Sec5.

Procedure for fixing and revising minimum wages

(1) In fixing minimum rates of wages in respect of any scheduled employment for the first time
under this Act or in revising minimum rates of wages so fixed the appropriate government shall
either -

(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries
and advise it in respect of such fixation or revision as the case may be or

(b) by notification in the Official Gazette publish its proposals for the information of persons
likely to be affected thereby and specify a date not less than two months from the date of the
notification on which the proposals will be taken into consideration.

(2) After considering the advice of the committee or committee appointed under clause (a) of
sub-section (1) or as the case may be all representations received by it before the date specified
in the notification under clause (b) of that sub-section the appropriate government shall by
notification in the Official Gazette fix or as the case may be revise the minimum rates of wages in
respect of each scheduled employment and unless such notification otherwise provides it shall
come into force on the expiry of three months from the date of its issue :

Provided that where the appropriate government proposes to revise the minimum rates of
wages by the mode specified in clause (b) of sub-section (1) the appropriate government shall
consult the Advisory Board also.
 PETITIONER: JAYDIP INDUSTRIES, THANA Vs. RESPONDENT: THE WORKMEN
DATE OF JUDGMENT16/12/1971

ACT:
Industrial Tribunal-Jurisdiction to fix minimum wages at rates higher than those fixed by
government during pendency of industrial dispute-Minimum Wages Act 1948 S. 3(2A).
Industrial dispute-Minimum wages, what is.

HEADNOTE:
During the pendency of an industrial dispute between the appellant and its workmen, arising
out of the demand of the workmen for higher scales of pay, the appropriate government fixed
under section 3 of the Minimum Wages Act, 1948, the minimum rates of wages for the
employees employed in scheduled employments including the appellant's industry. The
tribunal found that the appellant concern was not financially stable. It fixed the minimum
wages at rates higher than the rate fixed by the government.

HELD : (i) Sub-section (2A) of section 3 makes it clear that even after the fixation of minimum
rates of wages by the appropriate government under s. 3 of the Act, it is open to an Industrial
Tribunal adjudicating an industrial dispute relating to wages payable to the employees in a
scheduled employment to fix minimum wages at higher or lower rates, if the dispute was
pending at the time of fixation of minimum ages under s. 3. [924 G]
 PETITIONER: RAM KUMAR MISRA Vs. RESPONDENT: STATE OF BIHAR AND OTHERS
DATE OF JUDGMENT21/09/1983

ACT:
Minimum Wages Act, 1948-Schedule-Entry 27-Scope of- Applicable to employment in ferries
plying across Ganges in Bihar.

HEADNOTE:
The petitioner complained that the workmen employed in the two ferries, one at Bhagalpur and
the other at Sultanganj, operated by respondent No. 5 were not being paid minimum wages as
prescribed by the relevant notifications issued by the State of Bihar under the Minimum Wages
Act, 1948. Respondent No. 5 contended that the Minimum Wages Act was not applicable to
these two ferries.

 HELD: Entry 27 of the Schedule which dealt with employment in shops and establishments
registered under the Bihar Shops and Establishments Act, 1953, was amended on 25.11.1978 to
enlarge its scope to cover employment in any shop or establishment other than that covered
under any of the other entries in the Schedule. Now it can hardly be disputed that the Bhagalpur
and Sultanganj ferries are establishments which carry on business or trade of plying ferries
across the Ganges and they are clearly within the meaning of the word "establishment" in sec.
2(6) of the Bihar Shops and Establishments Act, 1953 and consequently they would also be
establishments within the meaning . It accordingly reach the conclusion that the workmen
employed in the Bhagalpur and Sultanganj ferries were entitled to receive minimum wage
 PETITIONER: HYDRO (ENGINEERS) PVT. LTD. Vs. RESPONDENT: THE WORKMEN
DATE OF JUDGMENT: 30/04/1968

ACT:
Industrial Dispute-Minimum Wage-Principle for fixation of- Revision of scale of wages fixed by
the previous award by linking up with cost of living index-If double advantage to workmen-
Retrospective operation of award-Whether valid-What is reasonable qualifying period for
gratuity.

HEADNOTE:
There were industrial disputes between the. appellant and its workmen, the respondents, which
were the subject-matter of awards. The last of such awards fixed revised wage scales taking into
consideration the cost of living index then prevailing. It also provided for annual increments but
rejected the workmen's demand to link up -the wage scales with the index of cost of living. After
the respondents had received two annual increments under that award, they served a notice on
the appellant calling ,for revision of the scale of wages and of the gratuity scheme.

HELD: The award retained the scales fixed in, the previous award and treating them as- based on
the cost of living index prevailing on the date ,of that award, directed that the wages should be
linked up with the cost of living index. The award also directed that effect should be given to it
retrospectively from approximately the date of demand by the respondents.
 PETITIONER: U. UNICHOYI AND OTHERS Vs. RESPONDENT: THE STATE OF KERALA
DATE OF JUDGMENT:14/04/1961

ACT:
Minimum Wages-Notification fixing wage structure-Capacity of employer to pay, if relevant
consideration-Minimum Wages Act, 1948 Sec 3(3),5.

HEADNOTE:
The petitioners, representing certain tile factories, challenged the validity of the Minimum
Wages Act, 1948, as also the notification issued by the Kerala Government prescribing minimum
rates of wages in respect of employment in the tile industry on the report of a committee
constituted under the Act and consisting of the representatives both of the employers and
employees who agreed with its recommendations.  The case of the petitioners was that the
notification had in effect fixed not minimum wages but fair wages and since neither the
committee nor the Government in fixing them had considered the capacity of the employers to
pay, the notification was void

Held, that in view of the decisions of this Court the con- stitutional validity of the Act could no
longer be in doubt and any hardship that may be caused to employers by the wages fixed under
the Act or their incapacity to pay the same are irrelevant considerations in fixing such wages
1989
SUPPREME COURT OF INDIA
Hon'ble Mr. D.P. Wadhwa, J.
Hon'ble Mr. M.B. Shah, J.
Decided on 4.8.1999
Airfreight Ltd.
Vs.
State of Karnataka & Others

A.                 MINIMUM WAGES ACT - Sections 3 and 5 - Notification dated 19.8.1987 extending
Act to shops and commercial establishments in Karnataka State by Karnataka Govt.- Payment
of pay more than minimum wages would not exclude an establishment from purview of the
Act.

HELD.The Notification is made applicable to all shops and commercial establishments in the
State of Karnataka where the State has found that the labor was unorganized or that wages
paid to the workers were below minimum wages.  Hence the plea that the Company is paying
more than minimum wages (as alleged) the notification under the Act would not be applicable
to it has no force