The Minimum Wages Act of 1948 aims to promote the welfare of workers through fixing minimum wage rates, preventing exploitation, and ensuring subsistence and work efficiency. It applies to scheduled employments across India and covers over 300 industries. Appropriate governments are empowered to extend coverage as needed. Minimum wages are determined through committees and include basic pay with allowances for cost of living. Payment must be at least the minimum rate without unauthorized deductions.
The Minimum Wages Act of 1948 aims to promote the welfare of workers through fixing minimum wage rates, preventing exploitation, and ensuring subsistence and work efficiency. It applies to scheduled employments across India and covers over 300 industries. Appropriate governments are empowered to extend coverage as needed. Minimum wages are determined through committees and include basic pay with allowances for cost of living. Payment must be at least the minimum rate without unauthorized deductions.
The Minimum Wages Act of 1948 aims to promote the welfare of workers through fixing minimum wage rates, preventing exploitation, and ensuring subsistence and work efficiency. It applies to scheduled employments across India and covers over 300 industries. Appropriate governments are empowered to extend coverage as needed. Minimum wages are determined through committees and include basic pay with allowances for cost of living. Payment must be at least the minimum rate without unauthorized deductions.
principles of equity and social justice. Its underlying idea is that “ he who works is entitled to a fair remuneration, which may enable him to live a life consistent with human dignity”.
The object of the Act is to promote the welfare of workers
by fixing minimum rates of wages in certain industries where labour is not organized and sweated labour is most prevalent.
The act seeks to prevent exploitation of workers by
ensuring that they are paid the minimum wages, which would provide for their subsistence and preserve their efficiency. Scope and coverage of the act
The act applies to the whole of India.
Initially it applied to agricultural employment and 12 other employments as mentioned in the Schedule to the Act. The appropriate Governments is empowered to extend this Act to any other employment in respect of which it is of the opinion that minimum rates of wages should be fixed under the Act, the result that now the act covers more than three hundred employments Scheduled employments (sec 2(g) and Sec 27) -PART I • Employment in any woolen carpet making or shawl weaving establishment •Employment in any rice mill, flour mill or dal mill. •Employment in any tobacco manufacture •Employment in any plantation •Employment in the construction or maintenance of roads or in building operations •Employment in any tannery or any other leather manufacture •Employment in any oil mill •Employment in any local authority •Employment in any stone breaking or stone crushing establishment •Employment in any mica works •Employment in lace manufactory •Employment in any public motor trasport establishment. PART II
Employment in agriculture, that is to say, in any
form of farming, including the cultivation and tillage of the sol, dairy farming, the production, cultivation, growing and harvesting of any agricultural or horticultural commodity, raising of livestock, bees and poultry and any practice performed by farmer or on a farm as incidental to or in conjunction with farm operation. Employment in cleaning and sorting of onions and other incidental work. Wages : Wages means all remuneration, capable of being expressed in terms of money which would, if terms or contract of employment, expressed or implied were fulfilled be payable to a person employed, in respect of his employment or of work done n such employment. It includes house rent allowance, but does not include the value of a) any house accommodation, supply of light, water medical attendance (or) b) any other amenity or any service excluded by general or special order of the appropriate government. Wages do not include any contribution paid by employer to any pension fund or provident fund under any scheme of social insurance. Fixation and Revision of Minimum Wages The appropriate government may fix the minimum rates of wages payable to the employees of the scheduled employment, either for the whole State or a part of the State or for any specified class or classes of such employment. Minimum rates of wages may be fixed, both for time- rated and piece rated workers ; and also for over-time work. The minimum wages so fixed may be reviewed at such intervals as the Government may think fit; such intervals not exceeding five years. In fixing or revising minimum rates of wages, different rates may be fixed for – different scheduled employments, different classes of work in the same scheduled employment, adults,adolescents, children, apprentices and different localities. The appropriate government may refrain from fixing minimum rates of wages in respect of any scheduled employment, in which there are in the whole state, less than one thousand employees in such employment. But if, at any time, the appropriate government comes to find after an enquiry that the number of employees in any individual employment has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in such employment as soon as after such finding. Minimum rates of wages Minimum rates of wages fixed and revised under this Act may consist of : • A basic rate of wages and a special allowance as a rate to be adjusted to variation in the cost of living index applicable to such workers at such intervals and in such manner as the Government may direct, • A basic rate of wages with or without the cost of living allowance, and the cash value of the concession, in respect of supplies of essential commodities at concession rates where so authorised or • An all-inclusive rate, allowing for the basic rate, the cost of living allowance, the cash value of the concession if any, the cost of living allowance and cash value of the concession shall be computed by a competent authority at such intervals and according to such direction as may be given by the appropriate government. Procedure for fixing and Revising Minimum Wages Minimum rates of wages, in respect of any scheduled employment, can be fixed or revised by the appropriate Government in either of two methods , a) it shall 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 it shall , by notification in the Official Gazette, publish its proposal for the information of the persons likely to be affected thereby, and specify a date, not less than two months from the date of notification, on which the proposal will be taken into consideration. After considering the advice of the committee or committees or all representations received by it before the date specified in the notification, the appropriate Government, by notification in the official Gazette, shall fix or revise the minimum rates of wages in respect of each scheduled employment. The fixation or revision shall come into force on the expiry of three months from the date of issue of notification, unless otherwise directed. •Where the appropriate government proposes to revise the minimum rates of wages by notification, it shall also consult the Advisory Board appointed under sec.7 of the Act. Before the Government fixes the revised minimum rates of wages, it shall take into consideration representation received by it. Time must be specified for making representation.
• consultation with the Advisory Board is obligatory for
revision of minimum wages and not initial fixation.
•If no advice is given by the committee, or if inadequate
advice is given, sec.5 does not deprive the appropriate Government of its power and duty to fix or revise the minimum rate of wages. ADVISORY BOARD
For the purpose of coordinating the work of committees and sub-
committees appointed under sec.5 of the Act, and advising the appropriate Government generally in the matter of fixing and revising minimum rates of wages, the appropriate Government shall appoint an Advisory Board to function. Composition of committees and Advisory Board : Each of the committee, sub-committee, and the Advisory Board shall consist of persons to be nominated by the appropriate Government, representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members. One of the independent person shall be appointed as the chairman by the appropriate government. Central Advisory Board (Sec.8)
The Central Government shall appoint a Central Advisory Board
a. For the purpose of advising the Central and State Governments in the matter of fixing and revising minimum rates of wages and the matters under the Act, b. For coordinating the work of the Advisory Boards it shall consist of persons nominated by the Central Government representing employers and employees in the scheduled employments, who shall be in equal in number, and independent persons, not exceeding one-third of its total number of members. One of the independent persons shall be appointed as the Chairman of the Board by the Central Government. Payment of Minimum Rates of Wages
• Where in respect of any scheduled employment,
minimum wages have been fixed; the employer shall pay to every employee, wages at a rate not less than the minimum rate of wages fixed for that class of employees in the employment.
• Such wages shall be paid without any deduction,
except as may be authorized. Fixing of Hours for a Normal working Day Where minimum rates of wages have been fixed in regard to any scheduled employment, the appropriate government may ; i. Fix the number of hours of work, which constitute a normal working day, inclusive of one or more specified intervals ii. Provide for a day of rest in every period of seven days and for payment of remuneration in respect of such days of rest. iii.Provide for payment for work on a day of rest at a rate not less than overtime rate. In relation to the following class of employees, the above provisions shall apply to such extent and subject to such conditions as may be prescribed : i. Employees engaged in urgent work or in any emergency, which could not have been foreseen and prevented ii. Employees engaged in the nature of preparatory or complementary work, which must necessarily be carried on outside the limits laid down for the general working in the employment concerned. iii. Employees whose employment is essentially intermittent iv. Employees engaged in any work, which for technical reasons, has to be completed before the duty is over v. Employees engaged in any work, which could not be carried on, except at times, dependent on the irregular action of natural forces. Rates of Overtime Where an employee, whose minimum rate of wages has been fixed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour, or for part of an hour so worked in excess, at the overtime rate fixed under this Act, or under any law of the appropriate government for the time being in force, whichever is higher. Where a worker works in an employment for more than nine hours on any day or for more than 48 hours in any week, he shall, in respect of such overtime work, be entitled to wages at double the ordinary rate of wages. • Wages of workers who work for less than normal working days where an employee whose minimum rates of wages has been fixed under this Act by the day works on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day, he shall be entitled to receive wages in respect of work done by him on that day, as if he had worked for a full normal working day. • However he is not entitled for a full normal working day in the following cases : 1.in any case, where his failure to work was caused by his unwillingness and not by the omission of the employer to provide him with work. 2.in other such cases and circumstances ass may be prescribed. Minimum Time rate Wages for Piece Work Where an employee is employed on piece work for which minimum time rate and not minimum piece rate has been fixed under the Act, the employer shall pay to such an employee, wages at not less than the minimum time rate. REGISTERS AND RECORDS : a. every employer shall maintain such registers and records giving such particulars of employees employed b him, the work performed by them, the wages paid to them, the receipt given by them and such other particulars and in such forms as may be prescribed. b. Every employer shall keep the notices exhibited in such factory, workshop or place as may be used for giving out work to them, c. The appropriate government may, by rules made under the Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed. Enforcement of the Act Inspectors : By notification in the Official Gazette, the appropriate government may appoint inspectors, and define the local limits within which they shall exercise their functions. The inspectors have to see that the provisions of the Act are complied with, for this, inspectors are empowered to : 1. enter all reasonable hours, with such assistance they may think fit, any premises or place where employees are employed, in respect of which minimum rates of wages have been fixed, for the purpose of examining any register, record of wages, or notice required to be kept or exhibited by or under this act, or rules made thereunder, and require the production thereof for inspection. 2.examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is an employee. 3.require any person given out work or any worker to give any information, which is in his power to give, with respect to other persons and for whom the work is given or received , and with respect to the payment to be made for work; 4.seize or take copies of such register, record of wages or notices as he may consider relevant, in respect of any offence under this Act, which he has reason to believe has been committed by an employer. 5.exercise such other powers as may be prescribed Claims The appropriate government, may by notification in Official Gazette, appoint an authority to hear and decide for any specified area all claims: a. arising out of payment of less than the minimum rates of wages, or b. For work done on days or rest, or c. In respect of wages at the overtime rate to employees employed or paid in that area. Authority for hearing and deciding claims : i. any commissioner for workmen's compensation ii. any officer of the Central Government exercising functions as Labour Commissioner for any region iii. any officer of the State Government not below the rank of Labour Commissioner Iv. an other officer with an experience as a judge of a Civil Court or as a stipendiary magistrate Who may apply ? Where an employee has any claim, any of the following may apply to the authority for hearing and deciding the case a. the employee himself or b. any legal practitioner c. any official of a registered trade union, authorized in writing to an act on his behalf d. any inspector or e. any person acting with the permission of the authority. Every such application shall be presented within six months from the date of which the minimum wages and other amounts become payable. It may be admitted after six months, when the applicant satisfies the authority that he had sufficient cause for not making the application within such period. Amount of Compensation
When an application is entertained, the authority shall hear the
applicant and the employer, or give them opportunity to be heard. After such further inquiry, if any, as it may consider necessary, may direct, without prejudice to any other penalty to which employer may be liable under this Act, i. in case of claim arising out of payment of less than the minimum rates of wages, payment to employee of the amount by which the minimum wages payable to him exceed the amount actually paid, together with the payment of such compensation as the authority may think fit not exceeding ten times the amount of such excess. ii.in any other case, the payment of the amount due to employee, together with the payment of such compensation as the authority may think fit, not exceeding ten rupees. The authority may direct payment of such compensation in cases where the excess or the amount due, is paid by the employer to the employee before the disposal of the application. Iii. If the authority is satisfied while hearing the application that it was either malicious or vexatious, it may direct the applicant to pay to the employer a penalty not exceeding Rs.50 iv. any amount directed to be paid , may be recovered by the authority as if it were fine imposed by the authority as a magistrate. v. every direction of the authority under sec.20 shall be final vi. the authority shall have all powers of the civil court under the code of civil procedure 1908 for the purpose of taking evidence, enforcing the attendance of witness, and compelling the production of documents Single application of a Number of Employees
A single application may be presented on behalf
of or in respect of any number of employees in the scheduled employment in respect of which minimum rates of wages have been fixed. In such cases maximum compensation which may be awarded shall not exceed ten times the aggregate amount of such excess or ten rupees per head, as the case may be. Offences and penalties Any employer who : a.pays to any employee less than the minimum rates of wages fixed for tat employees class of work, or less than the amount due to him under the provision of te Act, or b. contravenes any rule or order made , shall be punishable with imprisonment which may extend to six months or with fine which may extend to Rs.500, or with both . In imposing such fine, the court shall take into consideration, the amount of any compensation already awarded against the accused in any proceedings taken under sec.20 Offence by companies
If the person committing any offence under the
Act is a company, every person who, at the time of the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. • POWERS OF THE GOVERNMENT • Power to Grant Exemptions and Execptions(sec 26) • The appropriate Government may: • direct that the provisions of this Act shall not apply in relation to the wages payable to disabled employees; • exempt by notification in the official Gazette some specified scheduled employments from the application of some or all of the provisions of the Act; • direct that the provisions of the Act shall not apply to the wages payable by an employer to a member of his family who is living with him and is dependent on him. • The appropriate government may direct by notification in the official Gazette that the provisions of this Act or any of them shall not apply in relation to the employees who are in receipt of wages exceeding the prescribed limit. • Power to add to schedule (sec. 27) The appropriate government, after giving notification in the official Gazette not less than three month's notice of its intention so to do, may by alike notification add to the schedule any employment in respect of which it is of opinion that minimum rates of wages should be fixes under this Act, and there upon the schedule shall in its applications to the state be deemed to be amended accordingly. • Power to give Directions (sec. 28) The Central Government may give directions to a state Government regarding the execution of this Act in the state. • Power to make Rules (sec. 29) The Central Government may, subject to the condition of previous publication, by notification in the official Gazette, make rules prescribing the term of office of the members, the procedure to be followed in the conduct of business, the method of voting, the manner of filling up casual vacancies in membership and the quorum necessary for the transaction of business of the Central Advisory Board. • Power to make rules (sec. 30) The appropriate government may, subject to the condition of previous publication ,by notification in the official Gazette make rules for carrying out the purposes of this Act . Obligation of Employers • Under the Act, it is the obligation of every employer to; • Pay to every employee engaged in a scheduled employment under him the minimum rates of wages in case fixed by the Government without any deduction, except as may be authorized under the payment of wages act, 1936; • observe all directions which may be issued under the act in regard to normal working hours, weekly day of rest with wages and overtime rates; • maintain registers and records as required by the Government showing particulars of employees' work performed by them, wages paid to them and receipts given by them; • issue wage books of slips to employees in respect of minimum rates of wages if required by the Government, and make authenticated entries in such wage books or wages slips. Right of workers Every worker has a right to; • receive minimum wages, including overtime wages , as fixed and notified by the Government, and • file claims for short payments within six months from the date the minimum wages become payable. Delay in filing the claim may be condoned, if there is sufficient cause.