Minimum Wages Act,1948

Minimum Wages Act,1948 | Wealthtech Speaks



Minimum Wages Act,1948

Coverage and
Minimum Wages Act extends to whole of India
and is applicable to all the establishments employing one or more Individuals
included under the Scheduled Employment list.
Every Employee working in any scheduled
employment is covered under the Act.
Minimum Wages Act is governed by the laws
laid out by the Central Government. However, it is administered by both the
Central as well as the State Governments respectively. The State Government is
free to fix minimum wage rate as per scheduled employments, make provisions,
appoint inspectors and authorized to take action relating to violation of the
Government has also appointed Advisory Boards
and Committees to investigate and advise the accordingly with regard to
fixation/revision of wages. The Board comprises of members appointed by the
Government, along with equal representation from Employers and Employees as per
the Employment Schedule.
 “Wages” means all remuneration expressed in monetary
terms payable to an employee inclusive of House Rent Allowance (HRA) but
excludes value of accommodation, supply of basic amenities, medical care,
contribution to provident/pension fund, travel expenses, reimbursement of any
other specified expense and gratuity.
Minimum Wage
Rate Fixation
State Government is empowered to fix minimum
wage rates or wages for different classes of employees employed under any
Scheduled Employment. They are also required to review and revise the same from
time to time with the stipulation that interval between revision should not
exceed 5 years. Wage fixation should be done in consideration of price index
and dearness allowance.
of Working Hours
Government may also fix number of working
hours in respect of minimum wages fixed. This includes:-
Fix number of working hours constituting a
normal working day, inclusive of one or more intervals.
Ensure a rest day is provided along with full
normal day wage on a weekly basis to the employee.
Payment of
Overtime Wages
Employees working beyond the normal working
hours are entitled to overtime wages for every hour worked in excess as per the
rates prescribed under this Act or any other law, whichever is higher.
Factories Act has provision to pay overtime
wages twice the normal wage rates.
Payment of wages should be in monetary terms unless
specified by the Government.
Employer/Establishment is bound to pay to
each and every employee employed by them, wages at a rate not less than minimum
rate prescribed for the particular class of employee as per the Act, without
any deduction apart from the ones prescribed under Payment of Wages Act.
Registers and Records
The employer is required to maintain
prescribed registers and records providing detail records of employees
employed, wages paid, and duties performed by them.
Pay slips should also be provided to the
Annual Return with respect to same should be
filed by the Employer in the succeeding year.
Any contravention of the law would attract
penalties in form of fines or imprisonment depending on the level of offence.
Employees are also entitled to file claims to
the competent authority under the Act, in cases where their rights have been violated.
If found guilty Employer will be required to pay difference in wages (less
amount paid) along with compensation to the employee.
The Schedule
(List not Exhaustive)
Employments in Mills, Godowns, Manufacturing Sector,
Employment under Local Authority
Employment in Dock and Ports

I will try to provide the Minimum Wage Rates
in my next post. 

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