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1. Topic: Minimum wages act 1947
Submitted to
Dr Rachana Jaiswal
Dept. of Business management
Submitted by
Vishnu p
MBA 3rd semester

2. What is minimum wages act 1947 ?
• The Minimum Wages Act of 1947 is a significant piece of legislation in
India that aims to safeguard the interests of workers by ensuring they
receive a minimum wage. It was enacted to prevent the exploitation of
labor and to fix minimum rates of wages in certain employments.

3. History of minimum wages act
Pre-Independence Era:
• Before independence, labor conditions in India were often exploitative,
with long working hours, low wages, and poor working conditions
prevailing across various industries.
• Movements led by trade unions and social reformers highlighted the need
for legislation to protect the interests of workers.

4. Post-Independence and the Minimum Wages Act:
• After India gained independence in 1947, there was a push towards social
and economic reforms to uplift the marginalized sections of society,
including the labor force.
• In this context, the Minimum Wages Act of 1947 was enacted to establish a
legal framework for fixing minimum wages in scheduled employments.
• The Act aimed to ensure a minimum standard of living for workers and
protect them from exploitation by setting a floor wage that employers must
adhere to.

5. Key features of the Minimum Wages Act 1947 include:
• Fixation of Minimum Wages: The Act provides for the fixation and
periodic revision of minimum wages for various scheduled employments.
These minimum wages are determined based on factors like the type of
work, skill required, geographical area, cost of living, and more.
• Applicability: The Act applies to all employees engaged in scheduled
employments, whether employed by the government, local authority, or any
other employer.
• Revision and Advisory Boards: The Act provides for the constitution of
Advisory Boards at both the central and state levels to advise the
appropriate government on matters related to the fixation and revision of
minimum wages.

6. • Responsibilities of Employers: Employers are mandated to pay wages to
their employees not less than the minimum rates fixed by the government.
They are also required to maintain various records related to wages, hours
of work, and other conditions.
• Working Hours and Overtime: The Act specifies the maximum number
of working hours per day and prescribes overtime rates for work done
beyond the standard hours.
• Inspectorate System: It establishes a system of inspectors who are tasked
with ensuring compliance with the provisions of the Act. Inspectors have
the authority to inspect workplaces, examine records, and take necessary
actions against non-compliant employers.

7. • Penalties and Legal Actions: Employers failing to comply with the
provisions of the Act, including non-payment of minimum wages or other
violations, can face penalties and legal consequences.
• Prohibition of Discrimination: The Act prohibits discrimination in
payment of wages based on gender, making it mandatory to provide equal
wages for the same work or work of similar nature, irrespective of gender.

8. Importance of minimum wages act 1947
• Ensuring Decent Standard of Living: The Act ensures that workers
receive a minimum wage that allows for a decent standard of living. It
prevents exploitative practices and provides a financial base for workers to
support themselves and their families.
• Protection Against Exploitation: By setting a floor wage, the Act protects
workers from being underpaid or exploited by employers seeking to pay
inadequate wages for labor.
• Promoting Social Justice: It contributes to social justice by reducing
income inequality and ensuring that all workers, irrespective of the nature
of their employment, receive fair compensation for their work.

9. • Economic Stability: Ensuring minimum wages helps stabilize the
economy by providing purchasing power to workers, which in turn
stimulates consumer spending and economic growth.
• Improving Productivity: Fair wages motivate workers and can lead to
increased productivity and efficiency in the workplace, benefiting both
employees and employers.
• Reducing Poverty: By providing a baseline income, the Act plays a role in
poverty reduction, lifting workers and their families out of extreme poverty.

10. THANK YOU