THE MINIMUM WAGES ACT,1948

Minimum Wages Act, 1948 

Introduction to the act

The aim of any legislation is to protect workers. Indian labor is by and large is illiterate and not organized to protect themselves In our Developing country, exploitation of workers is common. Hence, there was a need for the act to protect workers from exploitation

Object & Scope 

• To secure the welfare of the workers in a competitive market by providing for a minimum limit of wages in certain employments
• To prevent the exploitation of workers

• To fix minimum wages which the employer must pay to workers

Concept of minimum wages 

Wages means all remuneration capable of being expressed in terms of money, if the terms of employment were fulfilled, be payable to a person employed in respect of his employment which includes house rent allowance

Minimum wages is not defined in the act, as it is literally impossible to pay uniform wages for all industries throughout the country, on account of different conditions and locations of industries

WAGES DOES NOT INCLUDE 

• Any house accommodation, supply of light, water
• Provident fund
• Traveling allowance
• Special expenses regarding the work
• Gratuity

 LIVING WAGE 

• Appropriate wages for the normal needs of the average employee who lives in a civilized society
• Living wage must provide essentials such as food, shelter, clothing, comforts like children education, protection against ill health, essential social needs, old age needs

FAIR WAGE 

• Relates to fair workload and the earning capacity
• Prevailing rates of wages in the same or similar industries in the neighboring areas
• Present economic conditions 

APPLICABILITY OF THE ACT 

• It extends to whole of India
• It came to force from March 15^th 1948
• It was amended in 1954, 1957,1961,1982,1983,1987,1990,1993

FIXATION OF MINIMUM WAGES 

• Minimum rate for time work , minimum time wage‘
• Minimum rate for piece work ,minimum piece rate‘
• Minimum rate for ,time-piece work‘
• Overtime wages
• Minimum wages should be revised every two years or on a rise of 50 points in the consumer price index (CPI)

Procedure for fixation and revision of minimum wages 

• Appropriate government shall appoint a committee and sub-committees to hold enquiries and advise in respect of fixation and revision of wages
• Or Gazette Official publishes proposals for minimum wages
• Government shall revise the wages on the expiry of 3 months from the date of issue of the order
• Government also seeks the advice from the advisory board which comprises of equal number of employers and employees

FIXING HOURS OF WORK 

• A working day should include one or more specified intervals
• Working hours shall be nine hours
• Normally Sunday is the rest day
• But any other day can also be a rest day accordingly
• Extra wages for work more than specified hours-overtime wages
• Wages for two or more classes of work should be paid

Other provisions 

• Wages for overtime
• Wages for less than normal working day in case of illness
• Wages for 2 or more types of work to be paid in respect of the time spent
• Maintenance of registers and records

AUTHORITIES UNDER THE ACT-Inspectors 

• Factory inspector is empowered to examine the records of wages paid to the employees
• Government is empowered to make rules to regulate the procedure of carrying out the act
• Claims by the employees are decided in the court regarding deductions
• Recovery of amount can be done by the court regarding fines
• Claims
• For less payment than minimum wages
• Payment for work on rest days
• Overtime wages

• Any other claims
• Claims are decided by labor officer or Compensation commissioner

Who can claim 

• Employee himself
• Lawyer(legal practitioner)
• Trade union official
• Inspector
• Any authorized person
• Claims should be applied within 6 months of receiving wages
• Authority decides the case after hearing from both the parties

Penalties 

• An employer who pays less than the minimum wages may be punished
• With 6 months jail or Rs 500/- or both
• An employer who does not maintain the records properly is punishable to a fine of Rs 500/
• Power to make rules
• Appropriate government has power to make/amend rules related with the minimum wages act