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THE MINIMUM WAGES ACT 948

Presentat ion on THE

MINIMUM WAGES ACT 1948

Presented by : Uzma Rukhsar.


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History of minimum wages. The initiative by Shri K.G.R.Choudhary in

1920set up boards for determination of

wages.

The International Labour Conference

adopted convention no.26and 30in 1928

relating to wage fixing machineryin trades

or parts of trades.

A Minimum Wages Bill was introduced in

the Central Legislative Assembly on

11.04.1946and came into force with effect

from 15.03.1948.


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The Minimum wages .The minim um wages Act 1948, was to secu re the welfare of

uno rganised workers in certain industr ies by f ix ing them inimum rates o f wages. The Ac t contemplates that

min imum wages rates must ensure for him not on ly his

subsistence and that of h is fam i ly but also preserve his

eff ic iency as a workman.The Ac t empowers the appropr iate

Government for f ixat ion of min imum wages in

employm ents enumerated in the schedule to the Act. The

f ixat ion o f m inimum wages relates to the indus tr ies where

sweated labour is mos t prevalent or where there is

inevi table chance of exp loi tat ion. In prescr ibing the

m inimum wages rates, the capaci ty of th e employers need

to be cons idered as the State assumes that every emp loyer

must pay the m inimum wages i f he employ s labour.


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Short title and extentsec. 1)This Act , the Minimum Wages Ac t,

1948 extends to the who le o f Ind ia.

This Ac t may be called the MinimumWages Act, 1948.


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Interpretation/Definitionsec.2) (a) Adult', Adolescent and Child

Adult- is who has completed his eighteen years of age.

Adolescent completed his fifteen years but not

eighteen years of age.

Child

who has not completed his fifteen years of age

(b) Appropr iate government India has federal form

of Government at the centre and state level . Theminimum wages act provide separate areas of

jurisdiction for both centre and state government.


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(e) Employer means any person who

employs one or more employees in any

schedule of employment.

(h) Wagesmeans all remuneration

capable of being expressed in terms ofmoney.

(i) Employeemeans any person

employed for hire or reward andincludes an outworker.


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Minimum rates of wagessec.4)

1. Basic + Special Allowance (Which varies

with the cost of living index).

2. Basic + Cash value of concessional supply ofmaterials like food, clothes, etc.

3. Anall inclusive rate which includes Basic +

Cost of living Allowance + Cash value of

concessional supply of materials.


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Procedure for fixation and revision of minimumrates of wages sec.5)Pub l ishits proposals in the o ff ic ial gazetteasking

comments from the affected parties.

Constitute comm it tees/sub comm it tees 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


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Fixation of minimum wagesRecommendation 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


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Each of the committee, sub-committee and theAdvisory Board shall consist of:

a. persons to be nominated by the appropriate

Government.b. representing the employers and employees in the

scheduled employments who shall be equal in

number and

c. independent persons not exceeding one-third of itstotal number of members: one of such independent

persons shall be appointed the Chairman by the

appropriate Government.

Composi t ion of Comm it tees, etc.

(Sec . 9)


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Wages in kind sec. 11) Minimum wages shall be paid in cash. The appropriate govt. may authorize, where

there has been a customof payment in thismanner, payment of minimum wages either

wholly or partlyin kind. The appropriate govt. may authorize supply

of essential commoditiesat concessionalrates.

PAYMENT OF MINIMUM WAGES


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Payment of minimum rate of wagessec. 12) The Minimum Wages has to be paid withoutany deductions other than Statutory

Deductions.

Payment of wages less than minimumwages on the ground of less performance oroutput isillegal.


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Fixing hours of worksec. 13)For an Adult Worker working in Factories:

Number of Working Hours should not exceed 48Hours in a week with a weekly Holiday.

The Daily Hours should not exceed more than 9Hourswith 1 Hour Rest Interval.Provision of Compensatory Holiday/Overtime Wages

if working on holiday.


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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 .

Overtime wagessec. 14)


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Wages for a person who has worked less than normalworking hours sec. 15)

Employer could not provide the activities of

the job then, the employee is entitled to

receive full salary.

Employee has not worked due to his

unwillingness then, the employee is notentitled to receive full salary.


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Records to be maintainedsec. 18)

The Registers should contain the following

particulars-(i) particulars of employed persons

(ii) the work performed by them

(iii) the wages paid to them

(iv) the receipts given by them


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A Labour Commissioner or any otherappointed authority is authorized to hear

claims regarding non-payment of minimumwagesAny aggrieved person may applyto the

authority for settling his claims within 6months

Claimssec. 20)


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Offence PunishmentPayment 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

Penalties

(sec. 22)


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Power of State Government to add

schedule (sec.27)

The State Government has to notify in the OfficialGazette not less than three months of its intention to doso.

The Central Government may give directions to a StateGovernment as to the carrying into execution of this Act in

the State.

Power of Central Government to givedirections (sec.28)


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TH NK YOU

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