Ilaw Minimum Wages Act 1948

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THE MINIMUM WAGESACT, 1948



-WORKERS IN

GARMENT INDUSTRY

PRESENTATION BY:

Pooja Tandon,13Vishnupriya Jutti,03

Anamika Mehta,07

Se jal Mehta,06

Pooja Navale,18

Priyanka Salve,10

WORKERS IN

STEEL INDUSTRY

WORKERS IN BUTTON-

INDUSTRY



Over the years, in a country like India, except certain highly organized

industries, the labour as a whole was not able to put a face of collectivebargaining and look after their own interests. Thus, Minimum Wages Act,

1948 was enacted in the country with the OBJECTIVE:

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Minimum Wag es Act, 1948

To provide minimum wages to the workers working in

organized sector(scheduled employment)

To stop exploitation of the workers

To empower the government to take steps for fixing minimum

wages and to revise this wages within a period of five years.

To provide for appointment of Advisory Committees &

Advisory Boards, having equal representatives of employers

and workers.



Applicability of the Act

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y The Act extends to whole of India.

yTo any employment in any State if it employs 1000employees.

y The Act will not apply to employees in any

undertaking owned by the Central Govt. or of

Federal railway, except with the consent of theCentral Govt.

Thus, the wages have to be statutorily paid.

RAILWAY

WORKERS



Who is an employee?

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y

EMPLOYEE is anyone(1) Employed for Hire or Reward

(2)To do skilled or unskilled work

(3) Manual or Clerical

(4) JobWorker(5) Any person declared by the appropriate

Government as Employee but, does not include

any member of armed forces

y

EMPLOYEE is anyone(1) Employed for Hire or Reward

(2)To do skilled or unskilled work

(3) Manual or Clerical

(4) JobWorker(5) Any person declared by the appropriate

Government as Employee but, does not include

any member of armed forces

WORKERS IN

GARMENT

INDUSTRY



What is wag es?

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section 2(h)y

Wages means all remuneration capable of beingexpressed in terms of money. It includes house rentallowance but does not include

value of house accommodation, supply of light, water,medical attendance

Value of any other amenity provided, if excluded byGovernment order

Contribution to pension fund or provident fund orinsurance

Traveling allowance special expenses incurred by

the nature of employment Gratuity payable on discharge.



Minimum wag e f ixation (section 3)

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1. The appropriate government shall fix and revise theminimum wages payable to employees employed inan employment specified in part I & II of theSchedule.

2.The rate can be fixed ona. time work basisb. piece work basis

c. guaranteed rate basiswhen rate is fixed on piece work basis and

d. overtime rate basis.



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3. Different minimum wage rates can be fixed for

y different scheduled employments

y different class of work in the same scheduledemployment

y adults, adolescents, children

and apprentices

y

Different localities.

4. Minimum rates can be fixed on basis of hour, day ormonth, or even longer period.

BASIS: the fixation of minimum wages depends on various factorslike Socio-economic and agro-climatic conditions, prices of essential commodities, paying capacity and the local factorsinfluencing the wage rate.



Minimum Rate of wag es (section 4)

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Any minimum rate of wages fixed or revised by the

appropriate govt. may consist of,y a basic rate of wages and a special allowance at a rate to

be adjusted at such intervals and in such a manner as the

govt. may direct OR

y A basic rate of wages with or without allowance for cost

of living allowance based on cost of living index number.

OR

y

An all inclusive rate allowing for basic wage, cost of livingallowance and

cash value of concession,

if any



Procedure for f ixation of min wag es(sec.5)

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1. Committee method : a committee is appointed to hold

enquiry and suggest minimum wages to be fixed.

2. Notification Method : notification is published in the

official gazette and 2 months period is given to

different parties to suggest their case. Based on therepresentations, the govt. will fix the minimum wages.

The

notification can apply

from retrospective effectalso.



AUTHORITIES:

Advisory board«

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Government is required to constitute Advisory Board to

recommend minimum wages. The recommendations of

Advisory Board are not binding on Government.

Central Advisory Board« It is constituted from persons nominated by central

government.

And consist of representatives of employers, employeesand independent members (up to 1/3rd of the total

strength).



Can you pay wag es in kind?

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y Sec. 11 of Min. Wages Act says that you can only make

the payment in cash.

y If it is a custom to make payment wholly or partly in

kind, the appropriate govt. may permit it.

y

It may by notification inthe Official gazette, authorize

the provision of essential

commodities at

concessional rates.



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Payment of Minimum rates of wages : Sec.12

It is absolutely necessary for an employer to pay every employeeengaged in scheduled employment the Minimum Rates of wages fixed by

the Government without any deduction except those as ma be authorised.

Are working hours f ixed?y Sec. 13: the govt. may fix the hours of work. It may

provide for rest day and interval also.



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Will there be overtime?

Sec. 14: if minimum wages is fixed by hours, then theworkers will be paid overtime if he works more

than the hours prescribed. The overtime rate will be

as fixed in this law or other law as applicable.

Sec. 15:He will receive minimum wages

However, he will not receive minimum wages if heis not willing to work or circumstances as may be

prescribed.

if a worker works less than normal hours



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WAGES FOR TWO OR MORE CLASSESOF WORK

Section 16: Where an employee does two or more classes of work to each of

which adifferent minimum rate of wages is applicable the employer shall pay

tosuch employee in respect of the time respectively occupied in each

suchclass of work wages at not less than the minimum rate in force inrespect

of each such class

MAINTENANCE OF REGISTRATION AND RECORDS

Sec. 18: Every employer shall maintain Registration and records giving:

Particulars of employees.

Work performed by employees.

Wages paid to employees.

Receipts given by the employees.

Other particulars and in such forms

may be prescribed.



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InspectorsSec. 19 :The appropriate Government may, by notification in the Official

Gazette, appoint such persons as it thinks fit to be Inspector for the purposes

of this Act, and define the local limits within which they shall exercise their

functions.

He may enter, any place where employees are employeed,work is given out

to an out-worker covered under this act, for the purpose of examining any

register,record of wages or notices required for the production for inspection,

examine any person whom he finds in any such premises or an employee to

whom work is given over there,

require any person giving out-work and any out-workers, to give any

information,

seize or take copies of documents,

exercise such other powers as may be prescribed.



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ClaimsSec. 20:The Appropriate Government may appoint an authority to hear and decide

the claims relating to payment -

Of less than Minimum rates of Wages

for days of rest

For work done on days of rest

For the overtime.

Who may apply:

Employee himself or

Any legal partitioner

Registered Trade Union

Any Inspector

Any person with the permission of

authority



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Penalties for Offences : (Sec.22 ,22A)

Any employer shall be punishale with Imprisonment which

may extend to 6 months Or fine upto 500 Rs. Or both or ±

1. Payment less than Minimum Rates of wages,

2. Contravention of any rule or order under [s-13] relating to working

hours.

An employer shall be punishable with fine upto 500 rs for

contravention of any other provision of the act, where no

other penalty is provided.



Employer to close the unit, if minimum

wag es cannot be paid«

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If employer cannot pay minimum wages, he has to close downthe undertaking. Paying capacity is not relevant considerationfor rate of minimum wages.

Deepak Photos v. State of Kerala 2001

Minimum wages are payable irrespective of financial positionof individual employer Hindustan Aer onautics v. Workmen AIR

1967

WORKERS IN

BUTTON

INDUSTRY



If you pay more than minimum wag es ²

fair «.

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y Even if State Government notification prescribes variable dearnessallowance which is linked with cost of living index, amount paidon basis of DA is not to be taken as an independent component of minimum wages, but as part and parcel of process of computingminimum wages. Hence, in cases where employer is paying total

sum which is higher than minimum rates of wages fixed under theAct including the cost of living index (VDA), he is not required topayVDA separately.H ar ilal Jechand Doshi v. M aharashtra General Kamgar U nion 2000



Some interesting facts

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y There are 45 scheduled employments in Central sphere and 1222

employments in State sphere.y It includes workers employed in unskilled, semi-skilled and

skilled sectors like shawl & carpet weaving, different mines,

construction or maintenance of roads, agriculture or in

conjunction with farm operations, industries and factories etc. as

specified in Schedule I of the Act.

y Due to widespread disparity in the minimum wages throughout

the country The National Floor Level Minimum Wage is fixed at Rs

80 per day

by the govt.



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Minimum wages in Delhi (per day)

y Skilled Rs. 142.10

y Semi-skilled Rs. 132.20

y Unskilled Rs. 125.80

In Australia its 543.78 Australian dollars per week;

Denmark- none, nationally; instead, negotiated between unions

and employer associations; 100.65 kroner, according to theterms of the country's largest collective bargaining agreement,

negotiated in the spring of 2008 and covering almost the entire

industrial sector



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NEPAL- 4,600 Nepalese rupees a month for unskilled labor (3,050

rupees as a basic salary, and 1,550 rupees as an allowance); 4,650

NRS for semi-skilled labor; 4,760 NRS for skilled labor; 4,950 NRS

for highly skilled laborPAKISTAN- 6,000 Pakistani rupees per month, applying only to

industrial and commercial establishments employing 50 or more

workers

THAILAND-ranges from 148Thai baht to 203 baht per day,

depending on the cost of living in various provinces; set by

provincial tripartite wage committees that sometimes include

only employer representatives

UNITED KINGDOM- £ 5.80 per hour (aged 22 and older), £4.83 per

hour (aged 18-21) or £3.57 per hour (under 18 and finishedcompulsory education)

USA-the federal minimum wage is US$7.25 per hour; states may

also set a minimum, in which case the higher of the two is

controlling



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THANK YOU!!!

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Ilaw Minimum Wages Act 1948