Overview of Minimum Wages Act 1948 for Unorganized Workers

 
MINIMUM WAGES ACT
1948
 
 
 
INTRODUCTION
 
 
The minimum wages Act 1948, was to secure the welfare of unorganised workers in certain industries by fixing the
minimum rates of wages. The Act contemplates that minimum wages rates must ensure for him not only his
subsistence and that of his family but also preserve his
efficiency as a workman.The Act empowers the appropriate Government for fixation of minimum wages in
employments enumerated in the schedule to the Act. The fixation of minimum wages
 
relates to the industries where
sweated labour is most prevalent or where there is inevitable chance of exploitation. In prescribing the minimum
wages rates, the capacity of the employers need to be considered as the State assumes that every employer
must pay the minimum wages if he employs labour.
 
SECTION 3
FIXING OF MINIMUM RATE OF WAGES
 
The minimum wages Act 1948, was to secure the welfare of unorganised workers in certain
industries by fixing the minimum rates of wages. The Act contemplates that minimum wages
rates must ensure for him not only his subsistence and that of his family but also preserve his
efficiency as a workman.
The Act empowers the appropriate Government for fixation of minimum wages in
employments enumerated in the schedule to the Act. The fixation of minimum wages relates
to the industries where sweated labour is most prevalent or where there is inevitable chance
of exploitation.
In prescribing the minimum wages rates, the capacity of the employers need to be considered
as the State assumes that every employer must pay the minimum wages if he employs labour.
 
SECTION 4
MINIMUM 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 + Cost of living
Allowance + Cash value of concessional supply of materials
.
 
SECTION 5
PROCEDURE FOR FIXATION AND REVISION OF
 
MINIMUM RATES OF WAGES
 
 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
 
FIXATION OF MINIMUM WAGES
 
Recommendation of Advisory Board for different class [unskilled, skilled, Clerk, Supervisor]
 
Publish recommendations in National Publications [for public comments/representations from
Trade Unions etc.]
 
Hearing of the Representatives
 
Notification of Minimum wages
 
SECTION 7
ADVISORY BOARD
 
Appointed by appropriate government.
To co-ordinate the work of committees and sub committees appointed under Section 5.
Advisory Board. For the purpose of co-ordinating the work of
 19
 [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.
 
SECTION 8
CENTRAL ADVISORY BOARD
 
 To advise the Central and State Governments in fixation and revision of minimum rates
of wages.
To co-ordinate the work of the Advisory Boards.
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
co-ordinating the work of the Advisory Board, the Central Government shall appoint a
Central Advisory Board.
 
SECTION 9
COMPOSITION OF COMMITTEES
 
Each of the committee, sub-committee and the Advisory Board shall consist of:.
1.
 persons to be nominated by the appropriate Government.
2.
representing the employers and employees in the scheduled employments who shall be
equal in number and
3.
independent persons not exceeding one-third of its total number of members: one of
such independent persons shall be appointed the Chairman by the appropriate
Government.
 
SECTION 10
CORRECTION
 
OF ERRORS
 
The appropriate Government may, at any time, by notification in the Official Gazette,
correct clerical or arithmetical mistakes in any order fixing or revising minimum rates of
wages under this Act, or errors arising therein from any accidental slip or omission.
Every such notification shall, as soon as may be after it is issued, be placed before the
Advisory Board for information.
 
SECTION 11
WAGES IN KIND
 
Minimum wages shall be paid in cash.
The appropriate govt. may authorize, where there has been a
custom of payment in this manner, payment of minimum wages
either wholly or partly in kind.
 The appropriate govt. may authorize supply of essential
commodities at concessional
 
rates.
 
SECTION 12
PAYMENT OF MINIMUM RATE OF WAGES
 
 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.
Where in respect of any scheduled employment a notification under section  is in force,
the employer shall pay to every employee engaged in a scheduled employment under him
wages at a rate not less than the minimum rate of wages fixed by such notification for that
class of employees in that employment without any deductions except as may be
authorised within such time and subject to such conditions as may be prescribed.
 
SECTION 13
FIXING HOURS OF WORK
 
For an Adult Worker 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 holiday.
 
SECTION 14
OVERTIME
 
WAGES
 
 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
Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by
the day or by such a longer wage-period as may be prescribed, works on any day in excess
of the number of hours constituting a normal working day, the employer shall pay him for
every hour or for part of an hour so worked in excess at the overtime rate fixed under this
Act or under any law of the appropriate Government for the time being in force,
whichever is higher.
 
SECTION 15
WAGES OF WORKER WHO WORKS FOR LESS THAN NORMAL WORKING DAY.
 
Wages of worker who works for less than normal working day. If an employee whose
minimum rate of wages has been fixed under this Act by the day works on any day on which
he was employed for a period of less than the requisite number of hours constituting a normal
working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in
respect of work done by him on that day as if he had worked for a full normal working day:
Provided, however, that he shall not be entitled to receive wages for a full normal working day
(i)
 in any case where his failure to work is caused by his unwillingness to work and not by the
omission of the employer to provide him with work, and
(ii)
 in such other cases and circumstances as may be prescribed.
 
SECTION 16
 
WAGES FOR TWO OR MORE CLASSES OF WORK
 
Wages for two or more classes of work. Where an employee does two or more classes of
work to each of which a different minimum rate of wages is applicable, the employer shall
pay to such employee in respect of the time respectively occupied in each such class of
work, wages at not less than the minimum rate in force in respect of each such class. State
Amendment Madhya Pradesh. In section 16, for the words "in respect of the time
respectively occupied in each such class of work, wages at not less than the minimum rate
in force in respect of each such class", substitute the words wages at the highest of the
rates prescribed for such class
.
 
SECTION 17
MINIMUM TIME RATE WAGES FOR PIECE 
WORK
 
Minimum time rate wages for piece work. —Where an employee is employed on piece work
for which minimum time rate and not a minimum piece rate has been fixed under this Act,
the employer shall pay to such employee wages at not less than the minimum time rate.
 
SECTION 19
INSPECTORS
 
 The appropriate Government may, by notification in the Official Gazette, appoint such
persons as it thinks fit to be Inspectors for the purposes of this Act and define the local
limits within which they shall exercise their functions.
Subject to any rules made in this behalf, an Inspector may, within the local limits for
which he is appointed
 
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
The appropriate Government may, by notification in the Official Gazette, appoint
 
[any
Commissioner for Workmen's Compensation or any officer of the Central Government
exercising functions as a Labour Commissioner for any region, or any officer of the State
Government not below the rank of Labour Commissioner or any] other officer with experience
as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide
for any specified area all claims arising out of payment of less than the minimum rates of
wages
 
SECTION 21
SINGLE APPLICATION IN RESPECT OF A NUMBER OF EMPLOYEES.
 
Subject to such rules as may be prescribed, a single application
 
may be presented under section
20 on behalf or in respect of any number of employees employed in SCHEDULEd
employment in respect of which minimum rates of wages have been fixed and in such cases
the maximum compensation which may be awarded under sub-section (3) of section 20 shall
not exceed ten times the aggregate amount of such excess
 35
 [or ten rupees per head, as the case
may be].
 The Authority may deal with any number of separate pending applications presented under
section 20 in respect of employees in SCHEDULEd employments in respect of which
minimum rates of wages have been fixed, as a single application presented under sub-section
(1) of this section and the provisions of that sub-section shall apply accordingly. State
Amendments Section 21A
 
SECTION 22
PENALTIES
 
Payment of less than Minimum Wages to employee
 
Imprisonment which may extend up
to 6 Months or Fine which may extend up to Rs 500/- or Both
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The Minimum Wages Act 1948 aims to protect the welfare of unorganized workers by setting minimum wage rates that ensure their subsistence and efficiency. The Act empowers the government to fix minimum wages in industries prone to exploitation. It includes provisions for fixing rates, procedure for revision, and recommendations for different worker classes. Committees are formed to gather input before finalizing wage rates.


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  1. MINIMUM WAGES ACT 1948

  2. INTRODUCTION The minimum wages Act 1948, was to secure the welfare of unorganised workers in certain industries by fixing the minimum rates of wages. The Act contemplates that minimum wages rates must ensure for him not only his subsistence and that of his family but also preserve his efficiency as a workman.The Act empowers the appropriate Government for fixation of minimum wages in employments enumerated in the schedule to the Act. The fixation of minimum wages relates to the industries where sweated labour is most prevalent or where there is inevitable chance of exploitation. In prescribing the minimum wages rates, the capacity of the employers need to be considered as the State assumes that every employer must pay the minimum wages if he employs labour.

  3. SECTION 3 FIXING OF MINIMUM RATE OF WAGES The minimum wages Act 1948, was to secure the welfare of unorganised workers in certain industries by fixing the minimum rates of wages. The Act contemplates that minimum wages rates must ensure for him not only his subsistence and that of his family but also preserve his efficiency as a workman. The Act empowers the appropriate Government for fixation of minimum wages in employments enumerated in the schedule to the Act. The fixation of minimum wages relates to the industries where sweated labour is most prevalent or where there is inevitable chance of exploitation. In prescribing the minimum wages rates, the capacity of the employers need to be considered as the State assumes that every employer must pay the minimum wages if he employs labour.

  4. SECTION 4 MINIMUM 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 + Cost of living Allowance + Cash value of concessional supply of materials.

  5. SECTION 5 PROCEDURE FOR FIXATION AND REVISION OF MINIMUM RATES OF WAGES 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

  6. FIXATION OF MINIMUM WAGES Recommendation of Advisory Board for different class [unskilled, skilled, Clerk, Supervisor] Publish recommendations in National Publications [for public comments/representations from Trade Unions etc.] Hearing of the Representatives Notification of Minimum wages

  7. SECTION 7 ADVISORY BOARD Appointed by appropriate government. To co-ordinate the work of committees and sub committees appointed under Section 5. Advisory Board. For the purpose of co-ordinating the work of19[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.

  8. SECTION 8 CENTRAL ADVISORY BOARD To advise the Central and State Governments in fixation and revision of minimum rates of wages. To co-ordinate the work of the Advisory Boards. 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 co-ordinating the work of the Advisory Board, the Central Government shall appoint a Central Advisory Board.

  9. SECTION 9 COMPOSITION OF COMMITTEES Each of the committee, sub-committee and the Advisory Board shall consist of:. 1. persons to be nominated by the appropriate Government. 2. representing the employers and employees in the scheduled employments who shall be equal in number and 3. independent persons not exceeding one-third of its total number of members: one of such independent persons shall be appointed the Chairman by the appropriate Government.

  10. SECTION 10 CORRECTION OF ERRORS The appropriate Government may, at any time, by notification in the Official Gazette, correct clerical or arithmetical mistakes in any order fixing or revising minimum rates of wages under this Act, or errors arising therein from any accidental slip or omission. Every such notification shall, as soon as may be after it is issued, be placed before the Advisory Board for information.

  11. SECTION 11 WAGES IN KIND Minimum wages shall be paid in cash. The appropriate govt. may authorize, where there has been a custom of payment in this manner, payment of minimum wages either wholly or partly in kind. The appropriate govt. may authorize supply of essential commodities at concessional rates.

  12. SECTION 12 PAYMENT OF MINIMUM RATE OF WAGES 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. Where in respect of any scheduled employment a notification under section is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorised within such time and subject to such conditions as may be prescribed.

  13. SECTION 13 FIXING HOURS OF WORK For an Adult Worker 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 holiday.

  14. SECTION 14 OVERTIMEWAGES 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 Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate Government for the time being in force, whichever is higher.

  15. SECTION 15 WAGES OF WORKER WHO WORKS FOR LESS THAN NORMAL WORKING DAY. Wages of worker who works for less than normal working day. If an employee whose minimum rate of wages has been fixed under this Act by the day works on any day on which he was employed for a period of less than the requisite number of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day: Provided, however, that he shall not be entitled to receive wages for a full normal working day (i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work, and (ii) in such other cases and circumstances as may be prescribed.

  16. SECTION 16 WAGES FOR TWO OR MORE CLASSES OF WORK Wages for two or more classes of work. Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class. State Amendment Madhya Pradesh. In section 16, for the words "in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class", substitute the words wages at the highest of the rates prescribed for such class.

  17. SECTION 17 MINIMUM TIME RATE WAGES FOR PIECE WORK Minimum time rate wages for piece work. for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate. Where an employee is employed on piece work

  18. SECTION 19 INSPECTORS The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act and define the local limits within which they shall exercise their functions. Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed

  19. 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 The appropriate Government may, by notification in the Official Gazette, appoint[any Commissioner for Workmen's Compensation or any officer of the Central Government exercising functions as a Labour Commissioner for any region, or any officer of the State Government not below the rank of Labour Commissioner or any] other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of payment of less than the minimum rates of wages

  20. SECTION 21 SINGLE APPLICATION IN RESPECT OF A NUMBER OF EMPLOYEES. Subject to such rules as may be prescribed, a single application may be presented under section 20 on behalf or in respect of any number of employees employed in SCHEDULEd employment in respect of which minimum rates of wages have been fixed and in such cases the maximum compensation which may be awarded under sub-section (3) of section 20 shall not exceed ten times the aggregate amount of such excess35[or ten rupees per head, as the case may be]. The Authority may deal with any number of separate pending applications presented under section 20 in respect of employees in SCHEDULEd employments in respect of which minimum rates of wages have been fixed, as a single application presented under sub-section (1) of this section and the provisions of that sub-section shall apply accordingly. State Amendments Section 21A

  21. SECTION 22 PENALTIES Payment of less than Minimum Wages to employee Imprisonment which may extend up to 6 Months or Fine which may extend up to Rs 500/- or Both

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