The document provides an overview of the Minimum Wages Act of 1948 in India. It defines minimum wage and outlines the objectives of the Act which are to ensure workers earn a living wage, prevent exploitation, and allow the government to set and revise minimum wages regularly. The scope section notes the Act aims to ensure workers' basic needs are met and they can live with dignity. A brief history states how committees in 1943 and 1946 recommended the legislation which was eventually passed in 1948.

1. Minimum Wages
Act, 1948

2. Introduction,
Objective,
Scope,
History,
Sona Shukla
BBA019258

3. Introduction
MINIMUM WAGES HAVE BEEN DEFINED AS “THE MINIMUM
AMOUNT OF REMUNERATION THAT AN EMPLOYER IS REQUIRED
TO PAY WAGE EARNERS FOR THE WORK PERFORMED DURING A
GIVEN PERIOD, WHICH CANNOT BE REDUCED BY COLLECTIVE
AGREEMENT OR AN INDIVIDUAL CONTRACT”.
Minimum wage systems should not be seen or used in isolation, but
should be designed in a way to supplement and reinforce other
social and employment policies. Several types of measures can be
used to tackle income and labor market inequality, including pro-
employment policies, social transfers, and creating an enabling
environment for sustainable enterprises.
Sona Shukla
BBA019258

4. Objectives
Objectives of Minimum Wages Act, 1948: -
 To ensure that the employee can have the basic physical
needs, good health and a level of comfort.
 To ensure a secure and adequate living wage for all Laboure's
in the interest of the public.
 To empower the government to take steps for fixing minimum
wages and to revising it in a timely manner.
 To stop exploitation of the workers.
 To apply this law on most of the sections in organized sector.
Sona Shukla
BBA019258

5. Scope
 To safeguard that the employee has a basic physical
necessity, proper health and comfort.
 Ensure that the labor gets fair wages.
 To ensure that the labor lives a decent life and have a
respectable name in society.
Sona Shukla
BBA019258

6. History
 In 1943 the Standing Labour Committee and the Indian Labour
Conference set up a Labour Investigation committee so as to inquire into
the matters relating to working conditions and minimum wages. In 1946
the Standing Labour Committee suggested a specific legislation
exclusively dedicated to the issue of minimum wages. A tripartite
committee also known as the Fair Wages Committee was established
which aimed to set a policy for “fair wages”. this report, submitted by the
Standing Labour Committee, became the basis for enacting the minimum
wage policy of India.
 The Minimum Wages Act of 1948 was one of India’s first legislations
relating to working rights. The Act laid down detailed procedures for
setting and listing minimum wages in various industries . The fixation of
wages was to be made by appropriate governments (Central and State
levels), for different scheduled employments (based on skilled and
unskilled labour, agricultural and non-agricultural employments, and
minimum wages determined for different industries across various States
in India) under their domain for a specific time period. Sona Shukla
BBA019258

7. Procedure for fixing
and revising wages.
Criteria for fixing
Minimum Wages
Parth Sonawane
BBA019276

8. The interest of workers was kept in mind while passing the
Minimum Wages Act. This legislative protection acts as a
protective cushion from the exploitations of top-level officials.
They often subject workers to peanut wages in exchange for
hard-core labor.
Parth Sonawane
BBA019276

9. WAGES ACT
• According to Section 3 of the Minimum wages act, it is the
responsibility of the appropriate government to set a
specificyardstick.
• Apart from fixing the minimum rate, the appropriate government
shall also conduct periodic reviews within a span of five years of
fixing such rates and revise the same if felt necessary.
• However, according to section 3(1A), the appropriate government
shall not take any such initiative in regards to scheduled
employment having an employee count of less than 1000.
Parth Sonawane
BBA019276

10. Procedure for Fixing and
Revising Minimum Wage
The appropriate government can fix
o A minimum piece rate
o Minimum time rate
o Overtime rate which is the minimum time or piece rate as a
substitution of some other rate which would have been otherwise
applied for overtime work performed by employees.
o Guaranteed time rate which is the minimum remuneration rate
applicable to employees who had been working on piece rate till
now if he is again employed on time rate.
o While revising or freshly fixing the wage rate under the Minimum
wages act
Parth Sonawane
BBA019276

11. • Varying rates of minimum wage shall be fixed for
1. Varying classes of work under the same scheduled employment
2. Different scheduled employment
3. Various localities and
4. Apprentices, children, adolescents, and adults
• Minimum wage rate can either be fixed by one or more of these
wage periods
1. Month
2. Day
3. Hour
4. Any other larger wage-period which is deemed appropriate
Parth Sonawane
BBA019276

12. Section 5 of Minimum Wages Act – Procedure To Fix Or Revise
Minimum Wages
 When the minimum wage rate of scheduled employment is fixed,
or revised for the very first time under this act,
• As many committees and sub-committees can be appointed
as necessary.
• A notification containing the relevant proposals can be
published in the official gazette containing information related to
people who might be affected by the same. A date also needs to be
specified within a span of two months from the date of notification
within which the proposals should be considered.
 The appropriate government can issue a notification in the Official
Gazette after considering the advice of the committee to fix or
revise the minimum wage rate.
Parth Sonawane
BBA019276

13. Criteria for Fixing Minimum
Wages
 According to section 3 of the Minimum Wages Act 1948 “The
Appropriate Government” will fix minimum wages. Appropriate
Government can include local, State and Central
Government. This section sets the rate according to hours,
days, months or any other wage period may be prescribed.
 The rates to be fixed need not be uniform. Diverse rates can be
fixed for various zones or areas. If the wages are fixed according
to section 4 of the Payment of the Wages Act, 1936, the fixing
will be done according to the Act.
Parth Sonawane
BBA019276

14. Wage Committee,
Advisory Board,
Central Advisory
Board
Sweety Kurup
BBA019314

15. Wage Committee
 The wage committee or sub-committee set up by the appropriate government
shall be made up of the same number of representatives of both employees
and employers.
 An independent person with no direct or indirect interest in the schedule of the
employment/work shall be made the chairman of the committee.
 The purpose of the committee is to advise, therefore, the government is not
bound to accept all of its recommendations.
Sweety Kurup
BBA019314

16. Advisory Board
 For the purpose of coordinating the work of [committees and sub-committees
appointed under section 5] 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.
 In the Minimum Wage Act, the procedure for the operation of the Advisory
Board is not prescribed.
 The board will set up its peculiar procedure.
Sweety Kurup
BBA019314

17. Central Advisory Board
 For the purpose of advising the Central and State Governments in the matters
of the fixation and revision of minimum rates of wages and other matters under
this Act and for coordinating the work of the Advisory Boards, the Central
Government shall appoint a Central Advisory Board.
 The Central Advisory Board shall consist of persons to be nominated by the
Central Government representing employers and employees in the scheduled
employments, who shall be equal in number, and independent persons not
exceeding one-third of its total number of members; one of such independent
persons shall be appointed the Chairman of the Board by the Central
Government.
Sweety Kurup
BBA019314

18.  The terms of office of members, other than official members, shall be two years
commencing from the date of their appointment.
Resignation:
a)A member other than the Chairman may resign his office by a letter in writing
addressed to the Chairman.
b)The Chairman may resign his office by a letter addressed to the Central
Government.
Sweety Kurup
BBA019314

19. Consequences Of Non –
Compliance
Safeguards In Payment Of
Minimum Wages
Ann Marie Vadakara
BBA019298

20. Consequences Of Non – Compliance
Any employer who
a) pays to any employee less than the minimum rate of wages fixed for that employee’s class of work or
less than the amount due to him under the provisions of this act or
b) Contravenes any rule or order made under section 13;
Shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may
extend to 500 rupees or both :
Ann Marie Vadakara
BBA019298

21. Safeguards In Payment Of Minimum Wages
Wages in kind (Sec.11):-
Minimum wages payable under this Act shall be paid in cash [Sec.11 (1)].
But where it has been the custom to pay wages wholly or partly in kind, the appropriate government may by
notification in the official Gazette, authorize the payment of minimum wages either wholly or partly in kind
[Sec.11 (20)].
Payment of minimum rates 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.
Ann Marie Vadakara
BBA019298

22. Such wages shall be paid without any deductions except as may be authorized.
Normal Working Hours ( Sec 13):-
For an Adult Workers working in Factories:
 Number of working hours should not exceed 48 hours in a week with a weekly holiday
 The daily hours should not exceed more than 9 hours with 1 hour rest interval
 Provision of compensatory holiday / overtime wages if working on a holiday
Ann Marie Vadakara
BBA019298

23. Overtime Wages (Sec 14):-
 If the person has worked for more than 48 hours in a week then, the excess hours worked will be
treated as Overtime
 Overtime wage rate will be twice of the normal wage rate
Wages for a person who has worked less than normal working hours (Sec 15):-
 Employer could not provide the activities of the job then, the employee is entitled to receive full
salary
 Employee has not worked due to his unwillingness then, the employee is not entitled to receive
full salary. Ann Marie Vadakara
BBA019298

24. Maintenance Of
Registers & Records
Authorities &
Claims
Case Study
Mitesh Singh Suryavanshi
BBA019283

25. Maintenance
Of Registers
& Records
(Sec 18)
– The Minimum Wages Act, 1948 has made it mandatory for the
employers to follow the rules of the act. The employer is liable to fine
and punishment for the conviction of the Act. Therefore, to maintain
all the work done the employer requires the Maintenance of
Registers. Every employee requires to exhibit notices, in the
prescribing form containing particulars in the place of work. Also, the
employer requires to maintain wage books or wage-slips. As may be
prescribed by the appropriate Government and the entries made
therein will have to be authenticated by the employer or his agent in
the manner prescribed by the appropriate Government.
 Every employer must maintain a record register to keep a track of
everything i.e. from the due expenses to the receipts of paid wages.
 The employer shall keep updating the register regularly with all the
new updates. That involves the record of machinery to workers’
expenses.
Mitesh Singh Suryavanshi
BBA019283

26.  The appropriate government administers the record keeping of
the factory occupiers’. Thus it provides the employer with the
wage-book or wage slips. Also, the employer shall be maintaining
the records in the record registers.
 The employers are liable to maintain a record of the working days
an employee is working and also the overtime. This will help him
in paying a fair amount of the wages to the working employees.
The Registers should contain the following particulars: -
 Particulars of the employed person
 The worked performed by them
 The wages paid to them
 The receipts given by them
Mitesh Singh Suryavanshi
BBA019283

27. Authorities
& Claims
(Sec 20-21)
To hear & decide the claims arising under this act
– Appropriate Government appoint any of the following:
 Commissioner for Workmen’s Compensation
 Officer (Labour Commissioner) of Central Government
 Officer (not below the Rank of Labour Commissioner) of State
Government
 Any other Officer (having experience of being a Judge Of Civil
Court or Stipendiary Magistrate
Offences and penalties
– Violation of the act in regards to minimum wages, working hours
and other comes under Central Act as offences, and there is a
penalties of five years imprisonment and fine of Rs. 10000/-
(under section act 22). Any agreement whereby an employee
reduces his right under this act shall be null and void.
Mitesh Singh Suryavanshi
BBA019283

28. Case Study
of Minimum
Wages Act
1948
• Executive Engineer, Rural Works Division, Mayurbhaj vs. Addl.
District Magistrate, Mayurbhanj, 2005 LLR 121 (Ori HC), it was
held that, under the Minimum Wages Act, it is the liability of
principal employer to pay difference of wages to the
employers of the contractor.
• President Cinema Workers Union Affiliated to Bharatiya
Mazdoor Sangh vs. The Secretary Social Welfare and Labour
Department, 2005 LLR 648 (Karn He), it was held that inaction
on the part of the Government in not revising minimum
wages for 13 years will not be justified hence revision be
made within 6 months.
Mitesh Singh Suryavanshi
BBA019283

29. Thank
You