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8/7/2019 _revised_THE_MINIMUM_WAGES_ACT_1948
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THE
MINIMUMWAGES ACT,
1948
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SCOPE AND COVERAGE
This Act may be called the Minimum Wages Act
1948.
It extends to the whole of India.
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OBJECTIVES OF THE ACT
To prevent the exploitation of ignorant, less
organized and less privileged members of the society
It aims at fixation of minimum wages which the
employers must pay
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DEFINITIONS
APPROPRIATE GOVT.
means -
in relation to any scheduled employment carried on
by or under the authority of the Central Government
than the Central Government and
in relation to any other scheduled employment the
State Government;
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COMPETENT AUTHORITY
means
the authority appointed by the appropriate
government by notification in its Official
Gazette to ascertain from time to time thecost of living index number applicable to the
employees employed in the scheduled
employments specified in such notification;
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COST OF LIVING INDEX
NUMBER
Cost of living index number" means the indexnumber ascertained and declared by the competentauthority by notification in the Official Gazette to be thecost of living index number applicable to employee inany scheduled employment in respect of whichminimum rates of wages have been fixed;
the term cost of living index has been replaced by
most of the state govt. by the term consumer priceindex number
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EMPLOYER
means
i. any person who employs whether directly or through
another person one or more employees in any scheduled
employment in respect of which minimum rates of wages
have been fixed. When workers are employed through a
contractor, the contractor is an employer within the
meaning of the act
Any person named as manager of the factory wherein the
scheduled employment is carried out;
Any person or authority appointed by government for thesupervision and control of employees or where no person
or authority is so appointed the head of the department;
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Any person appointed by local authority for the
supervision and control of employees or where no
person is so appointed the chief executive officer of thelocal authority;
Any person responsible to the owner for the supervision
and control of the employees or for the payment ofwages;
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SCHEDULED EMPLOYMENT
means
an employment specified in the Schedule or any
process or branch of work forming part of such
employment;
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WAGESmeans
all remuneration capable of being expressed in terms of money whichwould if the terms of the contract of employment express or impliedwere fulfilled be payable to a person employed in respect of hisemployment or of work done in such employment and
includes house rent allowance
but does not include -
a.
the value of- any house accommodation supply of light water medical attendance
or
any other amenity or any service excluded by general or specialorder of the appropriate government;
a. any contribution paid by the employer to any person fund orprovident fund orunder any scheme ofsocial insurance;
b. any traveling allowance or the value ofany traveling concession;
c. any sum paid to the person employed to defray special expensesentailed on him by the nature of his employment; or
d. any gratuity payable on discharge;
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EMPLOYEE
means
any person who is employed for hire or reward to do anywork skilled or unskilled manual or clerical in a scheduledemployment in respect of which minimum rates of wageshave been fixed;
and includes
an out-worker to whom any articles or materials are givenout by another person to be made up cleaned washedaltered ornamented finished repaired or otherwiseprocessed for sale for the purposes of the trade or businessof that otherperson
and also includes an employee declared to be an employeeby the appropriate government;
but does not include:
any member of the Armed Forces of the Union.
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MINIMUM WAGES
Minimum wage as the name implies, represents, the
level below which wage cannot be allowed to drop.
It is the lowest limit below which no worker should be
paid.
The minimum wage should provide not merely for the
bare subsistence of life, but for the preservation of the
efficiency of the worker
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FIXATION AND REVISION OF MINIMUM
WAGES (SEC-3)
The appropriate government shall, in the mannerhereinafter provided,-
fix the minimum rates of wages payable to employeesemployed in an employment specified in Part I or Part
II of the Schedule.
review at such intervals as it may think fit, suchintervals not exceeding five years, the minimum ratesof wages so fixed and revise the minimum rates, ifnecessary
The appropriate govt. may not fix the minimum rate ofwages for any scheduled employment in which lessthan one thousand employees are engaged in thewhole state
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The appropriate government may fix-
a minimum rate of wages for time work (hereinafter
referred to as "a minimum time rate");
a minimum rate of wages for piece work (hereinafter
referred to as "a minimum piece rate");
a minimum rate of remuneration to apply in the case of
employees employed on piece work for the purpose ofsecuring to such employees a minimum rate of wages
on a time work basis (hereinafter referred to as "a
guaranteed time rate");
a minimum rate in respect of overtime work done byemployees (hereinafter referred to as "overtime rate").
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In fixing or revising minimum rates of wages under this section,-
Different minimum rates of wages may be fixed for-
different scheduled employments; different classes of work in the same scheduled employment
adults, adolescents, children and apprentices
Minimum rates of wages may be fixed by any one or more of
the following wage periods, namely:
by the hour,
by the day,
by the month, or
by such other larger wage-period as may be prescribed;
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an all-inclusive rate allowing for the basic rate, the cost
of living allowance and the cash value of the
concessions, ifany.
The cost of living allowance and the cash value of the
concessions in respect of supplies of essential
commodities at concessional rate shall be computed bythe competent authority at such intervals and in
accordance with such directions as may be specified or
given by the appropriate government.
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The government takes into consideration either the
advice of the committee or sub-committee appointed
under the first method or considers all representationsreceived by it under the second method
The app. Govt shall thereafter fix or revise the minimum
rate of wages by notification in the official gazette
It shall come into force on the expiry of three months
from the date of its issue unless otherwise provided
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ADVISORY BOARD (SEC-7)
It is obligatory upon appropriate govt. to appoint anadvisory board for the following purposes:
To co-ordinate the work of committees and sub-
committees appointed undersec-5
To advise the appropriate govt. generally in the matter of
fixing and revising the minimum rate of wages
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CENTRAL ADVISORY BOARD
(SEC-8)
Purpose:
To advise the central orstate government in the matter
of fixation and revision ofminimum rates of wages
To co-ordinate the work of the advisory board
appointed undersec-7
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COMPOSITION OF COMMITTEES
(SEC-9)
Each of the committees, sub-committees and the Advisory
Board shall consist of
persons to be nominated by the appropriate governmentrepresenting employers and employees in the scheduled
employments,
who shall be equal in number, and independent persons not
exceeding one-third of its total number ofmembers;
one of such independent persons shall be appointed the
Chairman by the appropriate government.
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CORRECTION OF ERRORS
(SEC-10)
The appropriate government may, at any time, by
notification in the Official Gazette, correct clerical or
arithmetical mistakes in any order fixing or revising
minimum rates of wages under this Act, orerrors arising
therein from any accidental slip or omission
Every such notification shall, as soon as may be after it
is issued, be placed before the Advisory Board for
information,
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WAGES IN KIND
(SEC-11)
Minimum wages payable under this Act shall be paid in cash.
Ifappropriate government is of the opinion that provision should be
made for the supply ofessential commodities at concessional rates,
the appropriate government may, by notification in the Official
Gazette, authorize the provision of such supplies at concessional
rates.
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PAYMENT OF MINIMUM RATE OF
WAGES
(SEC-12)
Where in respect of any scheduled employment a
notification under section 5 is in force, the employer
shall pay to every employee engaged in ascheduled employment under him wages at a rate
not less than the minimum rate of wages fixed by
such notification for that class of employees in that
employment without any deductions except as may
be authorized within such time and subject to such
conditions as may be prescribed.
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The employer may fix any reasonable norm specifyingthe quantity of work which must be turned out by the
workman during the day. But if the workman does not
turn out work in conformity with such norm, the
employer may take disciplinary action against the
workman and dismiss him, but cannot pay him anythingless than the minimum wage. Payment of wages less than
the minimum wage on the ground of less performance or
output is illegal.
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FIXING HOURS FOR THE NORMAL WORKING
DAY
(SEC-13)
In regard to any scheduled employment minimum rates
of wages in respect of which have been fixed under this
Act, the appropriate government may-
fix the number of hours of work which shall constitute anormal working day.
provide for a day of rest in every period of seven days
which shall be allowed to all employees or to any
specified class ofemployees and
Provide` for the payment of remuneration in respect of
such days of rest;
provide for payment for work on a day of rest at a rate
not less than the overtime rate.
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The above provisions shall apply only to such extent
and subject to such conditions as may be prescribed:-
employees engaged on urgent work, or in anyemergency work
employees engaged in work in the nature ofpreparatory
or complementary work which must necessarily be
carried on outside the limits laid down for the generalworking in the employment concerned;
employees whose employment is essentially
intermittent;
employees engaged in any work which for technical
reasons has to be completed before the duty is over;
employees engaged in a work which could not be
carried on except at times dependent on the irregular
action ofnatural forces.
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OVERTIME (SEC-14)
Where an employee, whose minimum rate of wages is
fixed under this Act by the hour, by the day orby such a
longer wage-period as may be prescribed, 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 forpart ofan hourso 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.
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WAGES OFWORKERS WHOWORKS FOR LESS THAN
NORMAL WORKING DAY
(SEC-15)
If an employee whose minimum rate 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, save as otherwise hereinafter
provided, be entitled to receive wages fora full normal day. He shallhowever not be entitled to receive the wages for the full normal day
in the following cases:
in any case where his failure to work is caused by his unwillingness
to work and not by the omission of the employer to provide him withwork, and
in such other cases and circumstances as may be prescribed.
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WAGES FOR TWO OR MORE CLASSES OF
WORK (SEC-16)
Where an employee does two or more
classes of work to each of which a different
minimum rate of wages is applicable, theemployer shall pay to such employee in
respect of the time respectively occupied in
each such class of work, calculated at the
minimum rate in force in respect of eachsuch class.
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MAINTENANCE OF REGISTERS AND RECORDS
(SEC-18)
Every employer shall maintain such registers andrecords giving such particulars of employees employedby him:
the work performed by them,
the wages paid to them,
the receipts given by them and
such other particulars and in such form as may beprescribed.
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INSPECTORS
The appropriate government may, by notification in theOfficial Gazette, appoint such persons as it thinks fit to
be Inspectors for the purposes of this Act and define the
local limits within which they shall exercise their
functions.Inspector may, within the local limits for which he is
appointed-
to enter the premises at reasonable hours with orwithout assistants for the purpose of examining such
registers and records ornotices to be kept under the act
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To examine persons found in such premises whom he
believes to be employees
To require any person responsible for giving out-work
and out-workers to give any information
To seize, t o take copies of such register, record ofwages or notices considered relevant in respect of an
offence believed to have been committed by an
employer
To exercise such otherpowers as may be prescribed
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CLAIMS
The appropriate government may, by notification in theOfficial Gazette, appoint authority to hear and decide
forany specified area all claims arising out of :
payment of less than the minimum rates of wages or in respect of the payment of remuneration for days of
rest, or
Forpayment of overtime wages
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APPOINTMENT OF
AUTHORITY
The following may be appointed as an authority tohearand decide the claims:
any Commissioner for Workmen's Compensation or
any officer of the State Government not below the
rank of Labour Commissioner or
any other officer with experience as a judge of acivil court
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APPLICATIONS FOR CLAIMS
Where an employee has any claim of the naturereferred to above the following may present an
application to the authority for hearing and deciding
the claims:
the employee himself, or any legal practitioner or
any official of a registered trade union authorized in
writing to act on his behalf,
or any Inspector,
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PROCEDURE FOR DECIDING
CLAIMS
When any application is entertained, the authority shall hear the
applicant and the employer, or give them an opportunity of being
heard, and after such further inquiry, if any, as it may consider
necessary, may, without prejudice to any otherpenalty to which the
employermay be liable under this Act, direct-
in the case of a claim arising out of payment of less than the
minimum rates of wages, the payment to the employee of the
amount by which the minimum wages payable to him exceed theamount actually paid, together with the payment of such
compensation as the authority may think fit, not exceeding ten
times the amount ofsuch excess;
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in any other case, the payment of the amount due
to the employee, together with the payment of such
compensation as the authority may think fit, notexceeding ten rupees;
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PENALITIES
Any employer who
pays to any employee less than the minimum
rates of wages fixed for that employee's class of
work, or less than the amount due to him under
the provisions of this Act, or contravenes any rule or order made under this
act
shall be punishable with imprisonment for a
term which may extend to six months, orwith fine which may extend to five hundred
rupees, or with both:
Recommended