All about Minimum Wages Act, 1948

The object of the Act

The object of this act is to provide fix minimum rates of wages to employees in certain employments.

Applicability:

This act is applicable to every factory, whether in control of any government, local authority or any private ownership where scheduled employment in respect of which minimum wages have been fixed.

“Certain employments means a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed. Any scheduled employment which is under the control of any Government in India and local authority.”

Note: “Scheduled Employment” means employment specified in the Schedule or any process or branch of work forming part of such employment.”

Fixation of Minimum Rates of Wages –

• The appropriate government has the right to fix minimum rates of wages. The employees should be employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27.
• To make review at such time intervals not exceeding five years the minimum rates or so fixed and revised the minimum

The government can also fix

• Minimum wages for time work
• A minimum wages for piece work at the piece rate
• Piece work for the motive of securing to such employees on a time work basis
• Overtime work was done by employees for piece rate work or time rate

Minimum Rates of Wages –

Any minimum rate of wages fixed or revised by the government in respect of scheduled employment may consist of –

1. The basic rate of wages
2. Variable dearness allowance
3. Cash value of concessions if any.

Procedure for fixing and revising Minimum Rates of Wages-

The government may appoint as many Committee and Sub- Committee as it considered necessary for the purpose of fixing or revising the minimum rate of wages. After the formation of Committee, that Committee will issue a Notification in the official gazette for the information of the persons likely to be affected thereby and specify a date, which is not less than two months from the date of the notification, on which the proposals will be taken into consideration.

Overtime-

Overtime is to be fixed by the hour, by the day or by such a longer wage-period work 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 wages (1½ times or for agriculture labour).

The composition of Committee-

Members of the committee are representative of employer and employee in schedule employer in equal number and independent persons not exceeding 1/3rd or its total number.  One member is to be appointed by the Chairman.

Payment of Minimum Rates of Wages-

The employer needs to pay to every employee engaged in schedule employment at a rate which is not less than minimum rates of wages as fixed by the Notification by not making deduction other than prescribed.

Fixation of Hours for Normal Working-

• Shall constitute a normal working day inclusive of one or more stated intervals.
• To provide for a day of rest in every period of 7 days.
• To offer for payment for work on a day of rest at a rate not less than the overtime

Wages of workers who work for less than normal working days in the factory-

• Workers are to 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

Wages for two class of work-

• If an employee does two or more types of work to each of which has a different minimum rate of wages is applicable, wages at not less than the minimum rate in the case of each class.

Minimum time rate wages for piece work-

 Minimum time rate for piece work is not less than minimum rates of wages as fixed.

Claims by employees- 

• Claims are to be filed by the employee before authority constituted under the Act within 6
• Monetary compensation up to 10 times on under or non-payment of wages

Maintenance of registers and records-

• Register of Fines – Form I
• Annual Returns – Form III
• Register for Overtime – Form IV
• Register of Wages–Form X,
• Wages slip–Form XI,
• Muster Roll–Form V
• Representation of register – for three years.