MINIMUM WAGES ACT,1948

MINIMUM WAGES ACT,1948
An act to provide for fixing minimum rate of wages in certain employments.
Where it is expedient to provide for fixing minimum rates of wages in certain employments:
It is hereby enacted as follows:
“The justification for statutory fixation of minimum wages is obvious. Such provisions which
exists in more advanced countries are even more necessary in India, where worker’s
organisations are yet poorly developed and worker’s bargaining power is consequently poor.”
(Gazette of India).
2. BASIC CONCEPTS
In this Act unless there is anything repugnant in the subject or context—
(a) “Adolescent” means a person who has completed his fourteenth year of age but has not
completed his eighteenth year;
(aa) “Adult” means a person who has completed his eighteenth year of age;
(b) “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;
(bb) “Child” means a person who has not completed his fourteenth year of age;
(c) “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 employments specified
in such notification;
(d) “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;
(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 and includes except in sub-section (3) of section 26 –
(i) In a factory where there is carried on any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act, any person named under
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clause (f) of sub-section (1) of section 7 of the Factories Act 1948 (63 of 1948) as manager
of the factory;
(ii) In any scheduled employment under the control of any government in India in respect
of which minimum rates of wages have been fixed under this Act, the person or
Authority appointed by such Government for the supervision and control of employees
or where no person or authority is so appointed, the head of the department;
(iii) In any scheduled employment under any local authority in respect of which minimum
rates of wages have been fixed under this Act, the person appointed by such authority
for the supervision and control of employees or where no person is so appointed, the
chief executive officer of the local Authority;
(iv) In any other case where there is carried on any scheduled employment in respect of
which minimum rates of wages have been fixed under this Act, any person responsible
to the owner for the supervision and control of the employees or for the payment of
wages;
(f) “Prescribed” means prescribed by rules made under this Act;
(g) “Schedule employment” means an employment specified in the Schedule or any process
or branch of work forming part of such employment;
(h) “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 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;
(i) “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
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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.
3. Fixing of minimum rates of wages—
(1) The appropriate government shall in the manner hereinafter provided -
(a) fix the minimum rates of wages payable to employees employed in an employment
specified in Part I or Part II of the Schedule and in an employment added to either Part
by notification under section 27 :
Provided that the appropriate government may in respect of employees employed
in an employment specified in Part II of the Schedule instead of fixing minimum
rates of wages under this clause for the whole State fix such rates for a part of the State
or for any specified class or classes of such employment in the whole State or part
thereof;
(b) review at such intervals as it may think fit such intervals not exceeding five years the
minimum rates of wages so fixed and revise the minimum rates if necessary :
Provided that where for any reason the appropriate government has not reviewed the
minimum rates of wages fixed by it in respect of any scheduled employment within
any interval of five years nothing contained in this clause shall be deemed to prevent
it from reviewing the minimum rates after the expiry of the said period of five years
and revising them if necessary and until they are so revised the minimum rates in
force immediately before the expiry of the said period of five years shall continue in
force.
(1A)Notwithstanding anything contained in sub-section (1) the appropriate government may
refrain from fixing minimum rates of wages in respect of any scheduled employment in
which there are in the whole State less than one thousand employees engaged in such
employment but if at any time the appropriate government comes to a finding after such
inquiry as it may make or cause to be made in this behalf that the number of employees in
any scheduled employment in respect of which it has refrained from fixing minimum
rates of wages has risen to one thousand or more it shall fix minimum rates of wages
payable to employees in such employment as soon as may be after such finding.
(2) The appropriate government may fix
(a) A minimum rate of wages for time work (hereinafter referred to as “a minimum time
rate”);
(b) A minimum rates of wages for piece work (hereinafter referred to as “a minimum
piece rate”);
(c) A minimum rate of remuneration to apply in the case of employees employed on
piece work for the purpose of securing to such employees a minimum rate of wages
on a time work basis (hereinafter referred to as “a guaranteed time rate”);
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(d) A minimum rate (whether a time rate or a piece rate) to apply in substitution for the
minimum rate which would otherwise be applicable in respect of overtime work done
by employees (hereinafter referred to as “overtime rate”).
(2A)Where in respect of an industrial dispute relating to the rates of wages payable to any of
the employees employed in a scheduled employment any proceeding is pending before a
Tribunal or National Tribunal under the Industrial Disputes Act 1947 (14 of 1947) or before
any like authority under any other law for the time being in force or an award made by
any Tribunal National Tribunal or such authority is in operation and a notification fixing
or revising the minimum rates of wages in respect of the scheduled employment is issued
during the pendency of such proceeding or the operation of the award then
notwithstanding anything contained in this Act the minimum rates of wages so fixed or
so revised shall not apply to those employees during the period in which the proceeding
is pending and the award made therein is in operation or as the case may be where the
notification is issued during the period of operation of an award during that period; and
where such proceeding or award relates to the rates of wages payable to all the employees
in the scheduled employment no minimum rates of wages shall be fixed or revised in
respect of that employment during the said period.
(3) In fixing or revising minimum rates of wages under this section—
(a) Different minimum rates of wages may be fixed for—
(i) Different scheduled employments;
(ii) Different classes of work in the same scheduled employment;
(iii) Adults, adolescents, children and apprentices;
(iv) different localities;
(b) minimum rates of wages may be fixed by any one or more of the following wage
periods; namely :
(i) By the hour
(ii) By the day
(iii) By the month, or
(iv) By such other larger wage-period as may be prescribed; and, where such rates
are fixed by the day or by the month the manner of calculating wages for a
month, or for a day, as the case may be may be, indicated :
Provided that where any wage-periods have been fixed under section 4 of the Payment of
Wages Act, 1936 (4 of 1936) minimum wages shall be fixed in accordance therewith.
4. Minimum rate of wages
(1) Any minimum rate of wages fixed or revised by the appropriate government in respect of
scheduled employments under section 3 may consist of –
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(i) 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 applicable to such
workers (hereinafter referred to as the “cost of living allowance”); or
(ii) a basic rate of wages with or without the cost of living allowance, and the cash value
of the concessions in respect of supplies of essential commodities at concession rates,
where so authorised; or
(iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the
cash value of the concessions, if any.
(2) 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 at
such intervals and in accordance with such directions as may be specified or given by the
appropriate government.
5. Procedure for fixing and revising minimum wages
(1) In fixing minimum rates of wages in respect of any scheduled employment for the first
time under this Act or in revising minimum rates of wages so fixed the appropriate
government shall either—
(a) appoint as many committees and sub-committees as it considers necessary to hold
enquiries and advise it in respect of such fixation or revision as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for the information of
persons likely to be affected thereby and specify a date not less than two months from
the date of the notification on which the proposals will be taken into consideration.
(2) After considering the advice of the committee or committee appointed under clause (a) of
sub-section (1) or as the case may be, all representations received by it before the date
specified in the notification under clause (b) of that sub-section, the appropriate government
shall by notification in the Official Gazette, fix or as the case may be revise the minimum
rates of wages in respect of each scheduled employment and unless such notification
otherwise provides it shall come into force on the expiry of three months from the date of
its issue :
Provided that where the appropriate government proposes to revise the minimum rates of
wages by the mode specified in clause (b) of sub-section (1) the appropriate government shall
consult the Advisory Board also.
6. Advisory committees and sub-committees - Repealed by the Minimum Wages
(Amendment) Act, 1957.
7. Advisory Board
For the purpose of co-ordinating work of committees and sub-committees appointed under
section 5 and advising the appropriate government generally in the matter of fixing and revising
minimum rates of wages, the Appropriate Government shall appoint an Advisory Board.
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8. Central Advisory Board—
(1) For the purpose of advising the Central and State Governments in the matters of the fixation
and revision of minimum rates of wages and other matters under this Act, and for coordinating
the work of the Advisory Boards the Central Government shall appoint a Central
Advisory Board.
(2) The Central Advisory Board shall consist of persons to be nominated by the Central
Government representing employers and employees in the scheduled employments, who
shall be equal in number, and independent persons not exceeding one-third of its total
number of members; one of such independent persons shall be appointed the Chairman
of the Board by the Central Government.
9. Composition of committees etc.—
Each of the committees, sub-committees and the Advisory Board shall consist of persons to be
nominated by the appropriate government representing employers and employees in the
scheduled employments, who shall be equal in number, and independent persons not exceeding
one-third of its total number of members; one of such independent persons shall be appointed
the Chairman by the Appropriate Government.
10. Correction of errors —
(1) The appropriate government may at any time by notification in the Official Gazette
correct clerical or arithmetical mistakes in any order fixing or revising minimum rates
of wages under this Act, or errors arising therein from any accidental slip or omission.
(2) Every such notification shall as soon as may be after it is issued be placed before the
Advisory Board for information.
11. Wages in kind—
(1) Minimum wages payable under this Act shall be paid in cash.
(2) Where it has been the custom to pay wages wholly or partly in kind, the Appropriate
Government being of the opinion that it is necessary in the circumstances of the case
may by notification in the Official Gazette authorise the payment of minimum wages
either wholly or partly in kind.
(3) If appropriate government is of the opinion that provision should be made for the
supply of essential commodities at concession rates the appropriate government may
by notification in the Official Gazette authorise the provision of such supplies at
concessional rates.
(4) The cash value of wages in kind and of concessions in respect of supplies of essential
commodities at concessional rates authorised under sub-sections (2) and (3) shall be
estimated in the prescribed manner.
12. Payment of minimum rate of wages—
(1) Where in respect of any scheduled employment a notification under section 5 is in
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force, the employer shall pay to every employee engaged in a scheduled employment
under him, wages at a rate not less than the minimum rate of wages fixed by such
notification for that class of employees in that employment without any deductions
except as may be authorised within such time and subject to such conditions as may
be prescribed.
(2) Nothing contained in this section shall affect the provisions of the Payment of Wages
Act, 1936 (4 of 1936).
13. Fixing hours for normal working day etc—
(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) The provisions of sub-section (1) shall in relation to the following classes of employees
apply only to such extent and subject to such conditions as may be prescribed :-
(a) Employees engaged on urgent work or in any emergency which could not have been
foreseen or prevented;
(b) Employees engaged in work in the nature of preparatory or complementary work
which must necessarily be carried on outside the limits laid down for the general
working in the employment concerned;
(c) Employees whose employment is essentially intermittent;
(d) Employees engaged in any work which for technical reasons has to be completed
before the duty is over;
(e) Employees engaged in a work which could not be carried on except at times dependent
on the irregular action of natural forces.
(3) For the purposes of clause (c) of sub-section (2) employment of an employee is
essentially intermittent when it is declared to be so by the appropriate government on
the ground that the daily hours of duty of the employee or if there be no daily hours of
duty as such for the employee the hours of duty normally include periods of inaction
during which the employee may be on duty but is not called upon to display either
physical activity or sustained attention.
14. Overtime—
(1) Where an employee, whose minimum rate of wages is fixed under this Act, by the
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hour by the day or by such a longer wage-period as may be prescribed, works on any
day in excess of the number of hours constituting a normal working day, the employer
shall pay him for every hour or for part of an hour so worked in excess, at the overtime
rate fixed under this Act or under any law of the appropriate government for the time
being in force, whichever is higher.
(2) Nothing in this Act shall prejudice the operation of the provisions of section 59 of the
Factories Act, 1948 (63 of 1948) in any case where those provisions are applicable.
15. Wages of worker who works for less than normal working day—
If an employee whose minimum rate of wages has been fixed under this Act by the day
works on any day on which he was employed for a period less than the requisite number
of hours constituting a normal working day he shall save as otherwise hereinafter provided
be entitled to receive wages in respect of work done by him on that day as if he had
worked for a full normal working day :
Provided however that he shall not be entitled to receive wages for a full normal working
day—
(i) In any case where his failure to work is caused by his unwillingness to work and not
by omission of the employer to provide him with work and
(ii) In such other cases and circumstances as may be prescribed.
16. Wages for two or more classes of work—
Where an employee does two or more classes of work to each of which a different minimum
rate of wages is applicable, the employer shall pay to such 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.
17. Minimum time rate wages for piece work—
Where an employee is employed on piece work for which minimum time rate and not a
minimum piece rate has been fixed under this Act, the employer shall pay to such employee
wages at not less than the minimum time rate.
18. Maintenance of registers and records—
(1) 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.
(2) Every employer shall keep exhibited notices 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.
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(3) 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 prescribed the manner
in which entries shall be made and authenticated in such wage books or wage slips by
the employer or his agent.
19. Inspectors—
(1) The appropriate government may, by notification in the Official Gazette, appoint such
persons as it thinks fit to be Inspectors for the purposes of this Act, and define the
local limits within which they shall exercise their functions.
(2) Subject to any rules made in this behalf an Inspector may within the local limits for
which he is appointed—
(a) enter at all reasonable hours with such assistants (if any) being persons in the
service of the government or any local or other public authority as he thinks fit,
any premises or place where employees are employed or work is given out to
out-workers in any scheduled employment in respect of which minimum rates
of wages have been fixed under this Act, for the purpose of examining any
register, record of wages or notices required to be kept or exhibited by or under
this Act or rules made thereunder, and require the production thereof for
inspection;
(b) examine any person whom he finds in any such premises or place and who, he
has reasonable cause to believe, is an employee employed therein or an employee
to whom work is given out therein;
(c) require any person giving out-work and any out-workers, to give any
information, which is in his power to give, with respect to the names and
addresses of the persons to for and from whom the work is given out or received,
and with respect to the payments to be made for the work;
(d) seize or take copies of such register, record of wages or notices or portions thereof
as he may consider relevant in respect of an offence under this Act which he has
reason to believe has been committed by an employer; and
(e) exercise such other powers as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant within the meaning of the
Indian Penal Code, (45 of 1860).
(4) Any person required to produce any document or thing or to give any information by
an Inspector under sub-section (2) shall be deemed to be legally bound to do so within
the meaning of section 175 and section 176 of the Indian Penal Code, (45 of 1860).
20. Claim—
(1) The appropriate government may by notification in the Official Gazette appoint any
Commissioner for Workmen’s Compensation or any officer of the Central Government
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exercising functions as a Labour Commissioner for any region or any officer of the
State Government not below the rank of Labour Commissioner or any other officer
with experience as a judge for a civil court or as a Stipendiary 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 the payment of remuneration
for days of rest or for work done on such days under clause (b) or clause (c) of subsection
(1) of section 13 or of wages at the overtime rate under section 14 to employees
employed or paid in that area.
(2) Where an employee has any claim of the nature referred to in sub-section (1) the
employee himself or any legal practitioner or any official of a registered trade union
authorised in writing to act on his behalf or any Inspector or any person acting with
the permission of the authority appointed under sub-section (1) may apply to such
authority for a direction under sub-section (3) :
Provided that every such application shall be presented within six months from the
date on which the minimum wages or other amount became payable :
Provided Further that any application may be admitted after the said period of six
months when the applicant satisfies the authority that he had sufficient cause for not
making the application within such period.
(3) When any application under sub-section (2) is entertained the authority shall hear the
applicant and the employer or give them an opportunity of being heard, and after
such further inquiry, if any, as it may consider necessary may without prejudice to
any other penalty to which the employer may be liable under this Act direct —
(i) in the case of a claim arising out of payment of less than the minimum rates of
wages, the payment to the employee of the amount by which the minimum
wages payable to him exceed the amount actually paid, together with the
payment of such compensation as the authority may think fit, not exceeding ten
times the amount of such excess;
(ii) in any other case, the payment of the amount due to the employee, together
with the payment of such compensation as the authority may think fit, not
exceeding ten rupees; and the authority may direct payment of such
compensation in cases where the excess or the amount due is paid by the
employer to the employee before the disposal of the application.
(4) If the authority hearing any application under this section is satisfied that it was either
malicious or vexatious it may direct that a penalty not exceeding fifty rupees be paid
to be employer by the person presenting the application.
(5) Any amount directed to be paid under this section may be recovered—
(a) if the authority is a Magistrate by the authority as if it were a fine imposed by
the authority as a Magistrate or
(b) if the authority is not a Magistrate by any Magistrate to whom the authority
makes application in this behalf as if it were a fine imposed by such Magistrate.
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(6) Every direction of the authority under this section shall be final.
(7) Every authority appointed under sub-section (1) shall have all the powers of a civil
court under the Code of Civil Procedure, 1908 (5 of 1908) for the purpose of taking
evidence and of enforcing the attendance of witnesses and compelling the production
of documents and every such authority shall be deemed to be a civil court for all the
purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5
of 1898).