Minimum wages Act, 1948 The history of minimum wages in India Before the Minimum Wages Act of 1948, various laws, like the Payment of Wages Act (1936), sought to regulate timely payments and ensure fair remuneration for workers—but they lacked provisions for guaranteeing minimum rates of pay. The push for a law to ensure fair pay gained momentum throughout the 1930s and early 1940s, resulting in the introduction of a bill in Parliament. The Minimum Wages Act of 1948 aimed to reduce exploitation of workers and ensure the payment of minimum wages across industries, especially in vulnerable sectors. Introduction to Minimum Wages Act: The Minimum Wages Act of 1948 strives to secure the welfare of both skilled and unskilled labourers in India. This act of parliament specified the minimum wage limit for several occupations. Its main motive was to ensure that employers cannot exploit them with lower rates. The growth of a country can be measured in terms of the minimum wage rate offered to its workers which can help a country in paving its success story in the long run. Indian constitution has defined ‘Living wage’ as the level of income which helps the worker in securing a basic standard of living. This further includes comfort, good health, dignity, education etc.The India’s Minimum Wages Act 1948 is a significant piece of labour legislation in India designed to protect workers in unorganised sectors by setting minimum wages for various occupations. SCOPE AND APPLICABILITY The law's main purpose is to establish a minimum quality of living for workers in India. The Act has been amended since it was originally enacted in 1948; one of the most significant amendments was adding variable wage floors for different localities. The lowest floors are currently in Andhra Pradesh, Kerala, and Gujarat. The law was also amended to provide higher minimum wages for workers with disabilities. Other objectives of the Minimum Wages Act include: + Setting forth guidelines for resolving disputes over non- payment or underpayment of wages + Establishing and providing powers and duties of labour commissioners, inspectors, and other important officers + Giving the appropriate government the power to make other rules as needed Who the Minimum Wages Act applies to The Minimum Wages Act applies to the whole of India, ensuring a standard across various sectors. It states that the government may fix minimum rates of wages for workers engaged in scheduled employment if more than 1,000 employees are employed in their industry in the whole state; however, there are exemptions for certain types of work based on the nature of employment.Definition 2(b) Appropriate government: In India, both the Central Government and State governments have the authority to make laws about labor because it's a shared responsibility. The term "appropriate government" refers to who is in charge depending on the industry. For example, the Central Government is responsible for industries like railways, oil fields, major ports, or any business governed by central laws. For most other industries, the State Government is the authority that enforces the law. 2(e) "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, ex: manager , ceo , owner 2(i) Employee: An employee under this Act is anyone doing skilled or unskilled, manual, or clerical work where minimum wages have been set by the government. This definition is important because it sets the rules for who can benefit from the Minimum Wages Act. Not all types of workers or employment situations are covered by the Minimum Wages Act. doesn't include member of armed forces+ 2(h) Wages: Wages refer to the remuneration provided by an employer to an employee in return for the services rendered. This payment is usually determined by factors such as time. worked (hourly, daily, weekly, monthly, or yearly), the amount of items produced, or the completion of designated tasks. COMPONENTS OF MINIMUM WAGE CALCULATION + Basic Wage + Variable Dearness Allowance (VDA) + House Rent Allowance (HRA) + 2(d) Cost of living index number: The cost of living index number refers to a figure published by the appropriate government in the official gazette. It shows how much it costs to maintain a standard of living for employees. This index is used to determine the minimum wages for different types of jobs. As living costs change, the index helps make sure wages keep up with those changes. After definitions, the Act describes who is covered by its provisions, and how the minimum wage is fixed. section 3 How minimum wages are determined Section 3 of the Act lays out how minimum wages are determined. The section is divided into Part | and Part Il, with numerous sub-sections.3(1 )says that the government fixes the minimum wage rates for qualifying employees in industries that have the minimum number of employees in each Indian state, and reviews them at least every five years. 3( 2) provides more detail, and says that the government can fix: + The minimum piece rate + The minimum time rate - Aguaranteed time rate + The overtime rate 3(3) gives the government the authority to fix minimum wage rates for: - Different scheduled employments + Different classes of work in the same scheduled employment + Adults, adolescents, children, and apprentices + Different localities these minimum wages can be fixed either on an hourly basis , daily basis , monthly basis or any time period as prescribed by appropriate government 3( 4) allows for the minimum wages set by the government to be adjusted for the cost of living allowance and the cash value of in-kind payments. Finally, 3(5 )provides that the government can change minimum wages, or can appoint committees, sub- committees, or central advisory boards to revise wages or create special allowances on its behalf.procedure for fixing minimum rates of wages section 5 1. committe method appropriate government may appoint committees and sub committees for fix and revise minimum wages by notification in official gazette section 7 advisory Board (state) the appropriate government must appoint advisory boards to coordinate the works of the committees and subcommittees and also to advise the appropriate government in the matters of fixing and revising the minimum wage rates. composition equal number of employees and equal number of employers independent person not exceeding 1/3 Central Advisory Board Section 8 The Central Government shall establish CAB and appoint its members. The members shall consist of an equal number of representatives of both the employers and the employees, along with independent members nominated by the Central Government. The Chairman of CAB shall be an independent member. The scope of work of the CAB is to ensure coordination with the Advisory Board and other matters under the Act. Mode of payment of wages under Minimum Wages Act, 1948 mode of payment section 11 All the wages shall be paid in cash only, as provided under Section 11 of the Act. However, where it has been a practice to pay the wages in kind, either wholly or partly, authorisationfrom the appropriate government is necessary. This includes concessions on essential commodities as required. Section 12 payment of minimum rate of wages Act provides the manner in which the employees have to make the payment of the minimum wages. The provision provides that the employer shall pay the minimum rates of wages to every employee working under him within the prescribed time period. Section 13 Fixing hours for a normal working day appropriate government may fix the working hours in the following manner: 1. Fix the working hours of a normal day, including one or more specified intervals. 2. Provide a day of rest in every period of seven days to all the employees or a class of employees, and adequate remuneration must be provided to the employees during the day of rest. 3. Provide payment to the employees on the day of rest, which shall not be less than the overtime rate. Section 18 Maintenance of registers and records Every employer shall: * maintain such registers and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them and such other particulars and in such form as may be prescribed. + keep exhibited, in such manner as may be prescribed, inthe factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of out- workers, in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars. The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent. Such registers and records may be perused by the inspector appointed by the appropriate government under Section 19 of the Act. The inspector may: 1. In order to examine the register, a record of wages, etc., the inspectors may enter the premises or places within the local limits of their authority where the employees are employed to work and for which minimum rates of pay have been determined under the Act. 2. Examine any person whom the inspector may have reasons to believe is an employee. 3. Require any contractor to provide information relating to the employees. 4. Seize or make copies of the wage registers, etc., which he may have reasons to believe were committed by the employer. 5. The appropriate government may provide any otherpowers or duties under the Act. Every inspector under the Act shall be deemed to be a public servant as prescribed under the Indian Penal Code, 1860. Claims section 20 The appropriate government may, by notification to the Official Gazette, appoint any Commissioner for Workmen's Compensation or any officer of the Central Government exercising functions as a Labour Commissioner for any region, or any officer of the State not below the rank of Labour Commissioner, or any other officer with experience as a judge of a Civil Court or as stipendiary Judicial Magistrate to be the Authority to hear and decide for any specified area all claims arising out of payment of less than the minimum rates of wages or in respect of wages not paid within the prescribed time limit. A Block Development Officer, Tahsildar, Additional Tahsildar, or Naib Tahsildar can also be appointed as an Authority by the State Government by notification in the Official Gazette. of the Act is made to the Authority, both the employers and the employees shall be granted an equal opportunity of being heard. For the procedure under an application under Section 20 The following is the procedure to be followed before the Authority under the Act in cases relating to non-payment or payment of less than minimum wages fixed under the Act, as prescribed under Section 20: + Both the employers and the employees shall be granted an equal opportunity to present their case. + The Authority shall direct the refund of such amount ofwages as has not been paid by the employer to the worker or has delayed in paying the wages, along with compensation to the extent of damages suffered by the worker. + However, if the employer proves that the delay in payment of wages was due to a bona fide error, the Authority shall not direct any payment of compensation. An example of a bona fide error could be that the person authorised to make the payment of wages did not pay such wages even after due diligence of the employer. section 22 Penalties If an employer fails to follow the provisions of the Minimum Wages Act, it is considered non-compliance. Employers who violate the Act, such as underpaying workers or not adhering to working hour limits, face penalties. The punishment can include imprisonment up to six months or a fine of up to Rs. 500/- or both. Employees have the right to file claims against employers for unpaid wages or for not following the law. Workers can also seek compensation under the Workmen's Compensation framework if they are injured during their employment. Non-compliant employers are subject to legal action, fines, and penalties under the Act to ensure fair labor practices. conclusion The Minimum Wages Act, 1948, is a pivotal piece of legislation under the labour laws of India. It provides a guarantee of minimum remuneration for the work done by the employee. Both the Central Government and the StateGovernments are appropriate governments under the Act, as labour law is a subject under the Concurrent List. Accordingly, both governments can fix and revise minimum wages according to the requirements of the employees falling there under. This ensures that not only the economic interests but also the social interests of the labourers are protected.