Minimum Wages Act of 1948

• The Minimum Wages Act was established in 1948.

Topics Included in the Act

• Short title, extent, and application of the act
• Interpretation of terms used
• Fixing and revising minimum rates of wages
• Minimum rate of wages
• Procedure for fixing and revising minimum wages
• Advisory Board and Central Advisory Board
• Composition of committees
• Correction of errors
• Wages paid in kind
• Payment of minimum wage rates
• Fixing hours for a normal working day
• Overtime wages
• Wages for workers working less than the normal working day
• Wages for two or more classes of work
• Minimum time rate wages for piece work
• Maintenance of registers and records
• Inspectors and their powers
• Claims related to wages
• Single application for multiple employees
• Penalties for certain offenses
• General punishment provision for other offenses
• Cognizance of offenses and offenses by companies
• Payment of undisbursed amounts due to employees
• Protection against attachment of employer's assets with the Government
• Application of Payment of Wages Act, 1936, to scheduled employments
• Exemption of employer from liability in certain cases and Bar of suits
• Contracting out and Exemptions and exceptions
• Power of State Government to add to the Schedule
• Power of Central Government to give directions and make rules
• Power of appropriate Government to make rules
• Rules made by Central Government to be laid before Parliament
• Validation of fixation of certain minimum rates of wages

Section 1: Short Title and Extent

• The Act is called the Minimum Wages Act, 1948.
• It extends to the whole of India.

Section 2: Interpretation

• "Adolescent" refers to someone 14-18 years old.
• "Adult" refers to someone over 18 years old.
• "Appropriate Government" differs based on the employment.
  • Central Government oversees Central Government, railway, mine, oilfield, major port, or central corporation
  • State Government oversees all other scheduled employment
• "Child" means someone under 14 years of age.
• "Competent authority" is appointed by the appropriate government.
  • It ascertains the cost of living index number.
• "Cost of living index number" is the index declared by the competent authority.
  • It reflects the cost of living for employees.
• "Employer" is any person who employs individuals in scheduled employment.
  • Manager of a factory
  • Government-appointed supervisor in government-controlled employment
  • Chief executive officer of a local authority
  • Person responsible for supervising employees or paying wages
• "Prescribed" means prescribed by rules made under this Act.
• "Scheduled employment" is employment specified in the Schedule.
• "Wages" include remuneration expressible monetarily under the contract of employment.
  • Includes house and rent allowance

Wages do not include:

• Value of house accommodation, water, medical attendance
• Amenity excluded by the government
• Employer contributions to funds (Pension, PF, Social Insurance)
• Traveling allowance or value
• Special expenses reimbursement
• Gratuity on discharge
• "Employee" is anyone hired for work in scheduled employment.
  • Includes out-workers, and those deemed by the government
  • Excludes armed forces members

State Amendments - Madhya Pradesh

• In Section 2, Clause (i) is renamed clause (ee) with an added explanation.
• "Employee" includes someone dismissed or retrenched regarding claims arising out of payment.

State Amendments - Maharashtra

• In Section 2, Clause (z), the definition includes a person who has ceased to be an employee due to specific reasons for sections 20, 21, 22, 22A, 22B, 22C, and 22D.

Section 3: Fixing Minimum Rates of Wages

• The appropriate Government will fix minimum wage rates for listed employments.
• For employments in Part II of the Schedule, rates can be fixed for parts of the State or specified classes.
• Minimum rates must be reviewed and revised at intervals not exceeding five years, if necessary.
• If a review hasn't occurred within five years, it doesn't prevent a later review.
  • Until revised, rates remain in force.
• If less than 1000 employees are in scheduled employment, the Government can refrain from fixing minimum rates.
• If employment rises to 1000 or more, it must fix minimum rates as soon as possible.
• The appropriate Government can fix:
  • Minimum time rate
  • Minimum piece rate
  • Guaranteed time rate
  • Overtime rate
• If the rate of wages is in an industrial dispute:
  • If any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947, or before any like authority, the notification issued will not apply to those employees during the period in which the proceeding is pending.

Minimum Wages can be determined By:

• Different scheduled employments, different classes of work, adults, adolescents, children, and localities. Minimum wage rates can also be fixed by wage periods: hour, day, or month as prescribed.

State Amendments - Andhra Pradesh

• In clause (a) of sub-section (1) of section 3, "before the 31st day of December, 1961 ” shall be substituted.
• In sub-clause (iii), for the words, "one year" the words "two years" shall be substituted

State Amendments - Bihar

• In section 3, sub-section (2A) shall be omitted

State Amendments - Gujurat

• (1) in clause (a) of sub-section (1) in sub-clause (i), the following Provisos shall be added at the end

• "Provided that where the appropriate Government is the State Government, this sub-clause shall have effect as if the words, figures and letters "before the 31st day of December, 1959" had been deleted

• (a) in sub-clause (i), the following Provisos shall be added at the end, namely-*

• "Provided where the appropriate Government is the State Government, the 31st day shall be deleted

• The State Government may for the whole state fix such rates for a part of the State, and in the case of an employment under any local authority fix such rates for any specified local authority

• (b) (i) after the figure"1959" the following Proviso shall be inserted, namely- "Provided that where the appropriate Government is the State Government, this sub-clause shall have effect as if the words, figures and letters "before the 31st day of December, 1959" had been deleted" and

• (ii) for the words "Provided that "the words "Provided further that" shall be substituted:

• (iii) in sub-clause (iii) the following Provisos shall be added at the end, namely "Provided that, the State Government may, instead of fixing minimum rates of wages under this sub-clause for the whole State, fix such rates for a part of the State:

• 2. To sub-section (1A), the following Proviso shall be added, namely-

• "Provided that, where the State Government has for any reason not fixed the minimum rates of wages in respect of any scheduled employment within one year from the date on which it came to a finding as aforesaid in respect of such employment, nothing contained in this sub-section shall, after the commencement of the Minimum Wages (Gujarat Amendment) Act, 1961 prevent the State Government from fixing the minimum rates of wages in respect of such employment even after the expiry of the said period of one year"

State Amendments - Kerala

• In sub-section (1) of section 3- (i) for the words "The appropriate Government "the words "The State Government" shall be substituted;
• (ii) (a) for the figures, letters and words "31st day of December, 1959", the figures, letters and words "31st day of March, 1961,
• or such other-date, not being later than the 31st day of March, 1962,
• (b) after the existing proviso, the following further proviso shall be inserted, namely
• The State Government may at any time fix the minimum rates of wages payable to such class of employees
• For the purposes of this proviso, an employment includes the minimum rates of wages payable to whom have not been fixed;

State Amendments - Madhya Pradesh

• The State Government may, by notification, extend from time to time, the said periods by further period not exceeding three years in the aggregate in each case
• The State Government may specified class or classes of such for a part of the State employment or category or categories of employees in such employment in the whole State or part thereof. (2) To sub-section (1A), the following provisos shall be added namely:-
• The State Government may for the whole State fix such rates for a part of the State or for any specified class or classes of such"employment or category or categories of employees in such employment in the whole State or part thereof
• After the word "adults", the brackets and words"(males and females)" shall be inserted

State Amendments - Maharashtra

• : "Provided that, the State Government may fix rates for a part the State.
• Government.

Uttar Pradesh

• for the figure" 1959" wherever occurring the figure " 1960" shall be substituted

Section 4: Minimum Rate of Wages

• May consist of a basic wage with a special allowance adjusted to the cost of living index.
• It can be a basic wage with or without living allowances.
• The cash value of concessions for essential commodities at concessional rates.
• An all-inclusive rate covers basic rate, cost of living allowing, and concession values, if any.
• The cost of living allowance and cash concessions are computed by the competent authority as specified by the appropriate Government.

Section 5: Procedure for Fixing and Revising Minimum Wages

• The appropriate Government, when setting or revising minimum wages, may:
  • Appoint committees and sub-committees for guidance, or
  • Publish proposals in the Official Gazette.
• After advice from committees or considering representations, the Government will fix or revise minimum rates.
  • Notification comes into force three months from its issue date
• If the Government revises wages using clause (b) of sub-section (1), they must consult the Advisory Board.

Section 7: Advisory Board

• For coordinating committee work under section 5 and advising on fixing/revising wages, the appropriate Government appoints an Advisory Board.

Section 8: Central Advisory Board

• Advises the Central and State Governments on fixing/revising minimum wage rates and coordinates Advisory Boards.
• Consists of Central Government nominees, with equal employer and employee representation.
  • Includes independent persons (not exceeding one-third of total), with a chairman appointed by the Central Government.

Section 9: Composition of Committees

• Committees, sub-committees, and the Advisory Board have members nominated by the appropriate Government representing employers and employees who shall be equal in number.
  • Independent persons cannot exceed one-third of members.
  • One independent person is appointed chairman by the appropriate Government.

State Amendments - Madhya Pradesh

• After the words"and independent persons", the words "including officers of Government" shall be inserted. (2) for the words "such independent persons", the words "such independent persons or such officers of Government" shall be substituted: (3) the following proviso and the Explanation shall be inserted, namely- Provided that the number of officers of Government shall not exceed two.

Rajsthan Additions

• To section 9 as the following Explanation shall be added and deemed always to have been added "Explanation. For the officer of the State Govenrment shall be an independent
• the new section shall be inserted, namely Finality of orders constituting board committe

Tamil Nadu

• Saving-No order of the State Government nominating any person as the Chairman or a member of the Advisory Board or a Committee or
• Court of law on the ground the validity of

Section 10: Correction of Errors:

• The appropriate Government can correct clerical or arithmetical errors in wage orders through notification in the Official Gazette. Every such notification is placed before the Advisory Board for information.

Section 11: Wages In Kind

• Minimum wages must be paid in cash.
• If it"s customary to pay wages in kind, the Government may authorize it via Official Gazette notification.
• If the Government deems essential commodities should be supplied at concession rates, it may authorize this via notification.
• The cash value of wages in kind and concession supplies is estimated in the prescribed manner.

Section 12: Payment of Minimum Rates of Wages

• When a notification under Section 5 is in force, employers must pay at least the minimum wage without unauthorized deductions.
  • Within prescribed timelines and conditions.
• Nothing in this section affects the Payment of Wages Act 1936.

State Amendments - Bihar

• In section 12 after sub-section (1), the following sub-section shall be inserted, namely:- "(1A) wages at a rate higher shall be such scheduled employment and be the minimum

State Amendments - Madhya Pradesh

• In section 12 after sub-section (1)," the wages so payable that all are followed

Section 13: Fixing Hours for a Normal Working Day

• For scheduled employment where minimum wages apply, the appropriate Government may:
  • Set the number of hours for a normal workday, including intervals.
  • Provide a day of rest every seven days with remuneration.
  • Set payment for work on rest days at no less than the overtime rate.
• The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such conditions as may be prescribed:
  • conditions as may be prescribed

The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such

• the following classes of employees, apply only to such extent and a may be prescribed:

State Amendments - Maharashtra

• "(aa) fix the number of hours of work which shall constitute a normal working week

Section 14: Overtime

• If an employee works extra hours, the employer shall work an hour and not the overtime rate

State Amendments - Madhya Pradesh

The State Government may, by notification, fix the limit for over time work subject specified in the notification"

Section 15: Wages of worker who works for less than normal working day.

• shall however, the following

Section 16: Wages for two or more classes of work.

employees in the minimum wage in

STATE AMENDMENTS - MADHYA PRADESH

• the minimum rate is respect.

Section 17: Minimum time rate wages for piece work.

• When an employee is employed on piece work

Section 18: Maintenance of registers and records.

Section 19: Inspectors.

• (1) The appropriate Government may, by notification in the Official Gazette,

The Code

• (3) Every Inspector shall be deemed to be a public servant with in the meaning of the Indian Penal Code (45 of 1860).

STATE AMENDMENTS - BIHAR.

• In section 19 in sub-section (2).

In section 19 , after BIHAR

• (2) For words
• (ddd) conduct any application presented under sub-Section

Section 20: Claims

• The may notify that any claim of any officer

STATE AMMADMENTS are provided in sections

• the minimum rates if less than the

Section 21: Single application in respect of a number of employees.

• The Authority may, in this to apply this

STATE AMENDMENT Guajrat:

• In section 21A payment with the application the of the with shall apply to process

SECTON 22: PENALTIES FOR CERTAIN OFFENCES

• PROVISIONS OF ACT

Section 22C: Offences by companies.

• The with to neglect and manage and correct and is also made

Section 22D & 22E

• Section on amounts to amounts to employers that include

Section for Rules

• (1) government may is with that for with rules
• (2) term time with to records and that with
• (j) the is to prescribe slips
• (k) the to inspector

###Section 30A: Rules are made when the House is it before each