Minimum Wages Act 1948 Quiz

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Questions and Answers

What index is the Variable Dearness Allowance (VDA) linked to for protecting minimum wages against inflation?

  • Wholesale Price Index Number for all Urban Consumers (WPI-UC)
  • Consumer Price Index Number for Industrial Workers (CPI – IW) (correct)
  • Wholesale Price Index Number for Industrial Workers (WPI – IW)
  • Consumer Price Index Number for all Urban Consumers (CPI-UC)

Which of the following is NOT a responsibility of the Central Advisory Board?

  • Advising on the fixation of minimum rates of wages
  • Evaluating wage structures of private sectors (correct)
  • Co-ordinating the work of State Advisory Boards
  • Advising on the revision of minimum rates of wages

If an employee works less than the requisite number of hours in a day, how shall his wages be computed?

  • For a full normal working day
  • At a reduced hourly rate
  • For a half working day
  • For the hours he had worked (correct)

When was the tripartite Committee on Fair Wage constituted to provide guidelines for wage structures?

<p>1946 (B)</p> Signup and view all the answers

Under which condition can the appropriate Governments notify an employment where minimum wages can be fixed?

<p>For 500 or more employees working (A)</p> Signup and view all the answers

Which of the following acts establishes the statutory minimum wage?

<p>Minimum Wages Act, 1948 (A)</p> Signup and view all the answers

What is the minimum frequency for revising minimum wages as mandated by the Minimum Wages Act, 1948?

<p>Once every 2 years (D)</p> Signup and view all the answers

Which of the following is NOT a method for fixing minimum wages under the Minimum Wages Act, 1948?

<p>Bargaining Method (D)</p> Signup and view all the answers

The Minimum Wages Act, 1948 has how many schedules related to different types of employments?

<p>Two schedules: one for industrial establishments and one for agriculture (C)</p> Signup and view all the answers

Which of the following acts is based on the principle of welfare?

<p>Minimum Wages Act, 1948 (C)</p> Signup and view all the answers

Which of the following is NOT applicable to unorganized sector workers in India?

<p>Factories Act, 1948 (B)</p> Signup and view all the answers

Under the Minimum Wages Act, what designation cannot be appointed by the appropriate government for handling wage claim disputes?

<p>Commissioner for Workmen’s Compensation (A)</p> Signup and view all the answers

Which of the following documents contains the methods for fixation/revision of minimum wages?

<p>Section 5 of the Minimum Wages Act, 1948 (B)</p> Signup and view all the answers

Flashcards

What index does the government use for VDA adjustments?

The Central Government adjusts the Variable Dearness Allowance (VDA) to protect minimum wages from inflation by using the Consumer Price Index Number for Industrial Workers (CPI-IW). This index tracks changes in the cost of living for industrial workers.

What are the key responsibilities of the Central Advisory Board?

The Central Advisory Board plays a crucial role in setting and revising minimum wage rates. It advises both Central and State Governments and coordinates efforts with state advisory boards.

Who are the members of the Central Advisory Board?

The Central Advisory Board includes representatives from both employers, employees, and independent individuals. This ensures a balanced perspective when making decisions about minimum wages.

What happens if an employee works less than a full day?

If an employee works for less than the required hours on a given day, they are entitled to receive wages for the actual hours worked, not a full day's wages.

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When was the Committee on Fair Wage established?

The 'Committee on Fair Wage' was formed in 1946 to provide guidance on fair wage structures across the country. It established principles and recommendations for wage setting.

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Minimum Wages Act 1948

The Minimum Wages Act, 1948 establishes the legal framework for setting and enforcing minimum wage standards in India. It mandates that the appropriate government (either central or state) must fix minimum wages for specified employment categories. This act aims to prevent employers from exploiting workers by paying wages below a predetermined minimum.

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Who is covered by the Minimum Wages Act?

The Minimum Wages Act, 1948 dictates that the appropriate government must fix minimum wages for employees engaged in specific employment categories outlined in Schedule I, including Part I, Part II, and any additional employments added under Section 27.

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Methods for Setting Minimum Wages

The Minimum Wages Act, 1948 provides various methods for setting minimum wages (or revising existing ones). These methods include the notification method, the committee method, and the bargaining method.

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How often are minimum wages revised?

While the Minimum Wages Act, 1948 mandates minimum wage revision, it doesn't specify a fixed timeframe. However, it emphasizes the importance of regular review to ensure the minimum wages remain relevant to the cost of living and economic conditions.

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How does the Minimum Wages Act structure its schedules?

The Minimum Wages Act, 1948 employs a two-schedule system to categorize employments. Schedule I covers industrial establishments, including specified categories outlined in Part I and Part II, alongside additional employments included under Section 27. Schedule II covers agricultural employment. The act ensures minimum wage regulations are tailored to specific sectors.

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Is the Minimum Wages Act a welfare legislation?

The Minimum Wages Act, 1948 is focused on ensuring a basic living wage for workers, establishing a minimum floor for earnings. Its primary focus is economic well-being rather than broader social welfare.

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Does the Minimum Wages Act apply to the unorganized sector?

The Minimum Wages Act applies to the unorganized sector in India. It sets minimum wage standards for various workers, including those in industries, shops, and establishments. This Act's coverage extends to a broad range of workers in the unorganized sector.

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Who can handle minimum wage claims?

The Minimum Wages Act, 1948 empowers the appropriate government to appoint designated officers to address claims arising from underpayment of minimum wages. These officers can include commissioners for Workmen’s compensation, designated central government officials with Labour Commissioner roles, or state government officers with a minimum rank of Labour Commissioner. The Act aims to ensure effective enforcement of its provisions.

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Study Notes

Minimum Wages Act 1948

  • Statutory minimum wages are fixed under the Minimum Wages Act, 1948
  • Appropriate government sets minimum wage rates for specified employment types.
  • These employment types are detailed in Schedule I, Part I, II and updated under section 27.
  • Methods for determining minimum wages include notification and committee methods, but not bargaining.
  • Minimum wages are revised at least every 5 years.

Minimum Wage Act 1948 - Other Details

  • The Minimum Wages Act operates across different industry types not a single schedule.
  • Welfare acts like the Mica Mines Labour Welfare Funds Act, Iron Ore Mines Labour Welfare Funds Act, and Dock Workers (Safety, Health, Welfare) Act are based on welfare principles, but not the Minimum Wages Act.
  • The Central Advisory Board advises on minimum wage establishment and revisions for both Centre and state governments.
  • The board comprises employers, employees, and independent members.
  • For employment with less than the required hours for a normal working day, the wages for the full day are still applicable.
  • The Committee on Fair Wage provides guidelines for wage structures in the country. This Committee was constituted in 1948.
  • The appropriate governments can set minimum wage for employment with 250 employees or more.

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