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    MINIMUM RATE OF WAGES MINIMUM WAGES MINIMUM RATEOF WAGES

    MINIMUM RATE OF

    WAGES

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    a

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    wages Act waspassed in 1948.

    This Act provides the procedure for

    fixing theMinimum wagein respect of

    suchemploymentswhich are

    mentioned in

    MEANING

    MINIMUM WAGES MINIMUM WAGES MINIMUM WAGES

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    `Minimum wage isan event must be paid,

    irrespective of theextent of profits, thefinancial condition of

    the establishment orthe availability ofworkment on lower

    wages.

    The minimum wageis independent of thekind of industry and

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    Cost Of LivingIndex Number [S-

    2(D)] Cost ofliving indexnumber in

    relation toemployees in anyscheduledemployment inrespect of which

    DIFINITION

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    The index number

    Ascertained anddeclared

    By the competentauthority bynotification in the

    Official Gazette

    To be the cost ofliving index number.

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    OBJECTIVESThe object of this Act secure the welfare of the workers in acompetitive market by fixing the minimum rates of wagesin Certain Employments.

    This Act provides the procedure for fixing the

    Minimum Wage In Respect Of Such EmploymentsWhich Are Mentioned In The Schedule Attached ToThis Act.

    Initially this Act was intended to apply to industrieswhere labour was unorgainsed and poorly paid.

    Now, it applies to a number of employments whichare listed in the schedule to the act.

    This Act is intended to prevent exploitation of

    labour.

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    FIXING OF MINIMUM RATES OFWAGES:[S.3]

    The provision relating to fixation of minimum ratesof wages as given in [S-3] may be given as follows :

    The appropriate government may fix minimum rates ofwages which may be in the form of-

    Minimum rates of wages fortime work {minimum time rate}

    Minimum rates of wages for

    piece work {minimum piecerate}

    A minimum rates in respect ofovertime work done {overtimerare}

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    1)Appropriate government may fix differentminimum rates of wages for

    Different scheduled employments Different class of work in thescheduled employments Adults, adolescents, children and

    apprenticesDifferent localities.

    2)Minimum rates of wages may be fixed by :

    The hourThe dayThe monthOr by such other larger wageperiod a may be prescribed

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    The concept of minimum rates of wages does notimply that there should be an absolute uniform rateof wages for all employees. There cab be variation inthe minimum rates of wages depending upon.

    NO ABSOLUTE UNIFORMITY IN RATES :

    1) Nature of work

    2) Degree of education

    3) Training and skill required

    for a job.

    4) The conditions of work

    5) The hazards of the

    occupation.

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    Procedure for fixing and revisingminimum wages:[S.5]

    There are 2 separate methods for fixing and revisingMinimum Rates of Wages and the object of both the procedures is to enable the government to reach abalanced conclusion relating to fixation of the

    minimum wage.

    Appointment of Committee

    1. The government may appoint as many committees andsubcommitteesto fixing a Minimum Rates of Wages

    3. If no date is mentioned then on the expiry of 3months from the date of issue of the notification

    2) Such wages come into force on the datementioned in the notification.

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    BY A NOTIFICATION :

    The appropriate government may by a notificationpublish its proposals about the fixation of Minimum Ratesof Wages.

    For the information of all the persons likely to be

    affected thereby.

    Such date shall not be less than 2 months from the dateon which the proposals have been notified.

    Such Minimum Rates of Wages come into force from thedate mentioned in the notiicaiton.

    If no date is mentioned then the expiry of 3 months from

    the date of issue of the notification.

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    OTHER PROVISIONS

    1. Wages in kind:[S-11]

    2.Wages For Two Or More Classes OfWork :[S-12]

    3.Fixing Hours For Normal WorkingDay : [S-13]

    4.Rate of Overtime :[S.14]

    5.Maintenance of registers andrecords :[S-18]

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    CASE STUDYExpress Newspapers Vs. Union Of India

    `

    The supreme court observed thatthe minimum below which noindustry should be allowed to goon. Such wage must be fixed at alevel above the bare minimumrequired for more subsistence andbare needs of the worker and his

    family and must provide also forthe preservation of the efficiency ofthe worker, for some measure ofeducation for his children, medical

    requirements and amenities.

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    Bhopal textile ltd. Vs. State of MP

    The Minimum Ratesof Wages are fixed,having regard to costof living index and

    his family. The fixation of the Minimum Rates ofWages does not,

    therefore, take intoconsideration theindustrys capacityto pay.

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