This document summarizes the key aspects of the Minimum Wages Act of 1948 in India. It outlines the scope of the act, definitions of important terms like employee, employer, and wages. It describes the process of fixing minimum wage rates by appropriate state governments through committees every 5 years. It also covers important provisions around payment of wages, working hours and overtime rates, maintenance of records, and penalties for non-compliance. The Minimum Wages Act aims to protect workers in India by mandating minimum wage rates for scheduled employments.

1. Minimum
Wages
Act,
1948

2. Scope of the Act [section 1]
• This Act Extends to whole of India
• The Act is applicable only for those employments,
which are notified and included in the schedule of
the Act by the Appropriate government and any
other employment which may be added to the
schedule by the Appropriate Govt. by notification.
• Schedule is divided into Part I and Part II
• If a state has less than 1000 workers, it is not
mandatory to fix the minimum wage rate.

3. Definitions [section 2]
Employee :
Subsection (i) of section 2 deals with definition
of employee which states
• Employed for hire or reward to do any work,
skilled or unskilled, manual or clerical in a
scheduled employment.
• Includes outworker for whom work is
outsourced with respect to the trade.
• Excludes any member of armed forces.

4. Employer: [section 2(e)]
• Who employs other person either directly or
indirectly through other person in a schedule
employment
• Includes
- Manager in case of factory
- HOD in case of government establishment
- CEO in case of Local authority
- Supervisor and person with such control in case
of other establishments
• Excludes employers family members.

5. Wages: [Section 2(h)]
• All remuneration capable of being
paid in money terms for work
done if terms of contract were
fulfilled
• consist of Basic + Dearness
Allowance + House Rent
Allowance
• Every 5 years, basic rates of every
industry are decided by Minimum
Wages Committee
• Dearness Allowance changes every
six months and is decided by
Government

6. Fixing of minimum rate of wages
[Section 3]
The Appropriate Government:
• Shall fix minimum rates of wages for an
employment specified in Part I or Part II of Schedule
& added by notification in official gazette
• May fix rates for a part of the state or for any specific
class or classes instead of fixing minimum rate of
wages for whole state
• Shall review and revise at intervals not exceeding 5
years the minimum rates of wages

7. Procedure for fixing and revising
Minimum Wages [Section 5]
• AG Publish its proposals in the
official gazette asking comments
from the affected parties
• Constitute committees/sub
committees for the purpose.
• The committees/sub-committees
and advisory boards constituted by
the Government consist of equal
number of members of : Employers,
Employees, and Independent
persons

8. Advisory Board [Section 7]
• Appointed by Appropriate Govt.
• To coordinate the work of committees and sub
committees appointed (under sec 5)

9. Correction of Errors[Sec. 10]
• By appropriate Government at any time
• By notification in the Official Gazette
• Correct clerical or arithmetical mistakes or
errors arising from and accidental slip or
omission.
• Every such notification shall be placed before the
Advisory Board for information.

10. Mode of Payment of Wages
• Minimum wages shall be paid in cash
• Where it has been the custom to pay
wages in kind, the AG may authorise
such payment.
• If AG is of the opinion for supply of
essential commodities at concession
rates it may authorise supplies at
concessional rates.

11. Payment of Minimum rate of Wages
• Section 12 of this Act deals with Minimum
rate of wages to be paid
• The Minimum Wages has 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

12. Time for Payment of Wages
• In case of less than 1000 employees
- before expiry of the 7th day after last day of
wages period
• In case of other establishments
- before the expiry of the 10th day after the last
day of wage period
• Where employment has been terminated
- before the expiry of 2nd working day after the
day on which the employment is terminated.

13. Working Hour and Rest Day [Section
13]
For an Adult Worker working in Factories:
• Number of Working Hours should not exceed 48
Hours in a week with a weekly Holiday
• It may provide for a day rest in every period of 7
days.
• The Daily Hours should not exceed more than 9
Hours with 1 Hour Rest Interval
• Provision of Compensatory Holiday/ Overtime
Wages if working on holiday

14. Payment Of Overtime [section 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
• Payment for overtime under this
Act shall be applicable to the
workmen drawing minimum rate
of wages but not to those who are
getting better wages.

15. Wages for working less than
normal working hours [Section 15]
• Where minimum rate of wages has been
fixed by day works, an employee working for
less than the requisite hours, shall receive
full days wages
• Where failure of work is caused by
unwillingness to work, he shall not receive
full days wages.

16. Records to be maintained[section 18]
The Registers should contain the following
particulars-
• Particulars of employed persons
• The work performed by them
• The wages paid to them
• The receipts given by them

17. Inspector and their Powers
• To enter at all reasonable premises where
employees are employed or work is given out to
out workers for the purpose of examining any
register, record which are required to be kept.
• To examine any person whom he finds in such
premises and to whom he believes an employee
• To require any information with respect to
names and addresses of out workers
• To seize or take copies of register, records or
notices

18. Claims for minimum wages and
Compensation [section 20]
The following persons may apply to the
authority for direction for payment of minimum
rate of wages
• Employee
• Any legal practitioner authorised in writing
• Any official of registered trade union authorised
in writing
• Any inspector or any person acting with the
permission of the authority appointed

19. A single application may be
made on behalf of a number of
employees
Every application shall be
presented within six months
from the date on which the
minimum wages is due
Any such application may be
admitted after six months if
sufficient cause is given.

20. Offences and Penalties [section 22]
• Any employer who pays to any employee less
than the minimum rates of wages fixed for that
class of work or less than the amount due to him
under this Act shall be punishable with
imprisonment which may extend to six months
or with fine which may extend to Rs. 500 or
both.

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