MINIMUM WAGES ACT -

1948

Presented By
06 - Yogesh Devare
07- Amit Jaiswal
08 - Harish Janardhanan
1
09 - Punit Jethva
10 - Gaurav Kale
 DEFINITION

The Minimum Wages Act, 1948 Is Based On

Article 43 Of The Constitution Of India Which
States That, "The State Shall Endeavor To
Secure By Suitable Legislation Or Economic
Organization Or In Any Other Way To All
Workers, Agricultural, Industrial Or Otherwise,
Work, A Living Wage (Emphasis Added)
Conditions Of Work Ensuring A Decent
Standard Of Life And Full Enjoyment Of Leisure
And Social And Cultural Opportunities" 2
Minimum Wage As "The Minimum Sum Payable To A
Worker For Work Performed Or Services Rendered,
Within A Given Period, Whether Calculated On The
Basis Of Time Or Output, Which May Not Be Reduced
Either By Individual Or Collective Agreement, Which Is
Guaranteed By Law And Which May Be Fixed In Such A
Way As To Cover The Minimum Needs Of The Worker
And His Or Her Family, In The Light Of National
Economic And Social Conditions’’. 3
 HISTORICAL BACKGROUND
A Tripartite Committee Viz., "The Committee On Fair Wage" Was
Set Up In 1948 To Provide Guidelines For Wage Structures In The
Country. The Report Of This Committee Was A Major Landmark
In The History Of Formulation Of Wage Policy In India. Its
Recommendations Set Out The Key Concepts Of The 'Living
Wage', "Minimum Wages" And "Fair Wage" Besides Setting Out
Guidelines For Wage Fixation.

4
 OBJECTIVES AND SCOPE

The Main Objective Of This Act, Is Fixing A

Minimum Rate Of Wages In Number Of Industries Where
The Labours Are Not Organized And Sweated Labours Are
Most Dominant. The Act Aims At Preventing The
Exploitation Of Workers Or Labourers In Some Industries,
For Which, The Appropriate Government Is Empowered To
Take Steps To Prescribe Minimum Rates Of Wages In Certain
Employment. The Act Extends To The Whole Of India.
5
 FEATURES OF MIN. WAGES ACT 1948

Fixing of minimum rates of wage

Fixing hours for normal working day

Overtime
Maintenance of
registers and
records

Inspections

Claims
6
 APPLICABILITY OF WAGES ACT
1948
• Agriculture
• Construction/Maintenance Of Roads And Building
Operations.
• Maintenance Of Buildings
• Construction And Maintenance Of Runways.
• Uranium Mines
• Employment In Laying Down Of Underground Electric,
Wireless, Radio, Television,
• Telephone, Telegraph And Overseas Communication
• Cables And Similar Other
• Underground Cabling, Electric Lines Water Supply
Lines And Sewerage Pipe Lines. 7
 CURRENT MINIMUM WAGES IN INDIA 2019

With Effect From November 2009, The National Floor

Level Of Minimum Wage Has Been Increased To Rs
100 Per Day From Rs 80 Per Day (Which Was In Effect
Since 2007). Recently With Effect From April 1, 2017
The National Floor Level Of Minimum Wage Has Been
Raised To Rs 176 Per Day and to Rs.178 per day from
July 2019 8
MINIMUM WAGES IN 4 STATES OF
INDIA

Total Daily Minimum Wages (In Rupees)

In Delhi
Un Skilled Semi Skilled Skilled

297 328 361

9
 MINIMUM WAGES IN 4 STATES OF
INDIA
Total Daily Minimum Wages (In Rupees)

In Assam

Un Skilled Semi Skilled Skilled

254.91 297.4 371.75 10

 MINIMUM WAGES IN 4 STATES OF
INDIA
Total Daily Minimum Wages (In Rupees)

In Punjab

Un Skilled Semi Skilled Skilled

338.05 369.05 402.55 11

 MINIMUM WAGES IN 4 STATES OF
INDIA
Total Daily Minimum Wages (In Rupees)

In Rajasthan

Un Skilled Semi Skilled Skilled

252 264 276 12

 TABLE 96: STATE-WISE AVERAGE DAILY WAGE RATES IN RURAL INDIA
(MEN - NON-AGRICULTURAL LABOURERS)
(₹)

State/Union Territory 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Andhra Pradesh 221.2 223.1 232.4 247.5 271.2 290.5

Assam 204.9 225.7 233.8 245.5 258.3 263.6
Bihar 209.8 220.3 228.6 237.2 250.9 267
Gujarat 182.8 193.5 204.3 216.1 224.1 233.7
Haryana 334.2 348.7 352.7 355.5 362.3 376.3

Himachal Pradesh 256 265.3 303.4 330.4 336.4 343.2

Jammu & Kashmir 382.1 406.7 408.8 417.3 433.9 453

Karnataka 211.5 227.1 238.5 242.4 261.1 264
Kerala 609.7 617 615.6 625.6 657.2 670.1

Madhya Pradesh 150.6 166.3 184.4 198.1 202.4 205.6

Maharashtra 205.4 206.8 215.9 226.7 229.6 239.7
Manipur - - - - - -
Meghalaya 192 198 210.3 215.3 212.5 217.5
Odisha 170.9 186.2 207.8 221.2 228.3 241
Punjab 268.9 285.8 300.5 313.1 319.2 331.9
Rajasthan 273.1 294.7 300.1 301.2 316.3 312.6
Tamil Nadu 372.8 373.9 389.6 401.7 414.3 438.2
Tripura 200 200 212.5 250 250 250
Uttar Pradesh 206.6 213.6 222.7 244.7 261.1 271.6
West Bengal 217.5 237.1 259.9 279.3 287 291
ALL INDIA 237.7 249.7 261.3 273.8 284.8 293.5
Notes: 1. Yearly Average wage rates have been calculated from Monthly Average wage rates.

Source : https://rbidocs.rbi.org.in/rdocs/Publications/
13
COMPARISON: MINIMUM WAGES IN CHINA AND INDIA

14
COST OF LIVING OF INDIA

15
Conclusion

16
 Caselet
On 29 April 2019, the Supreme Court of India (Supreme Court) in Hindustan Sanitaryware and Industries Limited and Ors v State of Haryana, Civil Appeal
Nos. 2539 of 2010 and 4454 of 2019 (Hindustan Sanitaryware) ruled on the validity of the minimum wages notification dated 21 October 2015 issued by the
Department of Labour, Government of Haryana (Notification). The ruling is significant when viewed from the standpoint of the powers of the appropriate
government under Section 4 of the Minimum Wages Act 1948 (MW Act).
The civil appeals before the Supreme Court arose in the backdrop of the Notification which inter alia provided as follows:

● Unskilled employees with 5 years of experience would be deemed to be semi-skilled `A' employees. Thereafter, after 3 years of service as semi-skilled
`A', the employees would be deemed to be in the semi-skilled `B' category.
● In relation to contract workers, the principal employer shall be personally responsible for ensuring the payment of minimum rates of wages by the
contractor.
● In relation to trainees, the minimum rates of wages shall be at the rate of 75% of the wages applicable to the relevant category. Such minimum rates of
wages shall not be less than those prescribed for an unskilled category in any case. Further, the period of training for such trainees shall not be more
than 1 year.
● There shall not be any segregation of the minimum rates of wages into components in the form of allowances by the employer.
● The aforesaid provisions were challenged before the High Court of Punjab and Haryana (High Court), which rejected the contentions of the appellants.
As regards the classification of employees based on their experience, the High Court reasoned that the same was not only permissible but also
necessary given that the workmen continued to be employed in their grades for many years, thus being vulnerable to stagnation.
● The Supreme Court held the provision in the Notification classifying the employees based on the number of years of work to be invalid, opining that
such classification was in direct contravention of the contract between the employer and the employee. The MW Act has not given any power of this
nature to the appropriate government.
● The Supreme Court has followed the letter of the law to determine the power of the appropriate government to fix minimum rates of wages. While
Section 3(3) of the MW Act expressly allows the appropriate government to fix minimum rates of wages for different classes of work (skilled, unskilled
etc.), no such provision is made for fixing the minimum rates of wages on the basis of the experience of the employee in a certain class of work.
Similarly, the Supreme Court declaring the provision relating to principal employer's responsibility in respect of contract workers valid is in view of the
term `employer' as used in the MW Act. The term `employer' refers to any person who employs one or more employees in any scheduled employment,17
`whether directly or through another person'.
 REFERENCES

⮚ http://labour.nic.in/content/
 
⮚ http://www.numbeo.com/cost-of-living/country_result.jsp?country=India
 
⮚ http://www.paycheck.in/main/salary/minimumwages
 
⮚ http://www.retireinasia.com/cost-of-living-in-india/
 
⮚ http://manmaik.blogspot.in/2011/01/important-features-of-minimum-wages-
act.html

18