Minimum wages Act 1948

1. MINIMUM WAGE ACT
1948

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3. Introduction
▪ The principal objective of the minimum wages Act 1948
is to prevent exploitation of labour through the
payment of unduly low wages. The act provides for
fixing the minimum rates of wages for certain
employments also.
▪ It was recognized that wage determination cannot be
entirely left to market forces, that is, the supply of and
the demand for labour. The National Commission on
Labour stated 3

4. Introduction
▪ Under the Minimum Wages Act, minimum rates are not
fixed in respect of all employments. They are fixed only
in respect of certain employments specified in the
schedule to the Act. The Government may, however,
make additions | to the list of employments contained
in the schedule. The Minimum Wages Act does not
define minimum wage and does not contain any
guideline regarding what elements should be taken into
consideration in prescribing a minimum wage.
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5. Introduction
▪ As a result, different wage fixing authorities have
followed different sets of principles in fixing or revising
the minimum wages. There are wide disparities in the
rates of minimum wages fixed in respect of
employments within the state and in respect of the
same employments fixed by different states,
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6. 1. The Main provisions of the Act

7. Fixing of minimum wages
▪ The basic requirement for fixation of minimum wages for an
employment is that it should be included in the schedule to the Act.
▪ The appropriate government shall fix the minimum rates of wages
payable to employees employed in the industries specified in the
schedule.
▪ Revision can take place once in five years.
▪ The minimum wage may be fixed at a ‘time rate’ may consist of basic
wages and an allowance linked to the cost-of-living index, basic
wages and supply of essential commodities, or consolidated wages
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8. Minimum rale of wages
▪ The Government may fix –
a. a minimum rate;
b. a minimum piece rate;
c. a guaranteed time rate;
d. an overtime rate, appropriate to different occupations,
localities, or classes of work and for adults,
adolescents, children, and apprentices.
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9. Procedure for fixing and revising minimum wages
▪ The Act prescribes for the fixing and revision of
minimum government in fixing and | revising the
minimum rates of wages and to appoint an advisory
board for the purpose of coordinating the work of
committees and sub-committees and also for advising
the appropriate government generally in the matter of
fixing and revising minimum rates of wages.
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10. Procedure for fixing and revising minimum wages
▪ The Act prescribes for the fixing and revision of
minimum government in fixing and | revising the
minimum rates of wages and to appoint an advisory
board for the purpose of coordinating the work of
committees and sub-committees and also for advising
the appropriate government generally in the matter of
fixing and revising minimum rates of wages.
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11. Working hours
▪ The Government may also fix the number of hours of
work , provide for a weekly day of rest, payment of
remuneration in respect of such days of rest, and
payment for work on a day of rest at a rate not less than
the overtime rate.
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12. Overtime
▪ Where an employee works .on any day in excess of the
number of hours constituting a normal working day, the
employer shall pay him at the overtime rate fixed under
this Act or under any law of the appropriate
government, whichever is higher.
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13. Employers’ Obligation
▪ Once the minimum rate of wages are fixed or revised
according to the procedure prescribed under the Act, it
becomes the legal obligation of the employers to pay
the rates.
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14. Exemptions
▪ The appropriate government may direct that the
provisions of this Act shall not apply in relation to the
wages payable to disabled employees. The government
may, for special reasons, direct that the provisions of
this Act or any of them shall not apply to all or any class
of employees or to any locality where employment is
carried on.
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15. Content of minimum wages
▪ The Fair Wages Committee viewed that the minimum
wages must provide not merely for the bare
subsistence of life but also for the preservation of the
worker's efficiency by providing for some measure of
education, medial aid, and amenities
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16. Different Categories
▪ The Act permits fixation of different minimum rates of
wages for different classes of work in the same
scheduled employment.
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