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THE MINIMUM WAGES ACT, 1948
(Act No. XI of 1948)
[15 March 1948]
An Act to provide for fixing minimum rates of wages in certain employments
WHEREAS it is expedient to provide forking minimum rates of wages in certain employments;
It is hereby enacted as follows
SECTION 01: SHORT TITLE AND EXTENT
(1) This Act may be called The Minimum Wages Act, 1948.
(2) It extends [to the whole of India] 2[except the State of Jammu and Kashmir]
SECTION 02: INTERPRETATION
In this Act, unless there is anything repugnant in the subject or context,
3[(a) "adult", "adolescent" and "child" have the meanings, respectively, assigned to them in section 2 of the Factories Act, 1948 (63 of 1948);
(b) "appropriate Government" means
(i) in relation to any scheduled employment carried on by or under the authority of the 4[Central Government or a railway administration] or in relation to a mine, oil field or major port, or any corporation established by 5[a Central Act, the Central Government; and
(ii) in relation to any other scheduled employment the 6[State Government;
(c) "competent authority" means the authority appointed by the appropriate Government by notification in its Official Gazette to ascertain from time to time the cost of living index number applicable to the employees employed in the scheduled employments specified in such notification;
(d) "cost of living index number" in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed, means the index number ascertained and declared by the competent authority by notification in Official Gazette to be the cost of living index number applicable to employees in such employment;
(e) "employer" means any person who employs, whether directly or through another person, or whether on behalf of himself or any other person, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, and includes, except in sub-section (3) of section 26
(i) in a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, any person named under clause (f) of sub- section (1) of section 7 of the Factories Act, 1948 (63 of 1948) 7[as manager of the factory;
(ii) in any scheduled employment under the control of any Government in India in respect of which minimum rates of wages have been fixed under this Act, the person or authority appointed by such Government for the supervision and control of employees or where no person or authority is so appointed, the head of the Department;
(iii) in any scheduled employment under any local authority in respect of which minimum rates of wages have been fixed under this Act, the person appointed by such authority for the supervision and control of employees or where no person is so appointed the Chief Executive Officer of the local authority;
(iv) in any other case where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, any person responsible to the owner for the supervision and control of the employees or for the payment of wages;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "scheduled employment" means an employment specified in the schedule, or any process or branch of work forming part of such employment;
(h) "wages" means all remuneration, capable of being expressed in terms of money which would if the terms of the contract of employment express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment 8[ and includes house rent allowance] but does not include
(i) the value of
(a) any house-accommodation, supply of light, water, medical attendance; or
(b) any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) any travelling allowance or the value of any travelling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge.
(j)"employee" means any person who is employed for hire or reward to do any work skilled or unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out worker to whom any articles or materials are given out by another person, to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control 9[and management of that other person; and includes for the purposes of sections 20, 21, 22, 22-A, 22-B, 22-C & 22-D any person who has been an employee and who has ceased to be so by reason of superannuation, retirement, dismissal, removal, discharge, termination of service, or otherwise howsoever;] and also includes an employee declared to be an employee by the appropriate Government; but does not include any member of the Armed Forces of the 10[Union]
SECTION 03: FIXING OF MINIMUM RATES OF WAGES
11[(1) The appropriate Government shall, in the manner hereinafter provided,
12[(a) fix the minimum rates or wages payable to employees employed in an employment specified in Part I or Part 11 of the Schedule and in an employment added to either part by notification under section 27:
13[Provided that, the State Government may, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employments in the whole of the State or any part thereof; and in the case of an employment under any local authority; the State Government may fix such rates for any specified local authority; or class of local authority];
(b) review at such intervals as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates, if necessary:
14[Provided that, where for any reason the appropriate Government has not reviewed the minimum rates of wages fixed by it in respect of any scheduled employment within any interval or five years, nothing contained in this clause shall be deemed to prevent it from reviewing the minimum rates after the expiry of the said period of five years and revising them, if necessary, and until they are so revised the minimum rates in force immediately before the expiry of the said period of five years shall continue in force.
15[(1A) Notwithstanding anything contained in sub-section (1), 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 engaged in such employment, but if at anytime, the appropriate Government comes to a finding after such inquiry as it may make or cause to be made in this behalf that the number of employees in any scheduled employment in respect of which it has refrained from fixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in such employment as soon as may be after such finding.
(2) The appropriate Government may fix
(a) a minimum rate of wages for time work (hereinafter referred to as "a minimum time rate");
(b) a minimum rate of Wages for piece work (hereinafter referred to as "a minimum piece rate");
(c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate").
(d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise be applicable in respect of overtime work done by employees (hereinafter referred to as "overtime rate").
16[2(2-A) Where in respect of an industrial dispute relating to the rate of wages payable to any of the employees employed in a scheduled employment any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 (14 of 1947), or before any like authority under any other law for the time being in force or an award made by the Tribunal, National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduled employment is issued during the pendency of such proceeding or the operation of the award; then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issued during the period of operation of any award, during that period; and where such proceeding or award relates to the rates of wages payable to all the employees, in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.]
(3) In fixing or revising rate of wages under this section
(a) different minimum rates of wages may be fixed for(i) different scheduled- employment; (ii) different classes of work in the same scheduled employment; (iii) adults, adolescents, children and apprentices; (iv) different localities;
17[(b) minimum rates of wages may be fixed by any one or more of the following wage periods, namely,
(i) by the hours,
(ii) by the day,
(iii) by the month, or
(iv) by such other larger wage period as may be prescribed and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, indicated]:
Provided that where any wage periods have been fixed under section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimum wages shall be fixed in accordance therewith.
SECTION 04: MINIMUM RATE OF WAGES
(1)Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under sec.3 may consist of:-
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance"); or
(ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions 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 and the cash value of the concessions, if any.
(2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rates shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate Government.
SECTION 05: 18[PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES
(i) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate Government shall either
(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or
(b) 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 two months from the date of the notification, on which the proposals will be taken into consideration.
(2) After considering the advice of the committee or committees, appointed under clause (a) of sub-section (1), or as the case may be all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:
Provided that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1) the appropriate Government shall consult the Advisory Board also.]
SECTION 06: [ADVISORY COMMITTEES AND SUB-COMMITTEES]
Repealed by Act 30 of 1957, s.5
SECTION 07: ADVISORY BOARD
(1) For the purpose of coordinating the work of 19[committees and sub-committees appointed under section 5] and advising the appropriate Government, generally in the matter of fixing and revising minimum rates of wages, the appropriate Government shall appoint an Advisory Board.
SECTION 08: CENTRAL ADVISORY BOARD
(1) For the purpose of advising the Central and 20[State Government] in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for coordinating the work of the Advisory Boards, the Central Government shall appoint a Central Advisory Board.
(2) The Central Advisory Board shall consist of persons to be nominated by the Central 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 of the Board by the Central Government.
SECTION 09: COMPOSITION OF COMMITTEES, ETC
Each of the committees, sub-committees 21[*****] 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 10: 22[CORRECTION OF ERRORS:
(1) The appropriate Government may, at anytime, by notification in the Official Gazette, correct clerical or arithmetical mistakes in and order fixing or revising minimum rates of wages under this Act, or errors arising therein from any accidental slip or omission.
(2) Every such notification shall, as soon as may be after it is issued, be placed before the Advisory Board for information.]
SECTION 11: WAGES IN KIND
(1) Minimum wages payable under the Act shall be paid in cash.
(2) Where it has been the custom to pay wages wholly or partly in kind, the appropriate Government being of the opinion that it is necessary in the circumstances of the case may, by notification in the Official Gazette, authorise the payment of minimum wages either wholly or partly in kind.
(3) if the appropriate Government is of the opinion that provisions should be made for the supply of essential commodities at concession rates, the appropriate Government may, by notification in the Official Gazette, authorise the provision of such supplies at concession rates.
(4) The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concession rates authorised under sub-sections (2) and (3) shall be estimated in the prescribed manner.
SECTION 12: PAYMENT OF MINIMUM RATES OF WAGES
(1) Where in respect of any scheduled employment a notification under section 5 23[XXX] is in force, the employer shall pay to every employee engaged in a scheduled employment under him, wages at a rate not less than the minimum rates of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorised within such time and subject to such conditions as may be prescribed.
(2) Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936 (IV of 1936).
SECTION 13: FIXING HOURS FOR A NORMAL WORKING DAY, ETC
24(l) In regard to any scheduled employment minimum rates of wages in respect of which have been fixed under this Act, the appropriate Government may
(a) fix the number of hours of work which shall constitute a normal working day, inclusive of one or more specified intervals;
25(aa) fix the number of hours of work which shall constitute a normal working week];
(b) provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest;
(c) provide for payment for work on a day of rest at a rate not less than the overtime rate.
25[(2) The provision of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such conditions as may be prescribed:
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