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The Minimum Wages Act ,


REG NO:0805111
• The objective of this Act is to ensure a minimum
subsistence wage for workers.
• To provide for fixing minimum rates of wages in certain
• The purpose of the Act is to statutorily determine the
floor wage in industry and trade where labor
organisation are either nor existent or ineffective.
• The Act is applicable to the whole of India.
Features of the Minimum Wages Act

• MW Act lays down the principle of fixation of

1. Minimum time rate of wages
2. Minimum piece rate
3. Guaranteed time rate
4. Overtime rate
• The minimum rate of wages consists of :
1. basic rate of wages and a cost of
living allowance or
2. basic wage rate with or without
the cost of living allowance
and the cash value of the
concessions in respect of the
essential commodities
supplied at concessional
• Computed by the competent authority at certain intervals . Undertakings
controlled by the union territory and central govt, the Director of
Labor Bureau is the Competent Authority.
• Wages shall be paid in cash although it empowers the appropriate govt to
authorize the payment of minimum wages either wholly or partly in
1. Adult, adolescent & child: sec 2 (a)
2. Appropriate government sec.2(b)
3. Competent authority: sec2 (c)
4. Cost of living index number : sec 2(d)
5. Employer : sec 2 (e)
6. Scheduled employment : sec 2 (g)
7. Wages : sec 2(h)
8. Employee : sec 2( i)
Fixation of minimum rate of wages
(sec 3)

 The appropriate government to fix minimum rates of wages. The employees

employed in para 1 or B schedule either at 2 or either part of notification u/s

 To make review at such intervals not exceeding five years the minimum rates or so
fixed and revised the minimum rates.

Government can also fix minimum wages for

 time work

 Piece work at piece rate

 Piece work for the purpose of securing to such employees on a time work basis

 Overtime work done by employees for piece work or time rate workers.

Minimum Rate of

 The minimum wages consist:

 Basic rate of wages and special allowance or cost
of living allowance or

 Basic rate of wages with or without cost of living

allowance or

 All inclusive rates, cost of living allowance and

the cash value of the concessions if any.
Procedure for fixation & revision of
minimum rates of wages (sec.5)
• The appropriate govt shall
1.Appoint as many committees
and sub committees as it
considers necessary to
hold enquiries and advise it
in respect of such fixation
or revision ,or
2.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 the two

 Section 9
• 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.

• Section 11 - Wages in kind

• Section 12 - Payment of minimum rate of wages

• Section 13 - Fixing hours for normal working day


• The employer shall pay wages to every

employee engaged in scheduled
employment at a rate not less than the
minimum rate of wages
• The wages of an employed person shall be
paid to him without deductions of any
kind except as may be authorized .
• If the contract rate of wages is higher than
the minimum rates of wages, the
statutory obligation does not come into
Wages for overtime(sec14)

• When a worker works in any scheduled

employment for more than 9 hours on
any day or 48 hours in any week he
shall be entitled to wages at one and
half time the ordinary rates of wages in
the case of employment in agriculture
and at double the ordinary rate of
wages in any other scheduled
 Section 15
• 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

 Section 16
• 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.

• 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.
Maintenance of registers and Records
( sec.18)
• Every employer shall maintain registers and
records giving particulars of employees
employed by him, the work performed by
them , the wages paid to them ,the receipts
given by them .
• He shall also keep the exhibited notices in the
prescribed form containing prescribed
particulars in the prescribed manner in the
factory .
• Signatures or thumb of the impression of the
employee on wage book and wage slips shall
Inspectors and their powers (sec.19)
• The appropriate govt may, by notification in the
official Gazette, appoint inspector for the
purposes of the Act, and define the local limits
within which they shall exercise their functions.
• The powers and functions of the inspector so
appointed are almost the similar to those of
the Inspectors appointed under the Payment of
Wages Act,1936 .

Powers of inspectors

 (a)enter at all reasonable hours , any premises
or place where employees are employed in
respect of which minimum rates of wages
have been fixed under this Act, for the
purpose of examining any register, record of

 (b) examine any person whom he finds in any

such premises or place and he has reasonable
cause to believe, is an employee
(c) require any person giving out-work and any out-

workers, to give any information, which is in his

powers to give, with respect to other persons to, for
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 as he may consider relevant in

respect of an offence under this Act which has been
committed by an employer; and

(e) exercise such other powers as may be prescribed

• Every inspector shall be deemed to be a public

servant within the meaning of the Indian Penal
Claims (sec.20)
• The appropriate govt. may, by notification in the
official Gazette , appoint an authority to hear
and decide for any specified area all claims
 -arising out of payment of less than

the minimum rates of wages,

 -in respect of the payment of

remuneration for days of rest or

for work done on such days
 -in respect of wages at the overtime

 Who may be an
 Who may apply???
Authority??? v The employee
 any commissioner for
Workmen’s himself…
compensation, or v Any practitioner
 Any officer of the
central govt. v Any official of a
exercising functions registered trade
as a labor
commissioner for union authorized in
any region, or writing to act on his
 Any officer of the state
govt not below the behalf
rank of a labor v Any inspector
commissioner , or
 Any other officer with v Any person acting
experience as a with the permission
Offences and penalties (sec

Any employer who pays to any employee less than the
minimum rate of wages fixed for that employee’s class
of work or less than the amount due to him under the
provisions of the Act

– Shall be punishable with

imprisonment for a term which
may extend to 6 months or
with fine which may extend to
Rs.500 or with both.

• An employer who fails to maintain a register – a record

required to be maintained under the Act

– Punishable with a fine which may

extend to Rs. 500

Thank u…..