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| Brief | FAQs |           THE MINIMUM WAGES ACT, 1948


 

The need for a country of having minimum wage-fixing machinery was stressed by the International Labour Organisation long back in 1928. Twenty years later our country passed the Minimum Wages Act, 1948. The reason given by the Government for passing the Act was that workers' organisations in the country were poorly developed and consequently their bargaining power also was very poor.

 

Like the Payment of Wages Act, 1936 this Act also is exhaustively amended by many  States to widen its scope and application. The Act is a boon to a large number of poorly paid persons in this country.

 

Object of the Act

 

To provide for fixing minimum rates of wages in certain employments

 

Fixation of Minimum Rates of Wages

  • The appropriate government to fix minimum rates of wages.  The employees employed in Para 1 or B of Schedule either at 2 or either part of notification u/s 27

  • To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates.

Government can also fix Minimum Wages for

(a) Time work (b) Piece work at piece rate (c) Piece work for the purpose of securing to such employees on a time work basis (d) Overtime work done by employees for piece work or time rate workers  {Section 3}

 

 

Minimum Rates of

Wages

Such as Basic rates of wages etc. Variable DA and Value of other concessions etc. Sec- 4

 

 

 

 

 

 

 

 

Fixing Hours for Normal Working

 

a. Shall constitute a normal working day inclusive of one or more specified intervals.

 

b. To provide for a day of rest in every period of seven days with remuneration.

 

c. To provide for payment for work on a day of rest at a rate not less than the overtime rate {Section 13}

 

Procedure for fixing and revising Minimum Rates of Wages

 

Appointing Committee issue of Notification etc. {Section 5}

 

Composition of Committee

 

Representation of employer and employee in schedule employer in equal number and independent persons not exceeding 1/3rd or its total number one such person to be appointed by the Chairman. {Section 9}

 

Payment of Minimum Rates of Wages

 

Employer to pay to every employee negated in schedule employment at a rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed. {Section 12}

 

 

 

 

 

Overtime

 

To be fixed by the hour, by the day or by such a longer wage-period works on any day in excess of the number of hours constituting normal working day.

 

Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (1 times or for agriculture labour) {Section 5}

 

 

 

 

 

 

 

 

 

Wages of workers who works for less than normal working days

 

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. {Section 15}

 

 

 

 

 

 

 

Wages for two class of work: Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, wages at not less than the minimum rate in respect of each such class. {Section 16}

 

 

 

 

 

 

 

 Maintenance of registers and records

  • Register of Fines - Form 1 Rule 21(4)

  • Annual Returns - Form III Rule 21(4-A)

  • Register for Overtime - Form IV Rule 25

  • Register of Wages - Form X, Wages Slip - Form XI, Muster Roll - Form V Rule 26

  • Representation of Register -  for three year Rule 26-A {Section 18}

 

Minimum time rate wages for piece work

 

Not less than minimum rates wages as fixed {Section 17}

 

 

 

 

 

 

 

Claims by employees

  • To be filled by before authority constituted under the Act within 6 months.

  • Compensation upto 10 times on under or non-payment of wages {Section 16}

 

 

 

 

 

 

 

 Penalties

Offences

Punishment

 As per Section 20

 

 For paying less than minimum rates of wages

Imprisonment upto 6 months or with fine upto Rs.500.00

 For contravention of any provisions pertaining to fixing hours for normal working day etc

 Imprisonment upto 6 months or with fine upto Rs.500.00

  


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