The Minimum Wages Act of 1948 is a key Indian labor law aimed at ensuring fair wages for skilled and unskilled workers, with provisions for setting and revising minimum wage rates every five years. It seeks to provide a decent standard of living through legal frameworks enforced by advisory boards and wage committees, aiming to prevent exploitation and support welfare. The act includes specifications on wage payment, working hours, and penalties for violations like underpayment.

1. MinimumWages
Act,1948 Presented By
Ishvinder Kaur
MBA – 3rd Sem
Roll No.- 202118

2. Introduction
to
theact
 The minimum wages act 1948 is an act of parliament
concerning Indian Labor Law that sets the minimum
wages that must be paid to skilled and unskilled labors.
 India introduced the Minimum Wages Act in
1948,giving both the Central government and State
government jurisdiction in fixing wages.
 The Act lays down the minimum rates of wages for
both skilled and unskilled labour and aims to provide a
decent standard of living for them.
 Payment of wages below the minimum wage rate
amounts to forced labor.
 Wage boards are set up to review the industry's
capacity to pay and fix minimum wages such that they
at least cover a family of four's requirements of
calories, shelter, clothing, education, medical
assistance, and entertainment.

3. History
of
theact
 The initiative by Shri K.G.R. Chaudhary in 1920 set up boards for
determination of wages.
 The International Labor Conference adopted convention no. 26 and
30 in 1928 relating to wage fixing machinery in trades or parts of
trades.
 A Minimum wage bill was introduced in the Central Legislative
Assembly on 11.04.1946 and came into force with effect from
15.03.1948
 The act was to secure the welfare of unorganized workers in certain
industries by fixing the minimum rates of wages.

4. What
is living wage
?
Living wage
The level of income for a worker
which will ensure a basic standard
of living including good health,
dignity, comfort, education and
provide for any contingency.

5. What is
fair wage?
FAIR WAGE
Any wage paid to the employees that are more than
the minimum wage is known as a fair wage. It is the
wage that seeks to maintain a level of employment in
the industry and also looks after the industry’s
capacity to pay sufficient remuneration to the
employees.
 Fair wage, according to the committee on Fair Wage,
is the wage which is above the minimum wage but
below the living wage.
 It is the wage considered fair and agreed upon by
both the parties.

6. What
is minimum
wage ?
Minimumwage
 It has 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.
 The purpose of minimum wages is to protect workers
against unduly low pay.

7. Objectivesof
theact
1.To fix the minimum rates of wages that are to be
provided to the employees and revise such rates of
wages every five years.
2.To secure an adequate living wage for all the
laborers in the interest of the public.
3.To fix the daily working hours of the employees.
4.To prevent exploitation of the workers by the
employers.
5.To ensure that the labourers can maintain a decent
standard of living.
6.To provide basic physical needs, good health and a
level of comfort to the employees.

8. Objectives
of
theact
C0nt.
7. To penalise the employers when they fail to provide
minimum wages to the workers.
8. To establish advisory boards to regulate and administer
the provisions of the Act.
9. To lay down the powers and duties of the inspectors for
the purposes of this Act.
10. To prevent any employer from wrongfully infringing
the right of any employees.
11. To establish appropriate authorities where the
employees can seek redressal when the employer has
failed to pay the daily wage.
12. To authorise the Central and state governments to
make rules and regulations for the purposes of this Act.

9. Section 3
minimum
rates
ofwages
 The appropriate government may fix:
1.The minimum rate of wages for time work,
2.the minimum rate of wage for piece work,
3.a minimum rate of remuneration to apply in the case of employees
employed on piece work for the purpose of securing to such employees
a minimum rate of wages on a time work basis,
4.a minimum rate of wage to substitute the for the minimum rate which
would otherwise be applicable, in respect of overtime work done by
employees.
 The rate of wages shall be revised every five years.
Different minimum rates of wages may be fixed for; different classes of
work, different scheduled employment, different localities, different age
groups, etc.
Minimum wages may be fixed by the wage period such as; by the hour,
by the day, etc.

10. Section 4
Different rates of
wages
 Basic + Special allowance ( which varies with
the cost of living index)
 Basic + Cash Value of concessional supply of
materials like food, clothes, etc.
 An all inclusive rate which includes Basic +
Special allowance + Cash value

11. Section
5
Fix&Revisethe
minimumwages
 Appropriate government may,
 establish as many committees and subcommittees
necessary to hold enquiries, consisting equal number of
members of:
a) Employees
b) Employers,
c) Independent persons.
 by notification to the Official Gazette publish its
proposal for the information

12. Procedureof
fixingminimum
wage
Recommendation of advisory board for different class
( Skilled, unskilled, Clerk, Supervisor)
Publish recommendations in National Publications
( for public comments/representations from Trade Unions)
Hearing of the representatives
Notification of Minimum Wages

13. Section7
Section8
Advisory Board
 Appointed by appropriate government.
 To coordinate the work of committees and sub
committees appointed under Section 5.
 To advise appropriate government in fixing and
revising minimum rates of wages.
Central Advisory Board Consists of
 Members to be nominated by the Central Government
representing employers and employees in the scheduled
employment, who shall be equal in number, and
 Independent persons not exceeding one-third of its total
number of members. One such member shall be
appointed as the Chairperson by the Central Advisory
Board.

14. Section
9
Composition
of
Committees
Each of the committee, sub committee,
advisory board shall consist of :
a) Persons to be nominated by appropriate
government.
b) Individuals appointed to these committees
shall be representatives of employers and
employees in scheduled employments and
shall be equal in number.
c) an independent person to be the Chairman
of the committee.

15. Section 11
Wages
in
kind
 Minimum wages under this Act shall be paid in cash.
 The appropriate government under necessary
circumstances by notification to the Official Gazette
a) authorise the payment of the minimum wages
either wholly or partly in kind.
b) authorise a provision for the supply of essential
commodities at concession rates.
 The cash value of wages and the concession rates
shall be authorised in the prescribed manner stated
under the Act.

16. Section12
Paymentof
minimumwages
 The employer shall pay the minimum rate of wages fixed to
every employee working under him within such time and
manner prescribed under the Act.
 The minimum wages had to be paid without any deductions
other than statutory deductions
 Payment of wages less than minimum wages on the ground
of less performance or output is illegal.

17. Section 13
Fixinghoursof
work
For an adult working in a factory:
 Number of working hours should not increase
48 hours in a week with a weekly holiday.
 The daily hours should not exceed 9 hours with
1 hour rest interval.
 Provision for Compensatory holiday/overtime
wages, if working on holiday.

18. Section14
over
time wages
 If the person has worked more than 48 hours in
a week then the excess hours worked will be
treated as overtime.
 Overtime wages will be twice the normal wage
rate.

19. Section15
workedless
thanhours
 If an employee has worked less than the required number
of hours constituting a normal working day they shall be
entitled to,
 receive wages in accordance with work done by him on
that day as if he has worked a full day.
 In case the employer could not provide the activities of
the job then, the employer is entitled to receive full salary.
 If employee has not worked due to his unwillingness then,
he is not entitled to receive full salary.

20. Section
18
Records
tobemaintained
The registers should contain the
following particulars :
1) particulars of employed
persons
2) the work performed by them
3) the wages paid to them
4) the receipts given by them

21. Section 20
Claims
 A labour commissioner or any other appointed
authority is authorized to hear claims regarding
non payment of minimum wages.
 Any aggrieved person may apply to the
authority for settling his claims within 6 months.

22. Section22
Penalties
Offence
Payment of less than
minimum wages to
employee
Punishment
Imprisonment which
may extend up to 6
months or Fine which
may extend up to Rs
500/- or both