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THE MINIMUM WAGE ACT 1948

PRESENTED BY
KEVAL KANAKHARA

NIDHI KHAJURIYA
HEMALI DAVDA HEENA LAKHANI SWATI KANANI

GUIDED BY PROF. NIRAV VYAS

INTRODUCTION
The

minimum wages act was passed in 1948

enabling the central and state government to fix


minimum rate of wages payable to employees in a selected number of sweated industries.
A minimum wage is that wage which is sufficient to

cover the bare physical needs of worker and his family, that is a rate which has got to be paid to the workers irrespective of the capacity of the industry to pay. If an industry to pay. If an industry is enable to pay to his workman at least a bare minimum wage it

has no right to exist. The act applies to the whole of

OBJECTIVE OF THE ACT


The object of the act is to secure the welfare of the

workers in a competitive market by fixing the


minimum rates of wages in certain employments .
An underdeveloped country faces the problem of

unemployment on a very large scale. Therefore the policy of the act is to prevent the employment of such sweated labours in the interest of general public and so in prescribing the minimum rates.

DEFINITION
Appropriate govt.[sec. 2 b]

It means in relation to any scheduled employment

carried on by or under the authority of the central govt. or a railway administration, or in relation to mine oilfield or major port, or any corporation established by a central act means the central govt.[sec. 2 b (1)]
In relation to any other scheduled employment

Cost of living index number [ sec. 2 d ]

It

means 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.

EMPLOYER [SEC. 2 E]
It means who employees, whether directly or

through another person, or whether on behalf of


himself or any other person, one or more employees in any scheduled employment in respect of which minimum rate of wages have been fixed under this act , and includes , except in sub section (3) of section 26,-

EMPLOYER [SEC. 2 E]
1.

In factory where there is carried on any scheduled employment in respect of which minimum rates of

wages have been fixed under the act. Any person


named as manger of the factory under sec. 7 (1) f of

the factories act 1948.


2.

In any scheduled employment under the control of any govt. in India in respect of which minimum rates of wages have been fixed under the act, the person or authority appointed by such govt. for the supervision

3. In any scheduled employment under any local


authority in respect of which minimum rate of wages have been fixed under the Act. The person appointed by such authority for the supervision and control of employees or where no person is so appointed, the chief executive officer of the local authority. 4. In any other case where there is carried on any

scheduled employment in respect of which minimum


rates of wages have been fixed under the Act. Any person responsible to the owner for the supervision

Scheduled employment [sec 2 (g) ]

It

means an employment specified in the

scheduled in the schedule, or any process or

branch of work forming part of such employment.

Part I

Part II

Employment in agriculture, i.e. 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.

FIXING THE MINIMUM RATES OF WAGES [SEC. 3]


Responsibility of fixing wages [SEC. 3]

The responsibility for fixing the minimum rate of

wages is that of the appropriate Govt


The Govt may fix the minimum rate for the

entire industry or sector or may fix the minimum rate for a particular geographical area in a particular industry
The rates so fixed, will be reviewed by the Govt

at an interval of 5 years

Minimum number of employees

he appropriate government may refrain from

fixing minimum rate of wages in respect of any schedule employment in which there are in the whole state less than 1000 employees engaged in such employment. But if the appropriate

government comes to know that the number of


employees in any scheduled employment has risen to 1000 or more, it shall fix minimum rate of

Basis of minimum rates


Minimum rate of wages for time work Minimum rate of wages for piece work

Guaranteed time rate Overtime rate Different minimum rates

Hourly basis minimum wage


Daily basis minimum wage Monthly basis minimum wage

Where such rates are fixed by the day or

by month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated.

MINIMUM RATE OF WAGES (SEC. 4)


Any minimum rate of wages fixed or revised by the

appropriate

government

in

respect

of

schedule

employment under sec. 3 may consist of


A basic rate of wage and special allowance. The rate of

cost of living allowance shall be adjusted at such intervals and in such a manner as the appropriate government may direct. The rate shall accord with the variation in the cost of living index number applicable to

MINIMUM RATE OF WAGES (SEC. 4)


A basic rate of wage or without the cost of living

allowance and the cash value of the concessions in respect of supplies of essential commodities at

concessional rates.

PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES [SEC. 5]


Sec. 5 provides the method of fixing minimum rate of wages in respect of any schedule employment for the first time or in revising the minimum rate of

wages the appropriate government can follow either


of the two methods :1)

Committee method

2) Notification method

COMMITTEE METHOD(SEC.5(1)(A)
The appropriate government may appoint as many committees and sub-committees as it

considers necessary to hold an enquiry and advice it

in respect of such fixation or revision. After


considering the advice of the committee the appropriate government shall, by notification in the official gazette fix or revise the minimum rate of wages.

COMMITTEE METHOD(SEC.5(1)(A)
The wage rate shall come into force from such

date as specified in the notification and if no date is specified then it shall come into force on the

expiry of 3 months from the date of issue of


notification.

COMMITTEE METHOD(SEC.5(1)(A)
As regards composition of the Committee, Sec. 9
of the Act lays down that it shall consist of persons to be nominated by the appropriate and government in the

representing

employers

employee

scheduled employment, who shall be equal in

number and independent persons not exceeding 1/3


rd of its total number of members. One of such independent person shall be appointed as the

NOTIFICATION METHOD SEC.

5(1)(B)] L
When fixing minimum wages the appropriate
government shall 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 2 months form the date of notification, on

which the proposal will be taken into consideration.

NOTIFICATION METHOD SEC. 5(1)(B)]


The representations received will be considered

by the appropriate government. It will also consult


the advisory board and there after fix or revise the minimum rate of wages by notification in the official gazette. The new wage rates shall come into force from the date specified in the notification. But if no date is specified then the notification shall come into force on the expiry of 3 months from the date of

issue.

ADVISORY BOARD AND CENTRAL ADVISORY BOARD


Advisory board(Sec. 7) : For the purpose of co-coordinating the work of

committees and sub-committees appointed under

Sec. 5 and advising the appropriate government


generally in the matter of fixing and revising

minimum rate of wages, the appropriate government


shall appoint an advisory board.

CENTRAL ADVISORY BOARD(SEC. 8)


The central government shall appoint a central

advisory board for the purpose of advising the


central and state government in the matters of fixing and revising the minimum rate of wages, and for coordinating the works of different advisory boards.

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. Such wages shall be paid without any deduction.

FIXING HOURS FOR A NORMAL WORKING DAY(SEC. 13)


1. Fix the number of hours of work which constitute

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 for payment of remuneration in respect

of such day of rest


3. Provide for payment for work on a day of rest at

a not less than the overtime rate.

RATES OF OVERTIME (SEC. 14)


The employer shall pay employee for

overtime work. Wages for the overtime work fixed


under the act or under any law of the government, whichever is higher. The overtime rate has to be either 1.5 times of the basic salary or 55% of dearness allowance.

WAGES FOR TWO OR MORE CLASSES OF WORK [SEC. 16]


Where an employee does two or more classes of work 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.

MAINTANANCE OF REGISTER AND RECORDS [SEC. 18]


Every employer shall maintain such register and

records giving such particulars of employees employed by him.


Every employer shall keep exhibited in such

manner as may be prescribed.


The appropriate govt. may rules by rules made

under this act.

INSPECTORS [SEC. 19]


The appropriate government may, by notification

in the official gazette, appoint inspectors for the


purpose of the act and define the local limits within which they shall exercise their functions. The powers and functions of the inspectors so appointed are almost similar to those of inspectors appointed under payment of wages act ,1936.

POWERS OF INSPECTORS
1. enter at all reasonable hours, with such assistants as he thinks fit, any premises or place where employees are employed or work is given out to out workers in any scheduled employment. 2. examine any person whom he finds in any such premises or place and who, he has reasonable cause

to believe, is an employee employed therein or an


employee to whom out work is given

POWERS OF INSPECTORS
3. require any person giving out work and any out

workers, to give any information, which is in his power to give, with respect to the names and addresses of the persons to, for and from whom the work is given

out or received, and with respect to the payments to be


made for the work.
4. seize or take copies of such register, record of

wages or notices as he may consider relevant in respect of an offence under the act which he has

CLAIMS (SEC 20)


The appropriate Government may, by notification in the

Official Gazette, appoint an Authority to hear decide for any specified area all claims
(a) arising out of payment of less than the minimum

rates of wages or
(b) in respect of the payment of remuneration of the

days of the rest or for work done on days of rest or


(c) in respect of wages at the overtime rate, to

employees employed or paid in that area.

WHO MAY APPLY?


Where an employee has any claim, any of the following persons may apply to the Authority for hearing and deciding the case: (1) the employee himself,

(2) any legal practitioner or


(3) any official of a registered Trade Union

authorized in writing to act on his behalf or


(4) any Inspector or (5) any person acting with the permission of the

PENALTIES FOR CERTAIN OFFENCES (SEC 22)


Any employer who

(a) pays to any employee less than the minimum rates


of wages fixed for that employees class of work, or

less than the amount due to him under the provisions


of the Act or (b) contravenes any rule or order made under Sec. 13, Shall be punishable wit imprisonment for a term which may extend to 6 months, or with fine which

GENERAL PROVISION FOR PUNISHMENT OF OTHER OFFENCES (SEC. 22A)


Any employer who contravenes any provision of

the Act or of any rule or order made there under shall, if no other penalty is provided for such

contravention by the Act, be punishable with fine


which may extend to Rs. 500.

22B)
No Court shall take cognizance of a complaint against

any person for an offence

(a) involving payment of less than the minimum wages


unless an application in respect of facts consultation such offence has been duly presented under Sec. 20 and granted and the appropriate Government or an officer authorized by it in this behalf has sanctioned

the making of the complaint.


(b) involving contravention of any rule or order made under Sec. 13 or Sec. 22-A except in complaint made

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