The Minimum Wages act aims at making provision for statutory fixation of Minimum rates of wages in a number of industries. This act aims to prevent exploitation of labour by payment of wages which are necessary for normal and reasonable need of a workmen and his family.
Applicability of Act
This Act is applicable to all employments described in the Act i.e. minimum Wages have to be paid to all the employees of the employments described in the Act
Definition
"Employer"
means any person who employs whether directly or through another person or whether on behalf of himself or any other person one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act.
"Wages"
means all remuneration capable of being expressed in terms of money which would if the terms of the contract of employment express or implied were fulfilled be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance but does not include - (i) the value of - (a) any house accommodation supply of light water medical attendance or (b) any other amenity or any service excluded by general or special order of the appropriate government; (ii) any contribution paid by the employer to any person fund or provident fund or under any scheme of social insurance; (iii) any traveling allowance or the value of any traveling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge;
"Employee"
means any person who is employed for hire or reward to do any work skilled or unskilled manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up cleaned washed altered ornamented finished repaired adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate government; but does not include any member of the Armed Forces of the Union.
Main Provisions of the Act
Fixing Minimum Rates of Wages –
· Appropriate Government shall fix minimum rates of wages for all employments specified in the Schedule of the Act
· Review of Minimum wages – The appropriate Government shall review the minimum wages at such intervals as it may deem fit. However, such a review shall be done before Five years from date of fixing minimum wages.
Wage period
The Minimum wages may be fixed for different wage periods like
· By the Hour,
· By the Day,
· By the month, or
· By other larger wage period
Different Minimum Wages may be fixed by the Government for :
· Different employments (specified in the schedule)
· Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in the same employment
· Adults, adolescents, children and apprentices
· Different localities.
Minimum rates of Wages fixed by the Government may consist of
· Basic + Special Allowance ( which varies with the cost of living index)
· Basic + Cash value of concessional supply of materials like food, clothes, etc
· An All inclusive rate which includes Basic + Cost of Living Allowance + Cash value of concessional supply of materials
Fixing minimum Rates of Wages
For fixing Minimum rates of wages, the Government may :
Publish its proposals in the official gazette asking from comments from the affected parties, Or.
Constitute committees/sub-committees for the purpose
The committees/sub-committees and advisory boards constituted by the Government consist of equal number of members of :
· Employers,
· Employees and
· Independent persons
Wages in Cash
The wages have to be paid in Cash Only. However, permission can be taken from the government where payment of wages in kind when the same is as per custom or concessional supply of materials is made to the employees
Deductions from Minimum Wages
deductions from Minimum Wages like PF, ESI, Advances , etc ( as mentioned in Payment of Wages Act 1936) are permitted.
Wages to workman who works less than normal working day
in such cases Full Wages for normal day’s work have to be paid to workman. However, a workman is not entitled to wages for a full normal working day when he is unwilling to work even though work is made available by the employer.
Applicability of Act
This Act is applicable to all employments described in the Act i.e. minimum Wages have to be paid to all the employees of the employments described in the Act
Definition
"Employer"
means any person who employs whether directly or through another person or whether on behalf of himself or any other person one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act.
"Wages"
means all remuneration capable of being expressed in terms of money which would if the terms of the contract of employment express or implied were fulfilled be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance but does not include - (i) the value of - (a) any house accommodation supply of light water medical attendance or (b) any other amenity or any service excluded by general or special order of the appropriate government; (ii) any contribution paid by the employer to any person fund or provident fund or under any scheme of social insurance; (iii) any traveling allowance or the value of any traveling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge;
"Employee"
means any person who is employed for hire or reward to do any work skilled or unskilled manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up cleaned washed altered ornamented finished repaired adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate government; but does not include any member of the Armed Forces of the Union.
Main Provisions of the Act
Fixing Minimum Rates of Wages –
· Appropriate Government shall fix minimum rates of wages for all employments specified in the Schedule of the Act
· Review of Minimum wages – The appropriate Government shall review the minimum wages at such intervals as it may deem fit. However, such a review shall be done before Five years from date of fixing minimum wages.
Wage period
The Minimum wages may be fixed for different wage periods like
· By the Hour,
· By the Day,
· By the month, or
· By other larger wage period
Different Minimum Wages may be fixed by the Government for :
· Different employments (specified in the schedule)
· Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in the same employment
· Adults, adolescents, children and apprentices
· Different localities.
Minimum rates of Wages fixed by the Government may consist of
· Basic + Special Allowance ( which varies with the cost of living index)
· Basic + Cash value of concessional supply of materials like food, clothes, etc
· An All inclusive rate which includes Basic + Cost of Living Allowance + Cash value of concessional supply of materials
Fixing minimum Rates of Wages
For fixing Minimum rates of wages, the Government may :
Publish its proposals in the official gazette asking from comments from the affected parties, Or.
Constitute committees/sub-committees for the purpose
The committees/sub-committees and advisory boards constituted by the Government consist of equal number of members of :
· Employers,
· Employees and
· Independent persons
Wages in Cash
The wages have to be paid in Cash Only. However, permission can be taken from the government where payment of wages in kind when the same is as per custom or concessional supply of materials is made to the employees
Deductions from Minimum Wages
deductions from Minimum Wages like PF, ESI, Advances , etc ( as mentioned in Payment of Wages Act 1936) are permitted.
Wages to workman who works less than normal working day
in such cases Full Wages for normal day’s work have to be paid to workman. However, a workman is not entitled to wages for a full normal working day when he is unwilling to work even though work is made available by the employer.
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