Presentation

on
Minimum Wages Act, 1948

Presented by:
Jeenal Anam
Roll No. 7

APPLICABILITY OF THE ACT

Applicable to whole India.

Central government of 1948 and the rules made there will be applicable
and the directions given in the act should be followed.

As per the Central Government Act , the state government have been
empowered to add schedules to give directions.

DEFINITIONS

ADULT means a person who has completed his 18 th year of age.

ADOLESCENT- means a person who has completed his 14 th year of age a
but not completed his 18th year.
EMPLOYEE Employee means 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.
APPROPRIATE GOVERNMENT- in relation to any scheduled
employment carried on by or under the authority of the Central
Government or a railway administration, or in relation to a mine, oilfield or
major port, or any corporation established by a Central Act.

CONTD.

COST OF LIVING INDEX Cost of living index number , in relation

to employees in any scheduled employment in respect of which minimum
rates of wages have been fixed , means the index number ascertained and
declared by the competent authority by notification in the official gazette
to be the cost of living index number applicable to employees in such
employment.

WAGES means all remuneration, capable of being expressed in terms of

money, which would, if the terms of contract of employment, express or
implied, were fulfilled, be payable to a person employed in respect of his
employment or work done in such employment and it includes house rent
allowance.

SCHEDULED EMPLOYMENT

Any employment specified in Part I and Part II of the schedule

provided in minimum wages act.

Part I :- specifies certain types of industries.

Part II :- deals with the persons working in Agriculture , Horticulture and

Live stock or Poultry.

PART I

Employment in any woollen carpet making or shawl weaving

establishment.
Employment in any rice mill , flour mill , or dal mill.
Employment in any tobacco manufactory.
Employment in any plantation , that is to say , any estate which is
maintained for the purpose of growing cinchona , rubber , tea or coffee.
Employment in any oil mill.
Employment under any local authority.
Employment on the construction or maintenance of roads or in building
operations.
Employment in stone-breaking or stone-crushing.
Employment in any lac manufactory.
Employment in any public motor transport.

CONTD.

Employment in magnesite mines covered under the Mines Act , 1952.

Employment in white clay mines.
Employment in steatite.
Employment in ochre mines.
Employment in asbestos mines.
Employment in fire clay mines.
Employment in chromite mines.
Employment in quartizite mines.
Employment in quartz mines.
Employment in silica mines.
Employment in graphite mines.
Employment in felspar mines.

CONTD.

Employment in laterite mines.

Employment in dolomite mines.
Employment in redoxide mines.
Employment in wolfram mines.
Employment in iron ore mines.
Employment in granite mines.
Employment in rock phosphate mines.
Employment in hematite mines.
Employment in marble and calcite mines.

CONTD.

Employment in any mica works.

Employment in tanneries and leather manufactory.
Employment in gypsum mines.
Employment in barytes mines.
Employment in bauxite mines.
Employment in manganese mines.
Employment in the maintenance of buildings and employment in the
construction and maintenance or runways.
Employment in china clay mines.
Employment in kyanite mines.
Employment in copper mines.
Employment in clay mines covered under the Mines Act , 1952.

PART-II

Employment in agriculture , that is to say , in any form of farming ,

including the cultivation and tillage of the soil , dairy farming , the
production , cultivation , growing and harvesting of any agricultural or
horticultural commodity , the raising of livestock , bees or poultry , and
any practice performed by a farmer or on a farm as incidental to or in
conjunction with farm operations ( including any forestry or timbering
operations and the preparations for market and delivery to storage or to
market or to carriage for transportation to market of farm produce ).

FIXING OF MINIMUM RATE OF WAGES BY

APPROPRIATE GOVERNMENT

MINIMUM TIME RATE The minimum wages paid for time work.

MINIMUM PIECE RATE The minimum wages paid for piece work.

GUARANTEED TIME RATE Those employed under the scheme of

piece work but , guaranteed will be on the basis of time.

OVERTIME RATE Time rate of piece rate will apply were the employee
has worked overtime over and above his normal working hours.

CONTD.

1.
2.
3.
4.

.
1.
2.
3.
4.

MINIMUM RATE OF WAGES WILL BE FIXED FOR

Different scheduled employments.
Different classes of work in the same scheduled employment.
Adults , adolescents , children and apprentices ; and
Different localities.
WAGES PERIODS FIXED UNDER MINIMUM RATE OF WAGES
By the hour.
By the day.
By the month , or
By such other larger wage-period as may be prescribed.

PROCEDURE FOR FIXING AND REVISING MINIMUM

WAGES(SEC.5)

Committees and sub-committees appointed by the appropriate authority

will hold enquiries, collect information and will submit the proposal for
revision of minimum wages to the appropriate authority.

The appropriate authority after perusing the proposal will publish its
decision by notification in the official gazette and the specific date from
which the revised wages has to be paid.

The specific date should not be less than 2 months from the date of
notification.

COMMITTEES OR BOARD

ADVISORY BOARD (SEC. 7) - An advisory board will be appointed by

the appropriate government for cordinating the work of committees and
sub-committees and also the advisory board will provide its valuable
suggestions and recommendations to the appropriate government.

CENTRAL ADVISORY BOARD (SEC. 8) The central advisory board

consisting of the persons nominated by the central government
representing employers and employees in the scheduled employments who
shall be equal in numbers. The central government will nominate
independent persons 1/3rd of the total number of members. The
independent person will be the Chairman of the Board.

WAGES IN KIND ( SEC. 11)

Minimum wages shall be paid in cash [ Sec. 11(1) ].

Where it is customary that, minimum wages has to be paid partly in cash

and partly in kind or wholly in kind , in those circumstances the
appropriate government by issuing a notification in the official gazette will
authorize for payments of wages in kind [Sec. 11(2) ].

The appropriate government may also by notification in the official gazette

authorize the provision of the supply of essential commodities at
concessional rates [Sec. 11(3) ].

PAYMENT OF MINIMUM RATE OF WAGES (SEC. 12)

Where in respect of any scheduled employment minimum wages have

been fixed , the employer shall pay to every employee wages at a rate not
less than the minimum rate of wages fixed for that class of employees in
the employment . Such wages shall be paid without any deductions except
as may be authorized. Where the contract rate of wages is higher, the
statutory obligation does not come into play [ Sec. 12(1) ] .

FIXING HOURS FOR A NORMAL WORKING DAY

(SEC. 13)

In regard to any scheduled employment where minimum rates of wages

have been fixed , the appropriate government may-

1.

Fix the number if hours of work which constitutes a normal working day ,
inclusive of one or more specified intervals .

2.

Provide for a day of rest in every period of 7 days and the payment of
remuneration in respect of such day of rest .

3.

Provide for payment for work on a day of rest at a rate not less than the
overtime rate [ Sec. 13(1) ] .

EXCEPTIONS TO NORMAL WORKING HOURS.

The normal working hours need not be adhered in the following cases-

1.

Where the persons were employed to meet emergency or urgent work.

2.

Whose employment is dependent on natural factors.

3.

Employees those who have not completed their duty in time for technical
reasons.

4.

Where the nature of duties has to be necessary carried out beyond normal
working hours.

OVERTIME WAGES (SEC. 14 )

Where an employee , whose minimum rate of wages is fixed under this

Act, by the hour , by the day or by such a longer wage- period as may be
prescribed , works overtime , the employer shall pay him for every hour or
for part of an hour so worked in excess , wages at the rates fixed for
overtime work under the Act or under any law appropriate government in
force , whichever is higher [ Sec. 14(1) ] .

WAGES OF WORKER WHO WORKS FOR LESS THAN

NORMAL WORKING DAY (SEC. 15)

Where an employee worked on any day less than the normal working
hours due to the fact that , employer could not provide the activities of the
job then , the employee is entitled to receive full salary.

Where an employee worked on any day less than the normal working
hours due to the fact that, employee has not worked due to his
unwillingness then, the employee is not entitled to receive full salary.

CONTD.

WAGES FOR TWO OR MORE CLASSES OF WORK (SEC. 16)- Where

an employee does two or more classes of work to each of 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 the act , the employer shall
pay to such employee wages at not less than the minimum time rate.

MAINTENANCE OF REGISTERS AND RECORDS (SEC.

18)

1.
2.

3.
4.

Employer should maintain a register of employees containing the details

such as the name, address , fathers name, age, gender, the work
performed, the wages paid to them.
The other registers to be maintained are :Register of fines.
Register of deductions for damage/ loss caused to the employer, by the
neglect / default of the employed persons.
Overtime register of workers.
Muster-roll.
The register shall be preserved for a period of 3 years after the date of last
entry made therein.

INSPECTION

The appropriate government through notification in the official gazette

appoint inspectors and also define the local limits for such inspectors.
The inspectors have right to enter the premises of employees at all
reasonable hours and have right to verify all the records as required to be
maintained by law.
The inspectors have right to examine any persons they find in the
premises.
Inspectors have right to enquire about the work given to workers and have
right to get information from the employers about the payment of wages,
etc.
The inspectors have right to cease or take copies of registers maintained by
the employer in case , the Inspector feel that the employee has committed
any mistake.