| Details | Information |
|---|---|
| Act Year | 1948 |
| Enactment Date | March 15, 1948 |
| Short Title | The Minimum Wages Act, 1948 |
| Purpose of the Act | To set minimum wage rates for certain types of employment. |
| Ministry Responsible | Ministry of Labour and Employment |
| Enforcement Date | March 15, 1948 |
Section 1: Title and Scope
– This law is called the Minimum Wages Act, 1948.
– It applies to the entire country of India.
Section 2: Key Definitions
– Adolescent: A person aged between 14 and 18 years.
– Adult: A person aged 18 years or older.
– Child: A person below the age of 14 years.
– Appropriate Government: Refers to either the Central Government (for industries like railways, mines, and ports) or the State Government (for other industries).
– Employer: Anyone who employs one or more people in any specified employment.
– Employee: A person hired to perform manual, clerical, skilled, or unskilled work in specified jobs.
– Wages: The total monetary payment an employee receives, excluding things like house accommodations, travel allowances, pension contributions, and gratuities.
Section 3: Setting Minimum Wages
– The government (Central or State) must set minimum wages for specific types of jobs.
– These rates should be reviewed and revised, if necessary, at intervals not exceeding five years.
– Minimum wages can vary based on type of work, location, or the age group of employees (children, adolescents, adults).
– Different types of wages can be set, including wages for time-based work, piece work, or overtime.
Section 4: Structure of Minimum Wages
– Minimum wages can include:
– A basic wage plus an allowance that adjusts according to the cost of living.
– A combination of basic wage and cost of living allowance, with or without benefits like discounted essential supplies.
– A consolidated rate that includes both basic wages and allowances.
Section 5: Procedure for Fixing Wages
– To set or revise minimum wages, the government must:
– Form committees to advise on the rates, or
– Publish proposals and allow the public to provide feedback.
– After reviewing feedback or committee recommendations, the government will officially set or revise the minimum wages.
Section 6. [Omitted]
This section, which previously dealt with “Advisory Committees and Sub-committees,” has been omitted from the Minimum Wages Act as per the Minimum Wages (Amendment) Act, 1957, through Section 5.
This means that any references to advisory committees or sub-committees previously outlined under Section 6 no longer apply or exist within the current law.
Section 7: Advisory Boards
– Advisory Boards are set up to assist the government in coordinating and advising on the setting and revision of minimum wages.
Section 8: Central Advisory Board
– The Central Advisory Board is responsible for advising both Central and State Governments on minimum wage matters. It is made up of representatives of employers, employees, and independent members.
Section 9: Composition of Committees
– Committees for setting or revising wages must include equal numbers of representatives from employers and employees, along with independent members.
Section 10: Correction of Errors
– The government can correct any clerical or calculation errors in wage-related orders through notifications published in the Official Gazette.
Section 11. Wages in Kind
1. Minimum wages under this Act must be paid in cash.
2. If there’s a tradition of paying wages in kind (such as goods), the government may allow part or full payment in kind, through an official notification if deemed necessary.
3. The government can also allow the provision of essential items at reduced prices if needed, through a notification.
4. The value of wages paid in kind or items supplied at a discount must be calculated in a prescribed way.
Uttar Pradesh Amendment:
– Employers must pay wages via cheque, NEFT, ECS, or other banking methods.
– For temporary or casual workers, cash payments of up to ₹5,000 can be made every three months, with the worker’s written consent and an Aadhaar card.
Section 12. Payment of Minimum Wages
1. Employers must pay at least the minimum wage to employees working in scheduled employment, as set by a government notification. Only authorized deductions are allowed.
2. This section does not override the provisions of the Payment of Wages Act, 1936.
Section 13. Working Hours
1. For scheduled employment with fixed minimum wages, the government can:
– Define working hours for a normal day, including breaks.
– Ensure a day of rest every seven days for employees, with pay for that day.
– Set payment for working on a rest day, at a rate no less than overtime pay.
2. Exceptions apply to specific job roles, such as emergency work, intermittent jobs, or work that depends on external factors (e.g., weather).
3. Jobs considered “intermittent” will be declared by the government based on inactive work periods where employees are not required to actively work.
Section 14. Overtime
1. Employees working beyond normal hours must be paid overtime, as per the overtime rate set by law or by the government. 2. This section doesn’t affect other laws, like the Factories Act, which may have additional provisions for overtime.
Section 15. Wages for Less than Full Day
If an employee works less than a full day but completes their assigned work, they are entitled to full wages. However, this doesn’t apply if the employee refuses to work or other specific circumstances as prescribed by law.
Section 16. Wages for Multiple Job Roles
If an employee performs more than one type of work with different wage rates, the employer must pay wages for each task based on the applicable minimum wage rate for that role.
Section 17. Piecework Wages
For employees on piecework, if a minimum time rate (not a piece rate) is set, the employer must pay them at least the minimum time rate.
Section 18. Record Keeping by Employers
1. Employers must maintain detailed records of employees, work performed, wages paid, and other relevant information in the prescribed format.
2. Employers must display certain notices related to employment and wages at workplaces.
3. The government may issue rules for providing wage books or slips to employees, detailing how these records should be maintained.
Section 19. Inspectors
1. The government can appoint Inspectors to enforce the Act, and assign them areas of responsibility.
2. Inspectors have the authority to enter workplaces, inspect wage records, and question employees or employers to ensure compliance. They can also seize relevant documents or take copies if needed.
3. Inspectors are considered public servants under the Indian Penal Code.
4. Anyone asked to provide information or documents by an Inspector must comply, as per legal requirements.
Section 20. Claims for Unpaid Wages
1. The government can appoint specific officers to handle wage-related claims, such as underpaid wages, unpaid overtime, or other related payments.
2. An employee (or their representative) can file a claim for unpaid wages within six months. Delayed claims may be allowed if valid reasons are given.
3. The authority hearing the claim can direct the employer to pay the difference between the wages paid and the minimum wage, along with compensation. Compensation can be up to 10 times the unpaid amount.
4. If the claim is found to be malicious, the employee may be fined up to ₹50.
5. Any amounts ordered by the authority can be recovered like a fine.
6. The authority’s decision on wage claims is final. 7. Authorities hearing wage claims have the same powers as a Civil Court, such as summoning witnesses and requiring the production of documents.
Section 21: Single Application for Multiple Employees
An application can be submitted under Section 20 on behalf of multiple employees working in a job where minimum wages are fixed. The maximum compensation that can be awarded cannot exceed ten times the total amount of excess wages, or ten rupees per person. The authority may also combine multiple applications for employees in the same type of employment into one, following the same rules.
Section 22: Penalties for Wage Offenses
An employer can face up to six months of imprisonment or a fine of up to five hundred rupees, or both, if they:
– Pay less than the fixed minimum wage.
– Break any rule under Section 13
However, while imposing a fine, the court must consider any compensation already awarded in previous cases.
State Amendments:
– Kerala: The fine is increased to one lakh rupees.
– Karnataka: The fine range is from five thousand to ten thousand rupees.
Section 22A: Penalties for Other Offenses
If an employer breaks any other provision of this Act or related rules, they can be fined up to five hundred rupees.
State Amendments:
– Kerala: fine can be up to two lakh rupees, with an additional fine for continued violations.
– Karnataka: The fine is up to ten thousand rupees.
Section 22B: How Offenses Are Handled
A court cannot take action on complaints unless specific conditions are met. For offenses related to wage payment, the complaint can only be made if the facts have been presented under Section 20 and partially or fully granted. Complaints under Section 22A require approval from an inspector.
Section 22C: Offenses by Companies
If a company violates this Act, the people in charge (like directors or managers) can be held responsible and face penalties unless they prove they had no knowledge of the offense or took all steps to prevent it. If the violation was intentional, those individuals will also be punished.
State Amendments:
– Uttar Pradesh and Manipur: Added provisions for the compounding of offenses, where first-time offenses can be settled with a fine instead of prosecution.
Section 22D: Payment of Unclaimed Wages
If an employee cannot be paid (for example, due to death or an unknown whereabouts), the employer must deposit the amount with a designated authority, which will manage the funds according to the rules.
Section 22E: Protection Against Attachment of Employer’s Assets
Any amount an employer has deposited with the government to secure a contract cannot be used to settle debts or liabilities, except those owed to employees working under the contract.
Section 22F: Application of Payment of Wages Act
The government can issue a notification to apply the rules of the Payment of Wages Act, 1936, to certain jobs. Inspectors appointed under this Act will enforce these rules.
Section 23: Employer Exemption in Certain Cases
An employer charged with an offense can avoid liability by proving that another person (such as a manager or supervisor) committed the offense without their knowledge, and that they took all necessary steps to enforce the law.
Section 24: Bar on Legal Suits
No legal suit can be filed if:
– The matter is already the subject of an application under Section 20.
– A decision has been made under Section 20 in favor of the employee.
– It has been ruled in another proceeding that no wages are due.
– It could have been handled under Section 20.
Section 25: Contracts Against the Act
Any agreement where an employee gives up their right to minimum wages or any benefit under this Act is void, whether it was made before or after this Act came into effect.
Section 26: Exemptions and Exceptions
The government may allow exceptions to this Act for disabled employees or certain groups of employees for specific reasons. The Act also does not apply to wages paid to a family member living with and dependent on the employer.
Section 27: Adding Jobs to the Schedule
The government can add jobs to the Schedule by giving at least three months’ notice, indicating that minimum wages should be fixed for those jobs.
Section 28: Central Government’s Power to Issue Directions
The Central Government can direct State Governments on how to implement the Act within their states.
Section 29: Rule-Making Power of Central Government
The Central Government can create rules for how the Central Advisory Board operates, including voting methods, filling vacancies, and quorum requirements.
Section 30: Rule-Making Power of State Governments
State Governments can make rules to implement the Act. These may include:
– Procedures for meetings and voting.
– How to summon witnesses and present evidence.
– Methods for calculating wages in kind.
– Hours of work, rest days, and wage slips.
– Powers of inspectors.
– Court fees and costs.
Section 30A: Presentation of Central Government Rules to Parliament
Every rule made by the Central Government under this Act must be presented before Parliament for a total of thirty days. Parliament may modify or annul the rule, but any actions already taken under it will remain valid.
Section 31. Validation of Fixation of Certain Minimum Rates of Wages (Simplified)
This section addresses the validity of minimum wage rates set by the government during specific periods, ensuring that these rates are considered legally fixed, even if the date for fixing them had already passed at that time.
1. Periods Covered:
– From April 1, 1952, to the start of the Minimum Wages (Amendment) Act, 1954.
– From December 31, 1954, to the start of the Minimum Wages (Amendment) Act, 1957.
– From December 31, 1959, to the start of the Minimum Wages (Amendment) Act, 1961.
2. Fixation of Minimum Wages:
– If the government set minimum wages during these periods, thinking it was acting according to Section 3(1)(a) of the original Minimum Wages Act (or its amendments), those rates are considered legally valid.
– These rates cannot be challenged in court just because they were set after the specified date had passed.
3. Protection from Punishment:
– No person will face penalties or punishment if, during these periods, they paid wages lower than the minimum wage set by the government.
– Also, individuals will not be penalized for failing to comply with orders or rules under Section 13 during the mentioned periods.
This ensures that past wage fixations remain valid and protects employers from penalties related to underpayment or non-compliance during these specific times.