Minimum wages Act, 1948

Objective of the Act

The object of the Act is to secure the welfare of the workers in a competitive market by fixing the minimum rates of wages in certain employments. The Minimum Wages Act was passed in 1948 enabling the Central and State Government to fix minimum rates of wages payable to employees

Definitions
Appropriate Government [sec 2(b)].: Appropriate government in relation to any schedule

employment carried on by or under the authority of

central government or a railway administration, or

in relation to a mind, oilfield or major port, or any

corporation established by a central act means the central government [sec.2(b)(i) ].

1. 2. 3. 4. 5. 6. 7. 8. 9.

THE SECHEDULED [ Secs. 2 (g)] PART 1 Employment in any woolen carpet making or shawl waving establishment. Employment in rice mill, flour mill or daal mill. Employment in any tobacco (including bidi making) manufactory. Employment in any oil mill. Employment in any local authority. Employment in any stone breaking or stone crushing. Employment on the construction of roads or in building operation. Employment in any public motor transport. Employment in any bauxite mines.

10. Employment in any gypsum mines. 11. Employment in any china clay mines. 12. Employment in copper mines. 13. Employment in white clay mines. 14. Employment in stone mines. 15. Employment in fire clay mines. 16. Employment in quartz mines. 17. Employment in silica mines. 18. Employment in felspar mines. 19. Employment in dolomite mines. 20. Employment in granite mines. 21. Employment in iron ore mines. 22. Employment in railways good sheds, docks and ports. 23. Employment in marble mines.

Part II
EMPLOYMENT IN AGRICULTURE: In any form of farming, including A. The cultivation and tillage of the soil, B. The dairy farming C. The production, cultivation, growing and harvesting of any agricultural or horticultural commodity D. Any forestry or timbering operations and the preparation for market and delivery to storage or to market or to carriage for transportation to market of firm produce.

Wages [sec. 2 (h)] Wages means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or work done in such employment. It includes house rent allowances but does not include-

i) The value of Any house accommodation, supply of light, water, medical attendance or ii) Any other amenity excluded by general or special order of the appropriate government. iii) Any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance. iv) Any traveling allowance or the value of any travelling concession. v) Any sum paid to the person employed to defray special expenses entitled on him by the nature of his employment or vi) Any gratuity payable on discharge.

Employee [sec. 2 (i)]. Employee means any person who is employed for hire
or reward to do any work, Skilled or unskilled, Manual or clerical, The term includes an out-worker to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted, or otherwise processed for sale. The term also include an employee declared to be an employee by the appropriate government. It doesnt how ever include any member of the armed forces of the union.

FIXATION OF MINIMUM RATES OF WAGES (SEC. 3)

The responsibility for fixing the minimum rates of wages is that of the appropriate government: a) Shall fix the minimum rates of wages payable to employees employed in an employment specified in part I and part II of the schedule. b) In respect of employees employed in an employment specified in part II of the scheduled, instead of fixing minimum rates of wages for the whole state, fix such rates for a part of the state or for any specified class of such employment in the whole state. c) Shall review at such intervals not exceeding 5 years, the minimum rates of wages so fixed and revised the minimum risk if necessary.

MINIMUM NUMBER OF EMPLOYEES.

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 1000 employees engaged in such employment.

If it has risen to 1000 or more, it shall fix minimum rates of wages as soon as may be after such finding. [sec. 3 (1-A)].

Minimum Rates.
The appropriate government may fixa) A minimum rate of wages for time work (referred to as a minimum time rate). b) A minimum rate of wages for piece work (referred to as a minimum piece rate). c) A minimum rate of remuneration to apply in the case of such employees employed on piece work for the purpose of securing a minimum rate of wages on a time work basis (referred to as a guaranteed time rate). d) A minimum rate whether time or piece rate to apply in substitution for the minimum rate which would otherwise be applicable in respect of overtime work done by employees (referred to as overtime rate).

Different minimum rates.

In fixing or revising minimum rates of wages may be fixed fori. Different scheduled employment, ii. Different classes of the work in same scheduled employment, iii. Adults, adolescent, children and apprentices, iv. Different localities [sec. 3 (3) (a)].

 Further in fixing or revising minimum rates of wages under sec. 3, minimum rates of wages may be fixed by anyone or more of the following wage- periods, namely: i. By the hour ii. By the day iii. By the month or iv. By such other larger wage period as may be prescribed.

Minimum rate of wages (sec. 4 )

Any minimum rate of wages fixed or revised by the appropriate government in respect of scheduled employments under sec. 3 may consist of i. A basic rate of wages and a special allowance referred to as cost of living allowance. The rate of cost of living allowance shall be adjusted at such interval and in such manner as the appropriate government may direct or. ii. 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 concessional rates, or iii. An all inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any [sec. 4 (1)].

Procedure for fixing and revising minimum wages (Sec. 5) Sec. 5 provides 2 separate modes of procedure for fixing and revising minimum wages and primary object of both the procedure is to enable the government to reach a balanced conclusion with regard to fixation of a minimum wages. The provision of sec. 5 are summed up as follows: Government shall follow either of 2 methods to fix minimum rates of wages or in revising minimum rates of wages:

a) Appointment of committees.: The appropriate

government shall appoint as many committees and sub-committees as it considers necessary to hold enquires and advice it in respect of fixation or revision of minimum rates of wages, as the case may be [sec. 5 (1) (a)]; or

 Publication of proposal in Official Gazette. The appropriate government shall, by notification in official gazette, published it proposal for the information of persons likely to effected by the fixation or revision of minimum rate of wages. It shall also specify a date on which the proposal will be taken into consideration. The dates so specified shall not be less than two months form the date of notification [sec. 5 (1) (b)].

SAFEGUARDS IN PAYMENT OF MINIMUM WAGES

Wages in kind Minimum wages shall be paid in cash But where in has been the custom to pay wages wholly or partly in kind, the appropriate government may, by notification in Official Gazette, authorize the payment of minimum wages either wholly or partly in kind. It also authorize the provision of the supply of essential commodities at concessional rates. The cash value of wages in kind and of concession in respect of supplies of essential commodities at concessional rates authorized shall be estimated in prescribed manner.

Payment of minimum rates of wages(sec.12) Where in respect of any scheduled employment minimum wages have fixed, the employ shall pay to every employ wages at a rate not less than minimum rate of wages fixed for the class of employees in the employment. Such wages shall be paid with out any deductions except as may be authorized. Where the contract rate of wages is higher, the statutory obligation doesnt come in play[sec. 12(1)].

Fixing hours for a normal working day, etc (sec. 13 ) In regard to any scheduled employment where minimum rates of wages have been fixed, appropriate governmenta) Fix the number of hours of work which constitute a normal working day. b) Provide for a day of rest in every period of 7 days and for payment of remuneration in respect of such day of rest; c) Provide for payment for work on a day of rest at a rate not less than the over time rate [sec. 13 (1)].

In relation to the following cases of employees the condition as may be prescribed; 1. Employees engaged on urgent work, or in any emergency which could not have been foreseen or prevented; 2. Employees engaged in work in the nature of preparatory or complimentary work which must necessarily be carried on out side the limits laid down for the general working in the employment concern; 3. Employees whose employment is essentially intermittent; 4. Employees engaged in any work which for technical reasons has to be completed before the duty is over;

5. Employees engaged in work which could not be carried on except at times dependent on the irregular action of natural forces [sec. 13 (2)]. Intermittent employment. The appropriate government declares an employment intermittent on the ground that the daily hours of duty of the employee normally includes period of inaction during which the employee may be on duty but is not called upon to display either physical activity on sustained attention [sec. 13 (3)].

 Rates of over time (sec. 14) Where an employee, is minimum rate of wages is fixed under this act, by the hour, by the day or by such longer wage- period as may be prescribed, works over time, the employer shall pay him for every hour or for part of an hour so worked in excess, wages fixed for over time work under any law of the appropriate government, which ever is higher [sec. 14 (1)].

Wages of worker who works less than normal working day (sec. 15)
Sometimes an employee whose minimum rate of wages has been fixed by the day may work on any day on which

he was employed for a period less than the requisite

number of hours constituting a normal working day. In that he is entitled to receive wages in respect of work done by him on that day if he had worked for a full normal working day except

1. Where is failure to work is caused by his unwilling to

work and not by omission of the employer to provide him with work.

Wages for to or more classes of work (sec. 16 ) In this case different minimum rate of wages is applicable the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.
Minimum time rate wages for piece work (sec. 17 ) In this case minimum time rate and not a minimum piece rate has been fixed under the act, employ shall pay the wages not less then the minimum time rate.

Maintenance of registers and records (sec. 18) Every employer shall maintain registers and records giving particulars of 1. Employees employed by him, the work performed by them, 2. Wages paid to them the receipt given by them 3. And search other particulars as may be prescribed he shall also keep exhibited notices in prescribed form containing prescribed particular in the prescribed manner in the factory, 4. Work shop or place where the employees in scheduled employment may be employed in the case out- workers.