The Minimum Wage Act 1948

8/12/2019 The Minimum Wage Act 1948

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Minimum wages Act, 1948


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Objective of the Act

The object of the Act is to secure the welfareof the workers in a competitive market byfixing the minimum rates of wages in certainemployments.

The Minimum Wages Act was passed in 1948enabling the Central and State Governmentto fix minimum rates of wages payable toemployees


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

corporation established by a central act means the

central government [sec.2(b)(i) ].


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THE SECHEDULED [ Secs. 2 (g)]PART 1

1. Employment in any woolen carpet making or shawl

waving establishment.2. Employment in rice mill, flour mill or daal mill.

3. Employment in any tobacco (including bidi making)

manufactory.4. Employment in any oil mill.

5. Employment in any local authority.

6. Employment in any stone breaking or stone crushing.

7. Employment on the construction of roads or inbuilding operation.

8. Employment in any public motor transport.

9. Employment in any bauxite mines.


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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.


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Part II

EMPLOYMENT IN AGRICULTURE:

In any form of farming, includingA. The cultivation and tillage of the soil,

B. The dairy farming

C. The production, cultivation, growing and harvestingof any agricultural or horticultural commodity

D. Any forestry or timbering operations and thepreparation for market and delivery to storage or to

market or to carriage for transportation to market offirm produce.


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Wages [sec. 2 (h)]

Wagesmeans all remuneration, capable of being

expressed in terms of money, which would, ifthe terms of the contract of employment,express or implied, were fulfilled, be payable to

a person employed in respect of hisemployment or work done in suchemployment.

It includes house rent allowances but does notinclude-


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i) The value of Any house accommodation, supply oflight, water, medical attendance or

ii) Any other amenity excluded by general or specialorder of the appropriate government.

iii) Any contribution paid by the employer to anypension 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 defrayspecial expenses entitled on him by the nature of hisemployment or

vi) Any gratuity payable on discharge.


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Employee [sec. 2 (i)].

Employeemeans 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 articlesor materials are given out by another person to bemade 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.


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FIXATION OF MINIMUM RATES OF WAGES (SEC. 3)

The responsibility for fixing the minimum rates of wagesis that of the appropriate government:

a) Shall fix the minimum rates of wages payable toemployees employed in an employment specified inpart I and part II of the schedule.

b) In respect of employees employed in an employmentspecified in part II of the scheduled, instead of fixingminimum rates of wages for the whole state, fix suchrates 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 theminimum risk if necessary.


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MINIMUM NUMBER OF EMPLOYEES.

The appropriate government may refrain from fixingminimum rates of wages in respect of any scheduledemployment in which there are in the whole state lessthan 1000 employees engaged in such employment.

If it has risen to 1000 or more, it shall fix minimumrates of wages as soon as may be after such finding.

[sec. 3 (1-A)].


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Minimum Rates.

The appropriate government may fix-

a) A minimum rate of wages for time work (referred toas a minimum time rate).

b) A minimum rate of wages for piece work (referred toas a minimum piece rate).

c) A minimum rate of remuneration to apply in the caseof such employees employed on piece work for thepurpose of securing a minimum rate of wages on atime work basis (referred to as a guaranteed timerate).

d) A minimum rate whether time or piece rate to applyin substitution for the minimum rate which wouldotherwise be applicable in respect of overtime workdone by employees (referred to as overtime rate).


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Different minimum rates.

In fixing or revising minimum rates of wages may befixed for-

i. Different scheduled employment,

ii. Different classes of the work in same scheduledemployment,

iii. Adults, adolescent, children and apprentices,iv. Different localities [sec. 3 (3) (a)].


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Further in fixing or revising minimum ratesof wages under sec. 3, minimum rates of

wages may be fixed by anyone or more ofthe following wage- periods, namely:

i. By the hour

ii. By the dayiii. By the month or

iv. By such other larger wage period as may be

prescribed.

Mi i f ( 4 )


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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 ofcost of living allowance shall be adjusted at such

interval and in such manner as the appropriategovernment may direct or.

ii. A basic rate of wages with or without the cost ofliving allowance, and the cash value of the

concession in respect of supplies of essentialcommodities at concessional rates, or

iii. An all inclusive rate allowing for the basic rate, thecost of living allowance and the cash value of the

concessions, if any [sec. 4 (1)].

P d f fi i d i i i i


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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 ofboth the procedure is to enable the government toreach a balanced conclusion with regard to fixation ofa minimum wages.

The provision of sec. 5 are summed up as follows:

Government shall follow either of 2 methods to fixminimum rates of wages or in revising minimum rates

of wages:


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a) Appointment of committees.: The appropriate

government shall appoint as many committees andsub-committees as it considers necessary to holdenquires and advice it in respect of fixation orrevision of minimum rates of wages, as the case may

be [sec. 5 (1) (a)]; or


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Publication of proposal in Official Gazette. Theappropriate government shall, by notification in

official gazette, published it proposal for theinformation of persons likely to effected by thefixation or revision of minimum rate of wages. Itshall also specify a date on which the proposal will

be taken into consideration. The dates so specifiedshall not be less than two months form the date ofnotification [sec. 5 (1) (b)].


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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 wageswholly or partly in kind, the appropriate governmentmay, by notification in Official Gazette, authorize thepayment 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 inrespect of supplies of essential commodities atconcessional rates authorized shall be estimated inprescribed manner.


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Payment of minimum rates of wages(sec.12)

Where in respect of any scheduled employmentminimum wages have fixed, the employ shallpay to every employ wages at a rate not lessthan minimum rate of wages fixed for the class

of employees in the employment. Such wagesshall be paid with out any deductions except asmay be authorized. Where the contract rate of

wages is higher, the statutory obligationdoesntcome in play[sec. 12(1)].


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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 government-

a) 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)].


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In relation to the following cases of employees the

condition as may be prescribed;

1. Employees engaged on urgent work, or in anyemergency 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;


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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 theemployee 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)].


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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 orby such longer wage- period as may beprescribed, works over time, the employer shall

pay him for every hour or for part of an hour soworked in excess, wages fixed for over timework under any law of the appropriategovernment, which ever is higher [sec. 14 (1)].

Wages of worker who works less than normal working day


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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.


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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 employeein 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 minimumpiece rate has been fixed under the act, employ

shall pay the wages not less then the minimum time

rate.


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Maintenance of registers and records (sec. 18)

Every employer shall maintain registers and records

giving particulars of1. 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 prescribedhe shall also keep exhibited notices in prescribedform 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

Documents

The Minimum Wage Act 1948