PRESENTED BY

HEMANTH M.N (roll no. 23)

IRFANA S NUJUM (roll no. 24)
JAISON S ROZARIO (roll no. 25)
JITHIN RAJ J A (roll no. 26)
JOHANS JACOB P (roll no. 28)
INTRODUCTION
 The concept of minimum wages first evolved with reference to
remuneration of workers in those industries where the level of
wages was substantially low as compared to the wages for similar
types of labour in other industries.

 The Act empowers the appropriate government for fixation of

minimum wages in employments enumerated in the schedule of
the Act. The fixation of minimum wages relates to the industries
where sweated labour is most prevalent or where there is
inevitable chance of exploitation. In prescribing the minimum
wages rates, the capacity need to be considered as the state
assumes that every employer must pay the minimum wages if he
employs labour.
OBJECTIVE
 To provide minimum wages to the workers working in
organised sector.

 To stop exploitation of the workers.

 To empower the government to take steps for fixing

minimum wages and to revising it in a timely manner.

 To apply this law on most of the sections in organised

sector(scheduled employment).
APPLICABILITY OF THE ACT
The Minimum Wages Act 1948 covers all states of
India. It applies to a number of employments which
are listed in a schedule appended to the Act and may
be extended by the appropriate Government, Central
or State, as the case may be to any employment in
respect of which it is of opinion that minimum rates of
wages should be fixed under the Act.
HISTORY
 The initiative by Shri K.G.R Choudhary in 1920 set up
boards for determination of wages.
 The international labour conference adopted
convention 26 and 30 in 1928 relating to wage fixing
machinery in trades or part of trades.
 The Minimum Wages Bill was introduced in the
Central Legislative Assembly on 11.4.1946 and came
into force with effect from 15.3.1948.
 The Committee on fair wages was setup in 1948 to
provide guidelines for wage structure.
DEFINITIONS
 Adolescent [section 2(a)]
According to Sec 2(a) “adolescent” means a person who has
completed his fourteenth years of age but has not completed
his eighteenth years.

 Adult [section 2(aa)]

“Adult means a person who has completed his eighteen
years of age”

 Appropriate Government [section 2(b)]

“Appropriate government ” means the Central Government.
DEFINITIONS
 Child[Section 2(bb)]
According to section2(bb) “Child” means a person who
has not completed his fourteen years of age.

 Competent Authority[Section 2(c)]

“Competent authority” means the authority appointed
by the appropriate government by notification in its
Official Gazette to ascertain from time to time the cost of
living index number applicable to the employees employed
in the scheduled employments in such notification.
DEFINITIONS
 Cost of living Index number [Section 2(d)]
“Cost of living index number” in relation to employees in any scheduled
employment in respect of which minimum rates of wages have been fixed,
means the index number ascertained and declared by the competent
authority by notification in the Official Gazette to be the cost of living
index number applicable to employees in such employment. A Cost of
Living Index measures the changing cost of a constant standard of living.

 Employer[Section 2(e)]
“Employer” means any person who employs, whether directly or though
another person, or whether on behalf of himself or any other person, one
or more employees in any scheduled employment in respect of which
minimum rates of wages have been fixed under the Act.
DEFINITIONS
 Scheduled Employment[Section 2(g)]
“Scheduled employment” means an employment
specified in the schedule, or any process or branch of
work forming part of such employment.

 Wages[Section 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.
DEFINITIONS
 Employee [Section 2(i)]
“Employee” means any person who is employed for
his hire or reward to do any work, skilled or
unskilled, manual or clerical, in a scheduled
employment in respect of which minimum rates of
wages have been fixed.
Constitutional Validity
India introduced the Minimum Wages Act in 1948 giving
both the Central govt and State govt jurisdiction in fixing
wages. The Act is legally non-binding but statutory.

No single uniform minimum wage rate across the country .

(A)The Act is not unreasonable

The Act is considered violation of Art.19(1)(g) in the eyes of

employers, but the SC ruled that the Act is based on DPSP
provided under Art.43
The constitutional validity of the Act was
challenged in
Bijay cotton mills Ltd v. State of Ajmer

 Another Important judgment that favours &

supports the constitutional validity of the Act:
V. Unichonoy v. State of kerala
(B)Act doesn't violate Art.14 of the
constitution

 S. 3(3)(iv) neither contravene nor does it violate the equal

protection clause of the constitution. The court also held
that the constitution of the committees & the Advisory
Wage Board did not contravene the statutory provisions
in that behalf prescribed by the legislature, this was held
in Bhikusa yamasa kshatriya v. Sangamner kamgar Union
(C) Notification fixing different rates of minimum
wages for different localities is not
discriminatory.

Referring the case of N. M Wadia Charitable Hospital v.

State of Maharashtra, fixing different minimum wages
for different localities is permitted under the
constitution and under labour laws.
Fixation And Revision Of Minimum
Wages
Sec 3 - Fixing of minimum rates of
wages.
The appropriate govt ;
 Shall fix minimum rates of wages for an
employment specified in Part l and Part ll of
schedule & added by notification in official gazette.
May fix rates for a part of the state or for any
specific class or classes .
Shall review & revise -not exceeding 5 yrs .
Minimum Rates [S. 3(2)]
A minimum time rate
A minimum piece rate
A guaranteed rate
Overtime rate
Different Minimum Rates
[S. 3(3)]
Sec 3 (3) provides that different minimum rates of wages
may be fixed for
different scheduled employments
different classes of work in the same scheduled
employments
adults, adolescents, children's and apprentices
different localities
Different Minimum Rates
[S. 3(3)]
Further it may be fixed by any one or more of the
following wage period;
By the hour
By the day
By the month
By such other larger wage period
MINIMUM RATE OF WAGES (Sec.4)
Basic + Special Allowance (Which varies with the cost of living index).

Basic (with or without cost of living allowance)+ Cash value of

concessional supply of essential commodities like food, clothes etc…
on concession rates.

All inclusive rates which includes Basic + Cost of living allowances +

Cash value of concessional supply of materials.

CLA and CVC computed by competent authority…….given by

appropriate Govt.

OBJECT – minimum wages – increase in CL – neutralized.

Components Of Wages.
A basic rate of wage.

Cost of living allowance or VAD

Cash value of concessions.

A combination of all three components.

.Kerala Hotel and Restaurant Assn. v. State of Kerala
[AIR 1990 SC 913]

minimum wage not sustenance wage – measure of education –

medical requirements.

.Karnataka Film Chamber of Commerce, Bangalore v.

State of Karnataka [1986 Lab 1C 1890]
basic wages – integral part of minimum wages – sec.4(1) – not consist of
BW and DA.
Procedure For Fixing and Revising
Minimum Wages (Sec.5)
The appropriate Govt. shall,
Committee Method - appoint as many committees
and sub committees – hold inquires.

Notification Method - publish its proposals in official

gazette asking comments from the affected parties -
not less than 2 months from date of notification.

After the advice of committees – revise the minimum

rate of wages – comes into force on expiry of 3 months.
Advisory board (Sec 7)
Appointed by appropriate government
To co-ordinate the work of Committees and Sub
committees Appointed under sec 5
Central advisory board(Sec 8)
To advise the central and state governments in fixation
and revision of minimum Rates of wages
To co-ordinate the work of the advisory board
Composition Of Committees (sec 9)
Each of the committee, Sub committee and the advisory
board Shall consist of:
1. Person to be nominated By the appropriate
Government
2. Representing the employer’s and employees In the
sheduled Employments who shall be Equal in
numbers
3. Independent persons not exceeding one-third of its
total numbers of members: one of such independent
person Shall be appointed the chairman by the
appropriate Government
Inspector (sec 19)
1. The appropriate Government may, by notification in the
official gazette, appoint such persons as it thinks fit to be
inspectors for the purpose of this act
2. Subject to any rule made in this behalf, an inspector may,
within the local limit which he is appointed
3. Every Inspector Shall be deemed to be a public servant
With in the meaning of the Indian penal code
4. Any person required to Produce any document or things or
to give any information by an inspector under sub section
(2) shall be deemed to be Legally bound to do Within the
meaning of sec 175 and sec 176 Of the Indian penal code
PENALTIES: [SEC. 22]
OFFENCE
Payment of wages less than minimum wages to
employees
PUNISHMENT
Imprisonment which may extend up to 6 months or fine
which may extend up to 500/- or both
CONTRACTING OUT: [SEC. 25]
Any contract or agreement, whether made before or
after the commencement of this Act, whereby an
employee either relinquishes or reduces his right to a
minimum rate of wages or any privilege or concession
accruing to him under this Act shall be null and void
so far as it purports to reduce the minimum rate of
wages fixed under this Act.
POWER OF STATE GOVERNMENT TO
ADD SCHEDULE : [SEC:27]

The State Government has to notify in the Official

Gazette not less than three months of its intention to
do so.
POWER OF CENTRAL GOVERNMENT
TO GIVE DIRECTIONS:[SEC:28]

The Central Government may give directions to a State

Government as to the carrying into execution of this
Act in the State.
POWER OF THE CENTRAL
GOVERNMENT TO MAKE RULES:[SEC.
29]
Procedure to be followed in conduct of business
Method of voting
Manner of filling of casual vacancies in membership
 Quorum necessary for the transaction of business of
the Central Advisory Board.