LABOUR LAW

PSDA ASSIGNMENT

By- Tanish Sharma

05019103520

Q- Examine the provisions relating to the fixing the minimum wages under the
Minimum Wages Act, 1948.

Ans-

Section 3 - Fixing of minimum rates of wages

Under Section 3 of the Act, the minimum wages payable to the employees are to be
fixed by the appropriate government. However, this Section also mentions that the
rate of wages shall be revised every five years. The appropriate government may
fix:

1. The minimum rate of wages for time work,

2. the minimum rate of wage for piece work,

3. a minimum rate of remuneration to apply in the case of employees

employed on piece work for the purpose of securing to such employees a
minimum rate of wages on a time work basis,
4. a minimum rate of wage to substitute the for the minimum rate which
would otherwise be applicable, in respect of overtime work done by
employees.
In fixing or revising minimum wages under Section 3 of the Act:

1. Different minimum rates of wages may be fixed for; different classes of

work, different scheduled employment, different localities, different age
groups, etc.
 2. Minimum wages may be fixed by the wage period such as; by the hour,
by the day, etc.

Section 4 - Minimum rate of wages

Section 4 of the Minimum Wages Act, 1948 states that the minimum wages fixed
by the appropriate government must consist of:

1. A basic rate of wages and a special allowance must be adjusted at

necessary intervals by the appropriate government to match the cost of
living of the employees.
2. The cost of living allowance and the cash value of the concessions in
respect of supplies of essential commodities must be computed by a
competent authority and at such intervals specified by the appropriate
government.

Section 5 - Procedure for fixing and revising minimum wages

Section 5 states that in order to fix or revise the minimum wage of the employees
the appropriate government may establish as many committees and subcommittees
necessary to hold enquiries in matters regarding fixing and revision of minimum
wage. Further, the appropriate government by notification to the Official Gazette
publish its proposal for the information of the individuals who are likely to be
affected by such information and thereby specify the date which must not be less
than two months from the date of notification of the proposals that will be taken
into consideration.