MINIMUM WAGE ACT AND PROVIDENT FUND ACT

MINIMUM WAGE ACTANDPROVIDENT FUND ACTMade by:-Onkar Kapoor (B-52)The MINIMUM WAGES ACT1948BRIEF HISTORY:-The initiative was taken by Shri K.G.R. Choudhary in 1920, who set up boards for determination of wages.A Minimum Wages Bill was introduced in the Central Legislative Assembly on 11th April 1946 and came into force with effect from 15th March 1948.The Committee on Fair Wage was set up in 1948 to provide guidelines for wage structure.The MINIMUM WAGES ACT1948DEFINITION:-

The Act was designed 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 MINIMUM WAGES ACT1948OBJECTIVES:-

To provide minimum wages to the workers working in organized sector.To stop exploitation of the workers.To empower the government to take steps for fixing minimum wages and to revising it in a timely manner.To apply this law on most of the sections in organized sector.The MINIMUM WAGES ACT1948FIXATION AND REVSION OF MINIMUM WAGES:-

The minimum rates of wages will be reviewed/ revised, for every five years, by the appropriate govt.Appropriate govt. can add any employment, to the schedule, wherein one thousand or more employees are found working.Different minimum rates of wages may be fixed for different scheduled employments/ different classes of work /different localities.The MINIMUM WAGES ACT1948WHAT IS THE APPROPRIATE GOVENMENT?:-

In relation to scheduled employment carried on by Central Government or railways or est. under Central Act, the Central Government.In all other cases its the State Government.

The MINIMUM WAGES ACT1948EXAMPLE OF WAGE RATE IN DELHI:-

EXAMPLE OF WAGE RATE IN DELHI FOR DIFFERENT SCHEDULES:-

EMPLOYEE PROVIDENT FUND ACT 1952EMPLOYEE PROVIDENT FUND DEFINITION:-

It is a mandatory, tax-qualified, defined, contribution retrial benefit plan wherein equal contribution at the specified rate is made by the employer and the employee and the same is payable in lump sum on retirement.It is one of the main platforms of savings in India for nearly all people working in Government, Public or Private sector Organizations. It is implemented by the Employees Provident Fund Organization(EPFO) of India.

EMPLOYEE PROVIDENT FUND ACT 1952PURPOSE AND OBJECTIVE:-

The act has been enacted with the main objective of protecting the interest of the employees after their retirement and their dependents after death of the employee. The Act provides insurance to workers and their dependents against risks of old age, retirement, discharge, retrenchment or death.EMPLOYEE PROVIDENT FUND ACT 1952E.P.F APPLICABILITY:-

The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 extends to whole of India except the state of Jammu & Kashmir.It applies on every establishment employing 20 or more persons & engaged in industry specified in Schedule I of the Act or any other activity notified by the Central Government.It applies to all departments / branches of an establishment wherever situated.Any establishment employing even less than 20 persons can be covered voluntarily under section 1(4) of the Act.EMPLOYEE PROVIDENT FUND ACT 1952E.P.F ELIGIBILITY:-

Employees drawing salary / wages at the time of joining upto Rs.6,500/- per month are governed by the provisions of the Act;Employees drawing salary / wages more than Rs.6,500/- per month may also be brought under the purview of the Act at the discretion of the management and by furnishing a joint undertaking to the Provident Fund Commissioner;Employees engaged through the Contractor in or in connection with the work of an establishment are also covered under the purview of the Act.EXAMPLE:-

EXAMPLE:-Current EPF interest rate for 2014-2015 is 8.75%

REFERENCEShttp://delhi.gov.in/http://business.gov.in/http://www.thehindubusinessline.com/http://profit.ndtv.com/http://www.thehindu.com/THANKYOU