• History of the act
• Enforcement of act
• Related terms
• Schedule employment
• Fixation of minimum rate of wages
• Procedure of minimum rate of wages
• Advisory board & central advisory board
• Safeguard in payment of wages
• Case study, newspaper articles & field visit
• Wages [Sec. 2(h)]. ‘Wages’ means all the remuneration, capable of
being expressed in terms of money, which would, if the terms of the
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. Hence,
• Minimum wages are the lowest wage permitted by law or by a
HISTORY/OBJECT 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.
• The initiative started with the resolution placed by one Shri
K.G.R.Choudhary in 1920 of minimum wages in each
• In a country like ours where the number of unemployed
people is very large, the legislators realized that if the rule
of market is allowed to prevail, it could be difficult to
prevent sweating or exploitation of labour through
payment of unduly low wage. It was to prevent this
position that the Act was enacted and specific provisions
were made for determining minimum wages in respect of
the scheduled employments.
1. Adult: 18 above
2. Adolescent: 14th year of age but not 18th year
3. Child: Under 14th year of age
4. Appropriate Government:
5. Competent authority
6. Cost of living index number
9. Scheduled employment
MINIMUM RATE OF WAGES
• The National Floor Level of Minimum Wage has been increased to Rs
100 per day from Rs 80 per day (which was in effect since 2007).
Recently with effect from April 1, 2011 the National Floor Level of
Minimum Wage has been raised to Rs 115 per day.
• In order to reduce disparities between wages in neighboring states
and bring comparability the Central government has set up 5 regional
committees for harmonization of minimum wages.
• Disclaimer : Minimum Wages have been provided by the Labour
Departments of respective states. All efforts have been made to update the
minimum wage data on a regular basis. However, there might be
REGION STATES COVERED
EASTERN REGION West Bengal, Orissa, Bihar, Jharkhand,
Chhattisgarh & Andaman and Nicobar islands.
NORTH EASTERN REGION Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Tripura & Sikkim
SOUTHERN REGION Andhra Pradesh, Karnataka, Kerala, Tamil Nadu,
Pondicherry & Lakshadweep
NOTHERN REGION Punjab, Rajasthan, Himachal Pradesh, Jammu &
Kashmir, Haryana Uttar Khand, Delhi &
WESTERN REGION Maharashtra, Gujarat, Goa, Madhya Pradesh,
Dadra & Nagar Haveli and Daman and Diu
FIXATION OF MINIMUM WAGES
The minimum rate of wage is fixed on the following basis as given
by 15th Indian Labour Conference:-
• 3 consumption units for one earner.
• Minimum food requirements of 2700 calories per average indian
• Clothing requirements of 72 yards per annum per family.
• Rent corresponding to the minimum area provided for under
Government's Industrial Housing Scheme.
PROCEDURE IN FIXING OF WAGES
• In Section 5 of the Minimum Wages Act, 1948, two
methods have been provided for fixation/revision of
minimum wages. They are :-
• Committee method
• Notification method.
ADVISORY BOARD AND CENTRAL
• Advisory board:- For the purpose of co-ordinating the work of the
committees and sub-committees advising the appropriate
government on the matters of fixing and revising the minimum rates
of wages, the appropriate government shall appoint an advisory
• Central advisory board:- The central government shall appoint the
central advisory board for co-ordinating the advisory board and
advising central and state government on the matters of fixing and
revising the minimum rates of wages and other matters under the
• Main decision is made by the Appropriate Government (i.e.The
State or the Central Government)
SAFEGUARDS IN PAYMENT OF MINIMUM
• Wages in kind
• Payment of minimum rate of wages
• Fixing hours for normal working day
• Rates of overtime
• Wages for worker who work less than normal time
• Wages for two or more classes of work
• Minimum time rate wages for piece work
• Maintenance of registers and records
ENFORCEMENT (INSPECTORS AND
Inspectors :- The appropriate government by the notification of the
official gazette may appoint the inspectors for the purpose of act and
define the local limits within which they shall exercise their functions.
Powers of inspectors:-
• Examine registers anytime,
• Examine any person,
• Seize or take copies of registers,
• Demand for any document from any person.
Claims :- The appropriate government by the notification of the official
gazette may appoint an authority to hear and decide for any specified
area claims –
• (a)arising out of payment of less than minimum rate of wages,
• (b)in respect of payment of remuneration on the days of rest
• (c)in respect of wages at overtime rate.
The authority to hear the claim and make decision, may be given to any
officer of central or state government or with the experience as a judge
or any commissioner for workmen compensation
BIBLIOGRAPHY AND WEBLIOGRAPHY
• Industrial law by nd kapoor
• Times of India
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