MINIMUM WAGES ACT-1948

The conception of minimum wages is based on the

principles of equity and social justice. Its underlying idea
is that “ he who works is entitled to a fair remuneration,
which may enable him to live a life consistent with
human dignity”.

The object of the Act is to promote the welfare of workers

by fixing minimum rates of wages in certain industries
where labour is not organized and sweated labour is
most prevalent.

The act seeks to prevent exploitation of workers by

ensuring that they are paid the minimum wages, which
would provide for their subsistence and preserve their
efficiency.
 Scope and coverage of the act

The act applies to the whole of India.

Initially it applied to agricultural employment and
12 other employments as mentioned in the
Schedule to the Act.
The appropriate Governments is empowered to
extend this Act to any other employment in
respect of which it is of the opinion that minimum
rates of wages should be fixed under the Act, the
result that now the act covers more than three
hundred employments
Scheduled employments (sec 2(g) and Sec 27) -PART I
• Employment in any woolen carpet making or shawl weaving
establishment
•Employment in any rice mill, flour mill or dal mill.
•Employment in any tobacco manufacture
•Employment in any plantation
•Employment in the construction or maintenance of roads or
in building operations
•Employment in any tannery or any other leather manufacture
•Employment in any oil mill
•Employment in any local authority
•Employment in any stone breaking or stone crushing
establishment
•Employment in any mica works
•Employment in lace manufactory
•Employment in any public motor trasport establishment.
 PART II

Employment in agriculture, that is to say, in any

form of farming, including the cultivation and
tillage of the sol, dairy farming, the production,
cultivation, growing and harvesting of any
agricultural or horticultural commodity, raising of
livestock, bees and poultry and any practice
performed by farmer or on a farm as incidental to
or in conjunction with farm operation.
Employment in cleaning and sorting of onions and
other incidental work.
 Wages :
Wages means all remuneration, capable of being
expressed in terms of money which would, if terms or
contract of employment, expressed or implied were
fulfilled be payable to a person employed, in respect of
his employment or of work done n such employment.
It includes house rent allowance, but does not include the
value of
a) any house accommodation, supply of light, water
medical attendance (or)
b) any other amenity or any service excluded by general
or special order of the appropriate government.
Wages do not include any contribution paid by employer
to any pension fund or provident fund under any
scheme of social insurance.
 Fixation and Revision of Minimum Wages
The appropriate government may fix the minimum rates
of wages payable to the employees of the scheduled
employment, either for the whole State or a part of the
State or for any specified class or classes of such
employment.
Minimum rates of wages may be fixed, both for time-
rated and piece rated workers ; and also for over-time
work.
The minimum wages so fixed may be reviewed at such
intervals as the Government may think fit; such intervals
not exceeding five years.
In fixing or revising minimum rates of wages, different
rates may be fixed for – different scheduled
employments, different classes of work in the same
scheduled employment, adults,adolescents, children,
apprentices and different localities.
The appropriate government may refrain from
fixing minimum rates of wages in respect of any
scheduled employment, in which there are in the
whole state, less than one thousand employees in
such employment. But if, at any time, the
appropriate government comes to find after an
enquiry that the number of employees in any
individual employment has risen to one thousand
or more, it shall fix minimum rates of wages
payable to employees in such employment as
soon as after such finding.
 Minimum rates of wages
Minimum rates of wages fixed and revised under this Act may
consist of :
• A basic rate of wages and a special allowance as a rate to
be adjusted to variation in the cost of living index applicable
to such workers at such intervals and in such manner as
the Government may direct,
• A basic rate of wages with or without the cost of living
allowance, and the cash value of the concession, in respect
of supplies of essential commodities at concession rates
where so authorised or
• An all-inclusive rate, allowing for the basic rate, the cost of
living allowance, the cash value of the concession if any,
the cost of living allowance and cash value of the concession
shall be computed by a competent authority at such
intervals and according to such direction as may be given
by the appropriate government.
 Procedure for fixing and Revising Minimum
Wages
Minimum rates of wages, in respect of any scheduled employment,
can be fixed or revised by the appropriate Government in either of
two methods ,
a) it shall appoint as many committees and sub-committees as it
considers necessary to hold enquiries and advise it in respect of
such fixation or revision, as the case may be. Or it shall , by
notification in the Official Gazette, publish its proposal for the
information of the persons likely to be affected thereby, and specify
a date, not less than two months from the date of notification, on
which the proposal will be taken into consideration.
After considering the advice of the committee or committees or all
representations received by it before the date specified in the
notification, the appropriate Government, by notification in the
official Gazette, shall fix or revise the minimum rates of wages in
respect of each scheduled employment. The fixation or revision
shall come into force on the expiry of three months from the date of
issue of notification, unless otherwise directed.
•Where the appropriate government proposes to revise
the minimum rates of wages by notification, it shall also
consult the Advisory Board appointed under sec.7 of the
Act. Before the Government fixes the revised minimum
rates of wages, it shall take into consideration
representation received by it. Time must be specified for
making representation.

• consultation with the Advisory Board is obligatory for

revision of minimum wages and not initial fixation.

•If no advice is given by the committee, or if inadequate

advice is given, sec.5 does not deprive the appropriate
Government of its power and duty to fix or revise the
minimum rate of wages.
 ADVISORY BOARD

For the purpose of coordinating the work of committees and sub-

committees appointed under sec.5 of the Act, 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 to function.
Composition of committees and Advisory Board :
Each of the committee, sub-committee, and the Advisory Board shall
consist of persons to be nominated by the appropriate
Government, representing employers and employees in the
scheduled employments, who shall be equal in number, and
independent persons not exceeding one-third of its total number
of members.
One of the independent person shall be appointed as the chairman
by the appropriate government.
 Central Advisory Board (Sec.8)

The Central Government shall appoint a Central Advisory Board

a. For the purpose of advising the Central and State Governments
in the matter of fixing and revising minimum rates of wages and
the matters under the Act,
b. For coordinating the work of the Advisory Boards
it shall consist of persons nominated by the Central Government
representing employers and employees in the scheduled
employments, who shall be in equal in number, and independent
persons, not exceeding one-third of its total number of
members. One of the independent persons shall be appointed as
the Chairman of the Board by the Central Government.
 Payment of Minimum Rates of
Wages

• Where in respect of any scheduled employment,

minimum wages have been fixed; the employer shall
pay to every employee, wages at a rate not less than
the minimum rate of wages fixed for that class of
employees in the employment.

• Such wages shall be paid without any deduction,

except as may be authorized.
 Fixing of Hours for a Normal
working Day
Where minimum rates of wages have been fixed
in regard to any scheduled employment, the
appropriate government may ;
i. Fix the number of hours of work, which
constitute a normal working day, inclusive of
one or more specified intervals
ii. Provide for a day of rest in every period of
seven days and for payment of remuneration in
respect of such days of rest.
iii.Provide for payment for work on a day of rest at
a rate not less than overtime rate.
In relation to the following class of employees, the above
provisions shall apply to such extent and subject to such
conditions as may be prescribed :
i. Employees engaged in urgent work or in any emergency, which
could not have been foreseen and prevented
ii. Employees engaged in the nature of preparatory or
complementary work, which must necessarily be carried on
outside the limits laid down for the general working in the
employment concerned.
iii. Employees whose employment is essentially intermittent
iv. Employees engaged in any work, which for technical reasons,
has to be completed before the duty is over
v. Employees engaged in any work, which could not be carried on,
except at times, dependent on the irregular action of natural
forces.
 Rates of Overtime
Where an employee, whose minimum rate of wages has
been fixed, 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.
Where a worker works in an employment for more than
nine hours on any day or for more than 48 hours in any
week, he shall, in respect of such overtime work, be
entitled to wages at double the ordinary rate of wages.
• Wages of workers who work for less than normal working
days where an employee whose minimum rates of wages
has been fixed under this Act by the day works on any day
on which he was employed for a period less than the
requisite number of hours constituting a normal working
day, he shall 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.
• However he is not entitled for a full normal working day in
the following cases :
1.in any case, where his failure to work was caused by his
unwillingness and not by the omission of the employer to
provide him with work.
2.in other such cases and circumstances ass may be
prescribed.
 Minimum Time rate Wages for Piece Work
Where an employee is employed on piece work for which minimum time
rate and not minimum piece rate has been fixed under the Act, the
employer shall pay to such an employee, wages at not less than the
minimum time rate.
REGISTERS AND RECORDS :
a. every employer shall maintain such registers and records giving such
particulars of employees employed b him, the work performed by them,
the wages paid to them, the receipt given by them and such other
particulars and in such forms as may be prescribed.
b. Every employer shall keep the notices exhibited in such factory,
workshop or place as may be used for giving out work to them,
c. The appropriate government may, by rules made under the Act,
provide for the issue of wage books or wage slips to employees
employed in any scheduled employment in respect of which minimum
rates of wages have been fixed.
 Enforcement of the Act
Inspectors :
By notification in the Official Gazette, the appropriate government may appoint
inspectors, and define the local limits within which they shall exercise their functions.
The inspectors have to see that the provisions of the Act are complied with, for this,
inspectors are empowered to :
1. enter all reasonable hours, with such assistance they may think fit, any premises
or place where employees are employed, in respect of which minimum rates of
wages have been fixed, for the purpose of examining any register, record of wages,
or notice required to be kept or exhibited by or under this act, or rules made
thereunder, and require the production thereof for inspection.
2.examine any person whom he finds in any such premises or place and who, he has
reasonable cause to believe, is an employee.
3.require any person given out work or any worker to give any information, which is
in his power to give, with respect to other persons and for whom the work is given or
received , and with respect to the payment to be made for work;
4.seize or take copies of such register, record of wages or notices as he may
consider relevant, in respect of any offence under this Act, which he has reason to
believe has been committed by an employer.
5.exercise such other powers as may be prescribed
 Claims
The appropriate government, may by notification in Official Gazette,
appoint an authority to hear and decide for any specified area all claims:
a. arising out of payment of less than the minimum rates of wages, or
b. For work done on days or rest, or
c. In respect of wages at the overtime rate to employees employed or
paid in that area.
Authority for hearing and deciding claims :
i. any commissioner for workmen's compensation
ii. any officer of the Central Government exercising functions as Labour
Commissioner for any region
iii. any officer of the State Government not below the rank of Labour
Commissioner
Iv. an other officer with an experience as a judge of a Civil Court or as a
stipendiary magistrate
 Who may apply ?
Where an employee has any claim, any of the following may
apply to the authority for hearing and deciding the case
a. the employee himself or
b. any legal practitioner
c. any official of a registered trade union, authorized in writing
to an act on his behalf
d. any inspector or
e. any person acting with the permission of the authority.
Every such application shall be presented within six months
from the date of which the minimum wages and other
amounts become payable. It may be admitted after six
months, when the applicant satisfies the authority that he had
sufficient cause for not making the application within such
period.
 Amount of Compensation

When an application is entertained, the authority shall hear the

applicant and the employer, or give them opportunity to be heard.
After such further inquiry, if any, as it may consider necessary, may
direct, without prejudice to any other penalty to which employer may
be liable under this Act,
i. in case of claim arising out of payment of less than the minimum
rates of wages, payment to employee of the amount by which the
minimum wages payable to him exceed the amount actually paid,
together with the payment of such compensation as the authority
may think fit not exceeding ten times the amount of such excess.
ii.in any other case, the payment of the amount due to employee,
together with the payment of such compensation as the authority
may think fit, not exceeding ten rupees. The authority may direct
payment of such compensation in cases where the excess or the
amount due, is paid by the employer to the employee before the
disposal of the application.
Iii. If the authority is satisfied while hearing the
application that it was either malicious or vexatious, it
may direct the applicant to pay to the employer a penalty
not exceeding Rs.50
iv. any amount directed to be paid , may be recovered by
the authority as if it were fine imposed by the authority as
a magistrate.
v. every direction of the authority under sec.20 shall be
final
vi. the authority shall have all powers of the civil court
under the code of civil procedure 1908 for the purpose of
taking evidence, enforcing the attendance of witness,
and compelling the production of documents
 Single application of a Number of
Employees

A single application may be presented on behalf

of or in respect of any number of employees in the
scheduled employment in respect of which
minimum rates of wages have been fixed.
In such cases maximum compensation which may
be awarded shall not exceed ten times the
aggregate amount of such excess or ten rupees
per head, as the case may be.
 Offences and penalties
Any employer who :
a.pays to any employee less than the minimum
rates of wages fixed for tat employees class of
work, or less than the amount due to him under
the provision of te Act, or
b. contravenes any rule or order made , shall be
punishable with imprisonment which may extend
to six months or with fine which may extend to
Rs.500, or with both . In imposing such fine, the
court shall take into consideration, the amount of
any compensation already awarded against the
accused in any proceedings taken under sec.20
 Offence by companies

If the person committing any offence under the

Act is a company, every person who, at the time
of the offence was committed, was in charge of,
and was responsible to, the company for the
conduct of the business of the company as well
as the company shall be deemed to be guilty of
the offence and shall be liable to be proceeded
against and punished accordingly.
• POWERS OF THE GOVERNMENT
• Power to Grant Exemptions and Execptions(sec 26)
• The appropriate Government may:
• direct that the provisions of this Act shall not apply in relation to the
wages payable to disabled employees;
• exempt by notification in the official Gazette some specified scheduled
employments from the application of some or all of the provisions of
the Act;
• direct that the provisions of the Act shall not apply to the wages
payable by an employer to a member of his family who is living with
him and is dependent on him.
• The appropriate government may direct by notification in the
official Gazette that the provisions of this Act or any of them shall not
apply in relation to the employees who are in receipt of wages
exceeding the prescribed limit.
• Power to add to schedule (sec. 27)
The appropriate government, after giving notification
in the official Gazette not less than three month's notice
of its intention so to do, may by alike notification add to
the schedule any employment in respect of which it is of
opinion that minimum rates of wages should be fixes
under this Act, and there upon the schedule shall in its
applications to the state be deemed to be amended
accordingly.
• Power to give Directions (sec. 28)
The Central Government may give directions to a
state Government regarding the execution of this Act in
the state.
• Power to make Rules (sec. 29)
The Central Government may, subject to the condition
of previous publication, by notification in the official
Gazette, make rules prescribing the term of office of
the members, the procedure to be followed in the
conduct of business, the method of voting, the manner
of filling up casual vacancies in membership and the
quorum necessary for the transaction of business of
the Central Advisory Board.
• Power to make rules (sec. 30)
The appropriate government may, subject to the
condition of previous publication ,by notification in the
official Gazette make rules for carrying out the
purposes of this Act .
 Obligation of Employers
• Under the Act, it is the obligation of every employer to;
• Pay to every employee engaged in a scheduled employment
under him the minimum rates of wages in case fixed by the
Government without any deduction, except as may be
authorized under the payment of wages act, 1936;
• observe all directions which may be issued under the act in
regard to normal working hours, weekly day of rest with wages
and overtime rates;
• maintain registers and records as required by the Government
showing particulars of employees' work performed by them,
wages paid to them and receipts given by them;
• issue wage books of slips to employees in respect of minimum
rates of wages if required by the Government, and make
authenticated entries in such wage books or wages slips.
 Right of workers
Every worker has a right to;
• receive minimum wages, including overtime
wages , as fixed and notified by the Government,
and
• file claims for short payments within six months
from the date the minimum wages become
payable. Delay in filing the claim may be
condoned, if there is sufficient cause.