Minimum Wages Act, 1948

Object Of The Act

To provide for fixing minimum rates of wages in certain employments

Minimum Rates Of Wages

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

Fixing Working Hours

  • Normal working hours shall constitute a normal working day, inclusive of one or more specified intervals.
  • To provide for a day of rest in every period of seven days with remuneration.
  • To provide for payment for work on a day of rest at a rate not less than the overtime rate. Sec. 13

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 a 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(11/2 times for agriculture labour) Sec. 14

Working For Less Than Normal Working Days

A worker, 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. Sec.15

Fixation Of Minimum Rates Of Wages

The appropriate government to fix minimum rates of wages for the employees employed in para 1 or para B of Schedule either at 2 or 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

  • Time Work
  • Piece work at piece rate
  • Piece work for the purpose of securing ot such employees on a time work basis
  • Overtime work done by employees for piece work or time rate workers. Sec.3

Procedure

Procedure for fixing and revising Minimum Rates of Wages will be through:
Appointing Committee
Issue of Notification etc.
Sec.5

Payment For Minimum Wages

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

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 be paid to him. Sec.16

Claims By Employees

Claims to be filed by employee, before the Authority constituted under the Act, within 6 months.
Compensation upto 10 times for under or non-payment of wages. Sec. 20

Compensation 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. Sec.9

Maintenance Of Registers And Records

  • Register of Fines - Form I Rule 21(4)
  • Annual Returns - Form III Rule 21 (4-A)
  • Register for Overtime - Form IV Rule 25
  • Register of Wages - Form X,
  • Wage slip - Form XI,
  • Muster Roll - Form V Rule 26
  • Representation of register - for three year Rule 26-A. Sec-18

Penal Provision

Imprisonment upto 6 months or with fine upto Rs.500:-

  • - For paying less than minimum rates of wages.
  • - For contravention of any provision pertaining to fixing hours for normal working day etc. Sec-20