MINIMUM WAGES ACT 1948

MINIMUM WAGES ACT, 1948MANORANJAN DHAL

Four State/UTs namely Assam, Kerala, Meghalaya and Puducherry have added new employments to the scheduled employment.Maximum numbers of scheduled employments (105) - Assam and the minimum number (1) was reported from Mizoram.In case of Union Territories, maximum numbers of scheduled employments were reported from Daman and Diu (72) and the minimum were reported from Andaman &Nicobar Islands (7).WORKING OF MW ACT, 1948 FOR 2013There exists no uniformity in the wage structure across the various States/UnionTerritories as some states pay consolidated wages (Basic + Dearness Allowance) and the others report D.A. as a separate component.The Range of wages is upto Rs. 382.50. It is zero in case of all the States/U.T.s which are paying equal wages to all the unskilled workers in all the scheduled employmentswhereas it is maximum in case of Kerala i.e. Rs. 382.50.

WORKING OF MW ACT, 1948 FOR 2013WORKING OF MW ACT, 1948 FOR 2013Highest minimum wages are being paid by the State of Kerala which stood at Rs.532.50 in the scheduled employment River Sand Collection, its loading and Unloading (Southern Region) and The lowest Rs. 55.00 are being paid in the scheduled employment Agriculture (Yanam region) in Puducherry.Total of 376 different types of scheduled employments were reported where the minimum wage rates have been fixed by the States/Union Territories/CLC.Among the reporting establishments, the response rate was lowest for the state ofAndhra Pradesh (as low as 99 returns out of 137157 units) and highest in the state of Nagaland (cent percent out of 100 units).

WORKING OF MW ACT, 1948 FOR 2013The highest numbers of inspections (103717) were reported from the state of Tamil Nadu and the lowest numbers were reported from Dadra and Nagar Haveli (48).The highest numbers of irregularities were detected by the C.L.C. (134070) in the central sector and the lowest (25) were observed in Dadra and Nagar Haveli.The highest numbers of prosecutions were launched by C.L.C (5291) in the central sector and the lowest numbers of prosecutions launched were reported by RajasthanThe highest numbers of claims were preferred by Andhra Pradesh (5283) and thelowest were preferred by Dadra and Nagar Haveli (1).WORKING OF MW ACT, 1948 FOR 2013CONTENTSType of Wages BackgroundDefinitionsFixation of minimum wagesProcedure for fixing and revising minimum wagesCentral Advisory BoardInspectorClaimPenaltiesLiving WageAppropriate for normal need of the average employeeProvide not merely for absolute essentials such as food, shelter and clothing but for a condition of frugal comfort essential by current human standardMatrimonial condition and the maintenance of about five persons in a home.Education of children, protection against ill health, requirements of essential social needs, and a measure of insurance such as old age

Fair WageStands in between the minimum wage and living wageFair wage is settled above the minimum wage and goes through the process of approximating towards living wageLower limit of fair wage is minimum wage where as the upper limit is the capacity of the industry to payFactor like the productivity of labour, prevailing rate in similar area and occupation, level of national income, place of the industry in the economy of the country are considered in fixing fair wageMinimum wageProvide for a bare subsistenceSufficient to cover the bare physical needs of a worker and his family.To be paid to the workers irrespective of the capacity of the industry to payStatutory minimum wageMust be sufficient for preservation of the efficiency of the workersBackgroundMinimum wages fixing machinery convention, Jeneva 1928Whitley CommissionILC 1946Article 43 of the Constitution ScopeExtends to the whole of IndiaEmpower the Central and State Governments to fix minimum wageReview the rates fixed at intervals within five yearsApply with equal force to industrial establishments not included in the schedule.WagesAll 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 person employed in respect of his employment or of work done in such employment and includes house rent allowance.Excludes- house accommodation, supply of light, water, medical attendance, contribution towards Pension Fund, Provident Fund, Gratuity, Travelling AllowanceEmployeeWho is employed for hire or reward to do any work, skilled or unskilled, manual or clerical in a schedule employment in respect of which minimum rates of wages have been fixed.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, adopted or processed for sale for the purpose of trade or business.Statutory Minimum WageBasic rate of wages and special allowanceBasic wage with or without the cost of living allowance and the cash value of allowance in respect of essential commodities at concessional rates.Fixation of Minimum WagesAppropriate government has to fix the minimum wageGovernment may refrain from fixing wage in an employment if the number of employees is less than 1000 in the whole StateGovernment has to fix and revise the wage in-Different schedule, different class, adult, adolescent, children and apprentice, different localities, by the hour/day/monthFixing of Minimum wage is not affected byDifficulties of the employerFinancial capacity of the employerEmployer company has incurred lossDifficulty to import raw materialsProcedure for fixing or revising Minimum WagesAppoint committees and sub-committeesCommittees to hold enquiries and advise the governmentMinimum wage rate comes into force after expiry of three months of the notificationMinimum wage rate depends upon the prevailing economic conditions, the cost of living in the place, the nature of the work, the condition in which the work is performed

Central Advisory BoardAppointed by Central GovernmentTo advise central and state government for fixation and revision of minimum wagesPersons to be nominated by the central government representing employers and employees in the scheduled employmentRepresentatives are equal in numberIndependent persons not exceeding one-third of the total membersOne independent person as ChairmanFixing Hours of Working dayAppropriate government fix the normal working dayIntervalRest dayOvertimeWage in kind InspectorAppointed by appropriate governmentMay enter into premisesExamine any personClaimArising out of payment less than minimum wage rateRemuneration for daysOver timeAuthority to decide Claim- Commissioner for Workmens Compensation- Labour Commissioner- Judge of a Civil Court- Stipendiary Magistrate

Who can Claim?The employeeAny legal practioner authorised in writing to act on his behalfAny official of a registered trade unionAny inspectorAny person acting with the permission of the authorityCompensationCompensation should not exceed ten times the amount of excessPenaltiesPaying less than minimum wage- imprisonment up to 6 months and fine up to Rs. 500 /-(Swaraj Ashram, Kanpur Vs. State of UP and others 2004 I LLJ 80)Merely because an establishment is running on no profit motive cannot constitute a ground for exclusion from the purview of MW Act.The financial condition of an establishment cannot also be a ground for its exclusion from the purview of the Act.The definition of employee u/s 2(1) of the Act includes an out worker who weaves cotton in his home and supplies finished products to a society financed by the Khadi & Village Industries Commission.