Page 286 - DMGT516_LABOUR_LEGISLATIONS

Unit 11: Minimum Wages Act, 1948

capacity of industry to pay. It is bedrock minimum which must be paid to the worker for Notes
maintaining himself and his facility and for preservation of his efficiency as a workman.
In calculating it, beside food, clothing and rent, medical and education expenses should
also be considered. If any concern cannot pay such a minimum, it must be shut down.
Similar view was expressed by the Supreme Court in the case, of Crown Aluminium
Works vs. their workman in 1958 AIR 30.
Thirty-sixth Labour Conference held in May, 1987 had recommended that minimum wage fixed
under the Act should bear a relation to the concept of “Poverty Line”. In this regard the State
Governments were advised on 15th May 1990 that 15 per day shall be the National Minimum
Wage, below which the State Governments may not fix minimum rates of wages for any
employment. The National Commission of Rural Labour has also recommended that the
minimum wages should not be less that 20 per day, and this recommendation has also been
brought to the notice of the State Governments.
The statutory minimum wages, as fixed under this Act, have their own contribution to make,
particularly in a developing country like India where working class is largely illiterate and
unconscious and collective bargaining is yet to emerge as a weapon for regulating labour and
management relations. In our country inadequate wages are still an important cause of labour
disputes and consequent loss of man days and production. A legislation like the Minimum
Wages Act, which improves the level of wages, is bound to improve industrial relations, provided
it is administered and implemented effectively.
The Central Government is considering seriously to amend this Act further to widen its scope
and coverage, improve method and procedure for fixing minimum wages, reduce the time limit
for revision of minimum wages and enhance penalties for making the Act more effective. The
above mentioned three limitations of the Act should be brought to the notice of the Government
for consideration while amending the Act, to see if they could be minimised, if not removed
entirely.

Notes Recommendation on Second National Commission on Labour

The minimum wage payable to anyone in employment, in whatever occupation, should
be such as would satisfy the needs of the worker and his family (consisting in all of
3 consumption units) arrived at on the Need Based formula on the 15 Indian Labour
th
conference, supplemented by the recommendations made in the judgement of the Supreme
Court in the Raptakos Brett & Co. case.
Central Government may notify the National Floor Level Minimum Wage. Each State/
Union Territory should have the authority to fix minimum rates of wages, which shall not
be, in any event, less than the National Floor Level Minimum Wage when announced.

Task Give practical examples related to Minimum Wages Act, 1948.

11.9 Summary

The need for regulating minimum wages has been gaining increasing attention, not only
of the governments of developing and developed countries, but also of the International
Labour Organisation at Geneva (ILO), which is formulating International Labour Standards
for its member countries since its very inception after the First World War.

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