REPORT ON THE WORKING OF THE MINIMUM WAGES ACT, 1948 FOR

 THE YEAR 2006

SECTION-II

II.   MAIN PROVISIONS OF THE MINIMUM WAGES ACT, 1948

Following are the main provisions of the Act

2.1     FIXING OF MINIMUM RATES OF WAGES

2.1.1 It provides for fixing minimum wages in certain employments where labour is ignorant or less organised and is vulnerable to exploitation.  Minimum wages are not to be fixed in respect of any industry in which there are less than 1,000 employees in the whole State.  (Under the 1957 amendment to the Act of 1948, this limiting condition has been substantially relaxed.)

  2.1.2     The Act provides for the fixation of

           (a)A minimum time rate

           (b)A minimum piece rate

           (c) A guaranteed time rate

          (d)An overtime rate appropriate to different occupations and different classes of        

                workers.

2.1.3    The minimum wage fixed or revised by the appropriate Government ² will include the following

(a)    A basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate government may direct, to accord as nearly as practicable with the variation in the cost of living index number ³ applicable to such workers.

(b)   A basic rate of wages with or without the cost of living allowance , and the cash value of the concessions in respect of suppliers of essential commodities at concession rates, where so authorised: or

(c)    An all inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.

(d)   The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rate shall be computed by the competent authority ⁴ at such intervals and in accordance with such directions as may be specified or given by the appropriate government.  The Act lays down that wages should be paid in cash, although it empowers the appropriate Governments for the payment of minimum wages wholly or partly in kind.

2.2      PAYMENT OF MINIMUM RATE OF WAGES

2.2.1    The employer is required to pay to every employee, engaged in a scheduled employment under him, wages at a rate not less than the minimum rate of wages notified for that class of employees without any deduction except as may be authorised.

2.3       FIXING HOURS FOR NORMAL WORKING DAY

2.3.1    In regard to any scheduled employment, minimum rates of wages in respect of which have been fixed under this Act, the appropriate Government may

(a)                fix the number of hours of work which shall constitute a normal working day, inclusive of one or more specified intervals;

(b)               provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and  for the payment of remuneration  in respect of such days of rest;

(c)        provide for payment for work on a day of rest at a rate not less than the overtime rate

 2.4      WAGES FOR TWO OR MORE CLASSES OF WORK

2.4.1    If an employee performs two or more classes of work, to each of which a different rate of wage is applicable, the employer is required to pay to such an employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.

2.5       MAINTENANCE OF REGISTERS AND RECORDS

2.5.1    Every employer is required to maintain registers and records giving particulars of employees, the work performed by them, the wages paid to them, the receipts given by them and any other required particulars.

 2.6       INSPECTIONS

2.6.1    The appropriate Government may, by notification in the Official Gazette, appoint inspectors for this purpose under the Act and define the local limits for their functions.

2.7       CLAIMS

2.7.1    The appropriate Government may, by notification in the Official Gazette, appoint Labour Commissioner or Commissioner for Workmen’s Compensation or any officer not below the rank of Labour Commissioner or any other officer with experience as a judge of a civil court or as a Stipendiary Magistrate, to hear and decide for any specified area, all claims arising out of the payment of less than the minimum rates of wages as well as payment for days of rest or for work done.

2.8       AUTHORISED DEDUCTIONS

2.8.1    The deductions can be made on account of:

(a)                Fines

(b)               Damage or Loss

(c)                Breach of Contract

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 2. As per the Act , the appropriate government means (i) In relation to any scheduled employment carried on by or under the authority of the Central Government or a railway administration or in relation to a mine, oilfield or major port or any corporation established by a Central Act, the Central Government and (ii) In relation to any other scheduled employment , the State Government.

3^.. Cost of living index number in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed , means the index number ascertained and declared by the competent authority by notification in the Official Gazette to be the cost of living index number applicable to employee in such employment.

4. Competent authority means the authority appointed by the appropriate government by notification in its Official Gazette to ascertain from time to time the cost of living index number applicable to the employees employed in the scheduled employment specified in such notification.

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