Page 276 - DMGT516_LABOUR_LEGISLATIONS

Unit 11: Minimum Wages Act, 1948

‘Wages’ do not include any contribution paid by employer to any pension fund or provident Notes
fund under any scheme of social insurance, or
1. any travelling allowance or value of any travelling concession

2. any gratuity payable on discharge, or
3. any sum paid to the person employed to defray special expenses entailed by him by the
nature of his employment.

11.4 Fixation and Revision of Minimum Wages

The appropriate government may fix the minimum rates of wages payable to the employees of
scheduled employment, either for the whole State or a part of the State or for any specified class
or classes of such employment. Minimum rates of wages may be fixed, both for time-rated and
piece-rated workers; and also for over-time work. The minimum wages, so fixed, may be
reviewed at such intervals as the Government may think fit; such intervals not exceeding five
years. Until the rates are so revised, the minimum rate in force immediately before the expiry of
the said period of five years shall continue in force.
The minimum rates of wages may be fixed by the hour, by the day, by the week, by the month,
or by any larger wage period as may be prescribed. Where such rates are fixed by the month or
the day, the manner of calculating wages for a month, or for a day, as the case may be, may be
indicated.
In fixing or revising minimum rates of wages, different rates may be fixed for (i) different
scheduled employments; (ii) different classes of work in the same scheduled employment;
(iii) adults, adolescents, children and apprentices; (iv) and different localities. Different rates of
minimum wages may also be fixed by anyone or more of the following wage periods; by the
hour, by the day, by the week, by the month or by a larger wage period as may be prescribed.
The appropriate government may refrain from fixing minimum rates of wages in respect of any
scheduled employment, in which there are in the whole state, less than one thousand employees
in such employment. But if, at any time, the appropriate Government comes to find after an
enquiry that the number of employees in any individual employment has risen to one thousand
or more, it shall fix minimum rates of wages payable to employees in such employment as soon
as after such finding. (Section 3).

11.5 Minimum Rates of Wages

Minimum rates of wages fixed and revised under this Act may consist of:

i) a basic rate of wages and a special allowance at a rate to be adjusted to variation in the cost
of living index applicable to such workers at such intervals and in such manner as the
Government may direct; or
ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the
concession, in respect of supplies of essential commodities at concession rates where so
authorised; or
iii) An all-inclusive rate, allowing for the basic rate, the cost of living allowance, the cash
value of the concession, if any.
The cost of living allowance and cash value of the concession shall be computed by a competent
authority at such intervals and according to such directions, as may be given by the appropriate
Government. (Section 4).

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