification shall be placed before
the advisory board for information.

Wages in Kind [Secction-11]
• Minimum wages shall be paid in cash.
• The appropriate government may authorize,
where there has been a custom of payment of
minimum wages either wholly or partly in
kind.
• The appropriate government may authorize
supply of essential commodities at
concessional rates.

Payment Of Minimum Rate Of
Wages[section 12]
• The minimum wages has to be paid without
any deductions other than statutory
deductions.
• Payment of wages less the minimum wages
on the ground of less performance or outputs
is illegal.

Normal working hours[sec. 13]
For and adult worker working in factories:
• Number of working hours should not exceed
48 hours in a week with a weekly holiday.
• The daily hours should not exceed more than 9
hours with 1 hour rest interval.
• Provision of compensatory holiday/overtime
wages if working on holiday.

Overtime wages [Section 14]
• If the person has worked for more than 48
hours in a week then, the excess hours
worked will be treated as overtime.
• Overtime wage rate will be twice of the
normal wage rate.

Wages for a person who has worked less
than normal working hours [Section 15]
• Employer could not provide the activities
of the job then, the employee is entitled
to receive full salary.
• Employee has not worked due to his
unwillingness then, the employee is not
entitled to receive full salary.

Wages for two or more classes of
work [Sec.-16]
• Where an employee does two or more classes
of work to each of which a different minimum
rate of wages is applicable.
• The employer shall pay to such employee in
respect of the time respectively occupied in
each such class of work, wages at not less than
the minimum rate in force in respect of each
such class.

Minimum time rate wages for
piece work [Section-17]
• Where an employee employed on piece work
for which minimum time rate and not a
minimum piece rate has been fixed under this
act.
• The employer shall pay to such employee
wages at not less than the minimum time rate.

Records to be maintained
[Section 18]
The registers should contain the following
particulars-
I. Particulars of employed persons
II. The work performed by them
III. The wages paid to them
IV. He receipts given by them

Claims [Section 20]
• A labour commissioner or any other
appointed authority is authorized to hear
claims regarding non-payment of minimum
wages.
• Any aggrieved person may apply to the
authority for setting his claims within 6
months.

Penalties [Section 22]
• Offence: Payment of less than minimum
wages to employee.
• Punishment: Imprisonment which may
extend up to 6 months or fine which may
extend up to ₹ 500/- or Both.

Minimum wages act,1948

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