The Minimum Wages Act 1948

Objective

An Act to provide for fixing minimum rates of wages in certain employments

The Minimum Wages Act 1948

Eligibility

Scheduled employment means an employment specified in the schedule

Employee includes an out worker or a home worker

The Minimum Wages Act 1948

Fixing of Minimum Rates of Wages

To employees employed in an employment

Review at such intervals as it may think fit, such intervals not exceeding 5 years. (This can be done within 5 years also)

The Minimum Wages Act 1948

Classifications
Minimum time rate Minimum piece rate Minimum guaranteed rate Over time rate Such fixation may be by the hours, days, month or such other period.

The Minimum Wages Act 1948

Minimum wages include

Basic wage and Dearness Allowance (based on cost of living index) A basic rate of wage with or without the cost of living allowance and the cash value of concessional supply of essential commodities All inclusive rates

Minimum Wages so notifies shall be paid by the employer

The Minimum Wages Act 1948

Procedure for fixing and Revising Minimum Wages

Committee Methods By appointing committees and Sub-Committees

Notification Method Publishing Government proposal for the information of the persons likely to be affected, giving not less than 2 months time

The Minimum Wages Act 1948

Committee
The Government shall constitute an Advisory Board Tripartite Committee Chairman Government Officer Equal representation from Workers and Employers

The Minimum Wages Act 1948

Maintenance of Registers & Records

Register of Wages Wage Slip Muster Roll Register of Fines Register of Deduction To exhibit the abstract of Act & Rules To exhibit rates of Minimum wages Name & Address of the Inspector

The Minimum Wages Act 1948

Claims
Before the Dy. Commissioner of Labour having jurisdiction It may be by the worker himself, or by his authorized person or by a trade union leader or by the Inspector or by any legal practitioner Within 6 Months

The Minimum Wages Act 1948

Penalties
For paying less than the fixed rate or Contravening any rule made herein or under Section 13 Imprisonment upto 6 months or fine upto Rs.500/-

The Minimum Wages Act 1948

The Employees State Insurance Act

Benefits to Employees
Sickness Maternity and

Employment Injury

ESI Act - Constituted by Central Government

The Employees State Insurance Act

Applicability
Originally applicable for non-seasonal factories using power and employing 20 or more persons Now applicable to non-seasonal power using factories employing 10 or more persons Non-power using factories employing 20 or more persons

The Employees State Insurance Act

Scheme Extended to
Shops Hotels Cinema theatres including preview theatres Road motor transport undertakings &

Newspaper establishments
Employing 20 or more persons
The Employees State Insurance Act

Entitlement
Every employee (Including casual and temporary employees) whether employed directly or through a contractor, who is in receipt of wages upto Rs.10,000 p.m. is entitled to be insured under ESI Act

Apprentices (engaged under the Apprentices Act) are not entitled to ESI benefits Eligibility: Workers from the date of joining the service

The Employees State Insurance Act

Entitlement
Persons employed in a canteen of a club Drivers employed by the transport organization Persons engaged in distribution and sale of products Persons carrying administrative work of processing the orders and executing sales Hawkers employed for sale or products Employees of cycle stand and canteen run in cinema theatres by contractors Members of editorial and administrative staff of a printing press publishing newspaper A home worker rolling beedies at home Medical representative Persons employed in a hospital attached to and maintained by the factory Part-time doctor employed for ambulance room Book binders engaged by a contractor and sales clerk working in a factory

The Employees State Insurance Act

Act does not apply to

Factories working with the aid of power wherein less than 10 persons are employed Factories working without the aid of power wherein less than 20 persons are employed Seasonal factories engaged exclusively in any of the following activities viz., cotton ginning, cotton or jute pressing, decortications of groundnuts, the manufacture of coffee, indigo, rubber, sugar (including gur) or tea or any manufacturing process Factories engaged for a period not exceeding 7 months in a year blending, packing or repackaging of tea or coffee or in such a process as may be specified by the Central Government Mines Railway running sheds
The Employees State Insurance Act

Rate of Contribution
Employer Employee Total : : : 4.75%* 1.75%** 6.50%

* 4.75% of the wages paid/payable in respect of every wage period ** Wages less than Rs.40/day No need to pay

The Employees State Insurance Act

Contribution Periods
Two contribution periods Each of 6 months duration Two benefit periods Each of 6 months duration

The Employees State Insurance Act

Benefits
Full medical facilities for self& dependents are admissible from day one of entering insurable employment Extended Sickness Benefit (Cash) (For specified 34 long term diseases) Payable for a maximum period of 2 years on the basis of proper medical certification and authentication by the designated authority For entitlement, the worker should have been in employment for atleast 2 years. He should also have paid contribution for a minimum 156 days in the preceding 4 contribution periods or 2 years

The Employees State Insurance Act

Benefits
Enhanced Sickness Benefit (Cash) Insured persons in the productive age group for undergoing sterilization operation viz., Vasectomy / tubectomy Amount payable is equal to full wages Dependents Benefits (Cash) Widow on monthly basis for life or till her re-marriage Son/daughter till age of 18 70% of the wages (shareable among dependants in fixed ratio)

The Employees State Insurance Act

Benefits
Disablement Benefit 70% of the wages Duly certified by authorized insurance medical officer

The Employees State Insurance Act

In case of Accidents
Form 16 To be submitted to Local ESI office and Insurance Medical officer

The Employees State Insurance Act

The Employees Provident Fund

Objective

Provides for Compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death

The Employees Provident Fund

Entitlement

Every factory engaged 20 or more persons

The Employees Provident Fund

Contribution Ratio
12% of the basic wages (& DA) 8.33% to Pension Scheme 3.67% to PF Scheme

The Employees Provident Fund

Advance Partial Withdrawal

Financing of Life Insurance Policy Meeting expenses of marriage of self, children/brother/sister Post matriculation education of children Acquiring dwelling house or site Repaying housing loans Meeting expenses or sickness Overcoming temporary un-employment period Purchasing necessary auxiliary aids for handicapped members Overcoming the distress due to natural calamities 30 days from the date of submission of claim

The Employees Provident Fund

Full & Final Settlement of Claims

On resignation On retirement from service after attaining the age of 55 years On account of total and permanent incapacity of work On termination of service on a voluntary scheme or on retrenchment
30 days from the date of submission of claim

The Employees Provident Fund

Submission of Forms
Form 2 Nomination form Form 5 Addition of new employees Form 10 Deletion of employees Form 10C To obtain pension Form 11 Obtain details of previous employment Form 12A Monthly Returns Form 13 PF Transfer form Form 19 To close the PF account Form 3A To be sent along with Form 19 Form 20 In case of death Nominees to send Form 23 PF statement of Accounts to all members Form 31 Advance partial withdrawal Form 6A & 3A Annual Returns
The Employees Provident Fund

Thank You
- Bhuvana.AL