Professional Documents
Culture Documents
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• To provide minimum wages to the workers working in
organized sector.
• To stop exploitation of the workers.
• To empower the government to take steps for fixing
minimum wages and to revising it in a timely manner.
• To apply this law on most of the sections in organized
sector.
OBJECTIVESOF THE
ACT
Object, Constitutional Validity and Salient
Features
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The norms include those which were recommended by
the Indian Labour Conference in its session held in 1957.
NormsforFixation/Revisionof
(a) 3 consumption units for one earner. MinimumWages
(b) Minimum food requirements of 2700 calories per
average Indian adult.
(c) Clothing requirements of 72 yards per annum per
family.
(d) Rent corresponding to the minimum area provided
for under Government's Industrial Housing Scheme.
(e) Fuel, lighting and other miscellaneous items of
expenditure to constitute 20% of the total Minimum
Wages.
Other parameters
(i) "Children education, medical requirement, minimum
recreation including festivals/ceremonies and
provision for old age, marriage etc. should further
constitute 25% of the total minimum wage."
(ii) (ii) Local conditions and other factors influencing the
wage rate.
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APPLICABILITY
Section I
APPROPRIATE GOVERNMENT
CENTRAL GOVERNMENT – under the authority of Central Government, Railways, mine, oil-field, port or corporation by
central act.
STATE GOVERNMENT – within the territory.
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EMPLOYER
Employer means any person who employs one or more employees in any schedule of employment.
EMPLOYEE
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled
employment in respect of which minimum rates of wages have been fixed. but does not include any member of the
Armed Forces of the Union.
COMPETENT AUTHORITY
The authority appointed by the appropriate Government to ascertain from time to time the cost of living index number
applicable to the employees.
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FIXING OF MINIMUM
RATES OFWAGES
Rate of wages, wage period, methods
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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
• different localities
The rate of wages may be fixed by
• a minimum rate of wages for time work
• a minimum rate of wages for piece work
• a guaranteed time rate
• An overtime rate
The 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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METHODS FOR FIXATION
Section 3 empowers appropriate Government to fix the minimum rates of wages in the scheduled employments.
Revision
Revise the Minimum rates at an appropriate interval not exceeding five years.
Procedure for Fixation/Revision
In Section 5 of the Minimum Wages Act, 1948, two methods have been provided for fixation/revision of minimum
wages. They are Committee method and Notification method.
• Committee Method
Under this method, committees and sub-committees are set up by the appropriate Governments to hold enquiries and
make recommendations with regard to fixation and revision of minimum wages, as the case may be.
• Notification method
In this method, Government proposals are published in the Official Gazette for information of the persons likely to be
affected thereby and specify a date not less than two months from the date of the notification on which the proposals
will be taken into consideration.
After considering advice of the Committees/Sub-committees and all the representations received by the specified date
in Notification method, the appropriate Government shall, by notification in the Official Gazette, fix/revise the
minimum wage in respect of the concerned scheduled employment and it shall come into force on expiry of three
months from the date of its issue.
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Advisory Board
For the purpose of co-ordinating the work of committees and sub-committees appointed under section and advising
the appropriate Government generally in the matter of fixing and revising minimum rates of wages, the appropriate
Government shall appoint an Advisory Board.
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MAINTENANCE OF REGISTERS AND RECORDS
Every employer shall maintain such registers and records giving such particulars of employees employed by 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 be prescribed.
INSPECTORS
• any premises or place where employees are employed
• examine any person whom he finds in any such premises
• seize or take copies of such register
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ENFORCEMENT
Two Levels
• In the Central Sphere, the enforcement is secured through the Inspecting officers of the Chief Labour Commissioner
(Central) commonly designated as Industrial Relations Machinery (CIRM)
• The compliance in the State Sphere is ensured through the State Enforcement Machinery.
They conduct regular inspections and in the event of detection of any case of non-payment or under-payment of
minimum wages, they advise the employers to make payment of the shortfall of wages.
In case of non-compliance, penal provisions prescribed in the Act are taken recourse to.
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Steps taken to reduce disparities
• Five Regional Committees
Eastern Region (6) West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh and Andaman & Nicobar Islands.
North Eastern Region (8) Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and
Sikkim.
Southern Region (6) Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry and Lakshadweep.
Northern Region (9) Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Haryana, Uttar Pradesh,
Uttarakhand, Delhi and Chandigarh.
Western Region (6) Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra & Nagar Haveli and Daman & Diu.
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Schedule of Employments Covered
under Minimum Wages Act, 1948 in
Delhi UT
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Minimum rates of wages in Scheduled Employment in the CapitalTerritory of Delhi
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ThankYou
SHIVANGI GUPTA
215117006
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