Prasad Institute of Technology

(Affiliated to Dr. A.P.J Abdul Kalam Technical University,

Lucknow)
JAUNPUR
2023-2024

The Payment of Minimum Wages Act 1936

Submitted in the partial fulfillment of the degree requirement towards the

MASTER OF BUSINESS ADMINISTRATION (MBA)
SESSION (2022-2023)

SUBMITTED TO: SUBMITTED BY

Miss. Ankita Mishra Devansh Tiwari
Asst. Professor MBA (2nd year)
 The Payment of Minimum Wages Act 1936
The Payment of Minimum Wages Act, 1936 is an Indian legislation that aims to
safeguard the interests of laborers and workers by ensuring that they receive a
minimum wage for their work. The Act was enacted to prevent the exploitation of
labor and to fix the minimum rates of wages that must be paid to skilled and
unskilled laborers.

1. Title and Applicability:

- Title: The Act is titled "The Payment of Wages Act, 1936."

- Applicability: It applies to all employees/workers who are employed in any of
the scheduled employments specified by the appropriate government. Scheduled
employments typically include industries or occupations where labor exploitation is
a concern.

2. Fixation and Revision of Wages (Sections 3 to 6):

-Scheduled Employments: The appropriate government has the authority to
declare and fix the rates of wages for various scheduled employments.

- Components of Wages: The minimum rates of wages can include a basic rate
and a special allowance. The special allowance is adjusted at intervals specified by
the appropriate government.

3. Payment of Wages (Sections 3 and 4):

- Frequency of Payment: Wages must be paid at such intervals not exceeding one
month as may be prescribed.
- Mode of Payment: Wages shall be paid in current coin or currency notes or in
both.
4. Working Hours and Overtime (Sections 13 to 15):
- Normal Working Day: The Act empowers the appropriate government to fix the
number of hours of work that constitute a normal working day.

-Overtime: In case an employee works beyond the normal working hours, the
employer is required to pay overtime wages at a rate higher than the normal rate of
wages.

5. Deductions and Fines (Sections 7 to 12):

- Permissible Deductions: The Act specifies the permissible deductions from
wages, which may include fines, deductions for absence from duty, etc.
- Maintenance of Records: Employers are required to maintain and preserve
records and registers containing particulars of employees, work performed, and
receipts by employees.

6. Inspectors and Claims (Sections 20 to 22):

- Appointment of Inspectors: The Act provides for the appointment of inspectors
who have the authority to enter and inspect premises, examine records, and take
statements from employees.

- Claims: Procedures for filing and adjudicating upon claims arising under the
Act are specified.

7. Penalties (Sections 20 and 22):

- Penalties for Violations: Employers violating the provisions of the Act may be
subject to penalties, which can include fines and imprisonment.
8. Miscellaneous Provisions:
- Fixing Wage Periods: The appropriate government may fix the wage periods,
which shall not exceed one month.

- Rule-Making Authority: The appropriate government is empowered to make

rules for carrying out the purposes of the Act.

9. Amendments and Revisions:

- The Act is subject to amendments, and minimum wage rates are periodically
revised by the respective state and central governments.

10. Legal Implications:

- Non-compliance with the Act can lead to legal actions and penalties against
employers.