The Minimum Wages Act ,1948

ATHIRA.G.VIJAY REG NO:0805111

PURPOSE & OBJECTIVE

• The objective of this Act is to ensure a minimum subsistence wage for

workers.

• To provide for fixing minimum rates of wages in certain employments.

• The purpose of the Act is to statutorily determine the floor wage in

industry and trade where labor organisation are either nor existent

or ineffective.

• The Act is applicable to the whole of India.

Features of the Minimum Wages Act

• MW Act lays down the principle of fixation of1. Minimum time rate of wages2. Minimum piece rate 3. Guaranteed time rate4. Overtime rate

• The minimum rate of wages consists of :

1. basic rate of wages and a cost of living allowance or

2. basic wage rate with or without the cost of living allowance and the

cash value of the concessions in respect of the essential commodities

supplied at concessional rates.

• Computed by the competent authority at certain intervals . Undertakings controlled

by the union territory and central govt, the Director of Labor Bureau is the

Competent Authority.

• Wages shall be paid in cash although it empowers the appropriate govt to authorize

the payment of minimum wages either wholly or partly in kind in particular cases.

Definitions

1. Adult, adolescent & child: sec 2 (a)

2. Appropriate government sec.2(b)

3. Competent authority: sec2 (c)

4. Cost of living index number : sec 2(d)

5. Employer : sec 2 (e)

6. Scheduled employment : sec 2 (g)

7. Wages : sec 2(h)

8. Employee : sec 2( i)

Fixation of minimum rate of wages (sec 3)

The appropriate government to fix minimum rates of wages. The employees

employed in para 1 or B schedule either at 2 or either part of notification u/s 27.

To make review at such intervals not exceeding five years the minimum rates or so

fixed and revised the minimum rates.

Government can also fix minimum wages for

time work

Piece work at piece rate

Piece work for the purpose of securing to such employees on a time work basis

Overtime work done by employees for piece work or time rate workers.

Minimum Rate of wages(sec.4)

The minimum wages consist: Basic rate of wages and special allowance or cost of

living allowance or

Basic rate of wages with or without cost of living allowance or

All inclusive rates, cost of living allowance and the cash value of the concessions if any.

Procedure for fixation & revision of minimum rates of wages (sec.5)

• The appropriate govt shall1. Appoint as many committees and sub

committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision ,or

2. By notification in the official gazette publish its proposals for the information of persons likely to be affected thereby and specify a date not less than the two months from the date of the notification on which the proposals will be taken into consideration .

COMPOSITION OF COMMITTEES

Section 9

• Each of the committees sub-committees and the Advisory Board shall

consist of persons to be nominated by the appropriate government

representing employers and employees in the scheduled employments who

shall be equal in number and independent persons not exceeding one-third

of its total number of members;

• one of such independent persons shall be appointed the Chairman by the

appropriate government.

• Section 11 - Wages in kind

• Section 12 - Payment of minimum rate of wages

• Section 13 - Fixing hours for normal working day

PAYMENT OF MINIMUM RATES OF WAGES(sec 12)

• The employer shall pay wages to every employee

engaged in scheduled employment at a rate not less

than the minimum rate of wages

• The wages of an employed person shall be paid to him

without deductions of any kind except as may be

authorized .

• If the contract rate of wages is higher than the minimum

rates of wages, the statutory obligation does not come

into play.

Wages for overtime(sec14)

• When a worker works in any scheduled employment

for more than 9 hours on any day or 48 hours in any

week he shall be entitled to wages at one and half

time the ordinary rates of wages in the case of

employment in agriculture and at double the

ordinary rate of wages in any other scheduled

employment..

WAGES OF WORKER WHO WORKS FOR LESS THAN NORMAL WORKING DAY

Section 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

in respect of work done by him on that day as if he had worked for a full

normal working day

WAGES FOR TWO OR MORE CLASSES OF WORK

Section 16

• Where an employee does two or more classes of work to each of which a

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)

• Where an employee is employed on piece work for which minimum

time rate and not a minimum piece rate has been fixed under this

Act the employer shall pay to such employee wages at not less than

the minimum time rate.

Maintenance of registers and Records ( sec.18)

• Every employer shall maintain registers and records giving

particulars of employees employed by him, the work

performed by them , the wages paid to them ,the receipts

given by them .

• He shall also keep the exhibited notices in the prescribed form

containing prescribed particulars in the prescribed manner in

the factory .

• Signatures or thumb of the impression of the employee on

wage book and wage slips shall be obtained by the employer

Inspectors and their powers (sec.19)

• The appropriate govt may, by notification in the official

Gazette, appoint inspector for the purposes of the Act, and

define the local limits within which they shall exercise their

functions.

• The powers and functions of the inspector so appointed are

almost the similar to those of the Inspectors appointed under

the Payment of Wages Act,1936 .

Powers of inspectors

(a)enter at all reasonable hours , any premises or place

where employees are employed in respect of which

minimum rates of wages have been fixed under this Act,

for the purpose of examining any register, record of

wages;

(b) examine any person whom he finds in any such

premises or place and he has reasonable cause to

believe, is an employee

(c) require any person giving out-work and any out-workers, to give any

information, which is in his powers to give, with respect to other

persons to, for whom the work is given out or received, and with

respect to the payments to be made for the work;

(d)seize or take copies of such register, record of wages or notices as he

may consider relevant in respect of an offence under this Act which

has been committed by an employer; and

(e) exercise such other powers as may be prescribed

• Every inspector shall be deemed to be a public servant within the

meaning of the Indian Penal Code ,1860.

Claims (sec.20)

• The appropriate govt. may, by notification in the official Gazette , appoint an authority to hear and decide for any specified area all claims

-arising out of payment of less than the minimum rates of wages,

-in respect of the payment of remuneration for days of rest or for work done on such days

-in respect of wages at the overtime rate

Who may be an Authority??? any commissioner for

Workmen’s compensation, or

Any officer of the central govt. exercising functions as a labor commissioner for any region, or

Any officer of the state govt not below the rank of a labor commissioner , or

Any other officer with experience as a judge of a civil court

Who may apply???

The employee himself…

Any practitioner

Any official of a registered

trade union authorized in

writing to act on his behalf

Any inspector

Any person acting with the

permission of the Authority

Offences and penalties (sec 22)• Any employer who pays to any employee less than the minimum rate of

wages fixed for that employee’s class of work or less than the amount

due to him under the provisions of the Act

– Shall be punishable with imprisonment for a term which

may extend to 6 months or with fine which may extend to

Rs.500 or with both.

• An employer who fails to maintain a register – a record required to be

maintained under the Act

– Punishable with a fine which may extend to Rs. 500

Thank u…..