Page 168 - DMGT306_MERCANTILE_LAWS_II

Unit 9: Minimum Wages Act, 1948

Notes
Example: During the year 2005, three State Governments namely Bihar, Kerala and
Sikkim have added employments to the Schedule appended to the Act. A total to thirty-one
employments have been added to the schedule of the Act during the year under reference.

Wages [Section 2(h)]

Wages means all remunerations capable of being expressed in terms of money, which would, if
the terms of the contract of employment, express of implied, were fulfilled, be payable to a
person employed in respect of his employment or of work done in such employment and
includes house rent allowance but does not include:
(i) the value of:
(a) any house accommodation, supply of light, water medical;
(b) any other amenity or any service excluded by general or social order of the appropriate
Government;
(ii) contribution by the employer to any Pension Fund or Provides Fund or under any scheme of
social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment;
(v) any gratuity payable on discharge.

Self Assessment

Fill in the blanks:
8. The appropriate government may, by notification in the ................................ appoint
inspectors as it thinks fit to be Inspectors for the purposes of this Act.
9. Any employer who contravenes any provision of this Act or of any rule or order made
there under shall, if no other penalty is provided for such contravention by this Act be
punishable with fine which may extend to ................................
10. The appropriate government may, subject to the condition of previous publication, by
notification in the ................................ make rules for carrying out the purposes of this Act.

9.3 Fixation of Minimum Rates of Wages [Section 3(1)(A)]

Section 3 lays down that the appropriate Government shall fix the minimum rates of wages,
payable to employees in an employment specified in Part I and Part ii of the Schedule, and in an
employment added to either part by notification under Section 27. In case of the employments
specified in Part II of the Schedule, the minimum rates of wages may not be fixed for the entire
State. Parts of the State may be left out altogether. In the case of an employment specified in Part
I, the minimum rates of wages must be fixed for the entire State, no parts of the State being
omitted. The rates to be fixed need not be uniform. Different rates can be fixed for different
zones or localities: [Basti Ram v. State of, A.P. AIR 1969 A.P. 227].
Notwithstanding the provisions of Section 3(1)(a), the appropriate Government may not fix
minimum rates of wages in respect of any scheduled employment in which less than 1000
employees in the whole State are engaged. But when it comes to its knowledge after a finding

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