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. month or such other period. The Minimum Wages Act 1948 . days.

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 .

giving not less than 2 months time 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.

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 .

Constituted by Central Government The Employees’ State Insurance Act .Benefits to Employees • Sickness • Maternity and • Employment Injury ESI 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.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 .10.000 p. who is in receipt of wages upto Rs.

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 .

the manufacture of coffee. sugar (including gur) or tea or any manufacturing process • Factories engaged for a period not exceeding 7 months in a year blending. indigo. cotton ginning. rubber.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. decortications of groundnuts. 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 . cotton or jute pressing..

40/day –No need to pay The Employees’ State Insurance Act .75%** 6.75%* 1.Rate of Contribution • Employer • Employee • Total : : : 4.50% – * 4.75% of the wages paid/payable in respect of every wage period – ** Wages less than Rs.

Contribution Periods • Two contribution periods – Each of 6 months duration • Two benefit periods – Each of 6 months duration The Employees’ State Insurance Act .

– 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 • 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.

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) – 8.67% to PF Scheme The Employees’ Provident Fund .33% to Pension Scheme – 3.

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 .

Bhuvana.Thank You .AL .

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