40 4 minimum_wages_act

MINIMUS WAGESACT, 1948
The Act provides for fixing minimum rates of wages in certain employments.
1. “Wages" means all remuneration, capable of being expressed in terms of money,
be payable to a person employed 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;
2. "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 and
management of that other person; 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, Union.
3. Fixing of minimum rates of wages
(i) The appropriate government shall, -
(a) fix the minimum rates of wages payable to employees employed
in an employment specified in Part I or Part II of the Schedule and in an
employment added to either Part by notification
(b) review at such intervals as it may think fit, such intervals not
exceeding five years, the minimum rates of wages.
The appropriate government may refrain from fixing minimum rates of
wages in respect of any scheduled employment in which there are in the
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whole State less than one thousand employees engaged in such
employment.
(ii) In fixing or revising minimum rates of wages under this section, -
different minimum rates of wages may be fixed for-
 different scheduled employments;
 different classes of work in the same scheduled employment;
 adults, adolescents, children and apprentices;
 different localities;
(iii) minimum rates of wages may be fixed by any one or more of the following
wage periods, namely:
a) by the hour,
b) by the day,
c) by the month, or
d) 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, 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.
5. "Adolescent" means a person who has completed his fourteenth years of age
but has not completed his eighteenth year;
6. "Adult" means a person who has completed his eighteenth years of age;
7. Minimum rate of wages
(1) Any minimum rate of wages fixed or revised by the appropriate government
may consist of-
(a) a basic rate of wages and cost of living allowance; or
(b) 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
concessional rates, where so authorised; or
(c) an all-inclusive rate allowing for the basic rate, the cost of living allowance
and the cash value of the concessions, if any.
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8. Where in respect of any scheduled employment a notification under section 5 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 rate of wages
fixed by such notification for that class of employees in that employment without
any deductions except as may be authorized within such time and subject to
such conditions as may be prescribed.
Where an employee is employed on piecework for which minimum time rate and
not a minimum piece rate has been fixed under this Act, the employer shall pay
to such employee wages at not less than the minimum time rate.
8. Time & Conditions of Payment of wages and deductions
(i) The wage period with respect to any scheduled employment for which wages
have been fixed shall not exceed one month and the wages of a worker in such
employment shall be paid—
(a) in the case of establishments in which less than one thousand persons
are employed, before the expiry of the seventh day, and
(b) in the case of other establishments before the expiry of the tenth day,
after the last day of the wage period in respect of which the wages are payable.
(ii) Where the employment of any person is terminated by or on behalf of the
employer, the wages earned by him shall be paid before the expiry of the second
working day after the day on which his employment is terminated.
(iii) The wages of an employed person shall be paid to him without deduction
of any kind except those authorised by or under these rules.
(iv) Deductions from the wages of a person employed in a scheduled
employment shall be of one or more of the following kinds, namely :—
a) fines;
b) deductions for absence from duty;
c) deductions for damage to or loss of goods expressly entrusted to the
employed person for custody, or for loss of money for which he is
required to account, where such damage or loss is directly attributable to
his neglect or default;
d) deductions for house accommodation supplied by the employer;
e) deductions for such amenities and services supplied by the employer as
the Central Government may, by general or special order, authorise.
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Explanation.—The words ‘amenities and services’ in this clause does not
include the supply of tools and protectives required for the purposes of
employment;
f) deductions for recovery of advances or for adjustment of over payments
of wages :
Provided that such advances do not exceed an amount equal to wages for
two calendar months of the employed person and, in no case, shall the
monthly instalment of deduction exceed one-fourth of the wages earned in
that month;
g) deductions of income-tax payable by the employed person;
h) deductions required to be made by order of a court or other competent
authority;
i) deductions for subscriptions to, and for repayment of advances from any
provident fund to which the Provident Fund Act, 1925, applies or any
recognised provident fund as defined in section 58A of the Indian Income-
tax Act, 1922, or any provident fund approved in this behalf by the Central
Government during the continuance of such approval;
j) deductions for payment to co-operative societies or deductions for
recovery of loans advanced by an employer from out of a fund maintained
for the purpose by the employer and approved in this behalf by the
Central Government or to a scheme of insurance approved by the Central
Government;
k) deductions for recovery or adjustment of amounts, other than wages, paid
to the employed person in error or in excess of what is due to him;
l) deductions made with the written authorisation of the employed persons
(which may be given once generally and not necessarily every time a
deduction is made), for the purchase of securities of the Government of
India or of any State Government or for being deposited in any Post
Office Savings Bank in furtherance of any savings scheme of any such
Government;
m) deductions made with the written authorisation of the employed person
for contributions to the National Defence Fund or the Prime Minister’s
National Relief Fund or to any Defence Savings Scheme approved by the
Central Government or to such other Fund as the Central Government
may, by notification in the Official Gazette, specify in this behalf; and
n) deductions for recovery of loans granted for house building or other
purposes approved by the Central Government, and for the interest due
in respect of such loans, subject to any rules made or approved by the
Central Government regulating the extent to which such loans may be
granted and the rate of interest payable thereon.
(v) Notwithstanding anything contained in these rules, the total amount of
deductions, which may be made in any wage period, from the wages of an
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employee shall not exceed—
a) 75 per cent of such wages in cases where such deductions are wholly or
partly made for payments to Consumer Co-operative Stores run by any
Co-operative Society under clause (x) of sub-rule (2); and
b) 50 per cent of such wages in any other case:
Provided that where the total amount of deductions which have to be made
in any wage period from the wages of any employee exceeds the limit
specified in clause (i), or, as the case may be, clause (ii) of this sub-rule, the
excess shall be carried forward and recovered from the wages of succeeding
wage period or wages periods as the case may be, in such number of
instalments as may be necessary.
(vi) Any person desiring to impose a fine on an employed person or to make
a deduction for damage or loss caused by him shall explain to him personally
and also in writing the act or omission or the damage or loss, in respect of which
the fine or deduction is proposed to be imposed or made and give him an
opportunity to offer any explanation in the presence of another person. The
amount of the said fine or deduction shall also be intimated to him. The amount
of fine or deduction for damage or loss shall be subject to such limits as may be
specified in this behalf by the Central Government. All such fines imposed and
deductions made shall be recorded in the registers maintained in Forms I and II,
respectively. These registers shall be kept at the workspot and maintained upto-
date. Where no fine or deduction has been imposed or made on or from any
employee in a wage period, a ‘nil’ entry shall be made across the body of the
relevant register at the end of the wage period, indicating also in precise terms
the wage period to which the ‘NIL’ entry relates.
Every employer shall send annually a return in Form III so as to reach the
Inspector not later than the 1st February following the end of the year to which it
relates.
The amount of fine imposed shall be utilised only for such purposes beneficial to
the employees as are approved by the Central Government.
9. Number of hours of work, which shall constitute a normal working day.
 The number of hours, which shall constitute a normal working day shall
be—
 in the case of an adult, 9 hours;
 in the case of a child, 4 hours.
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 The working day of an adult worker shall be so arranged that inclusive of
the intervals for rest, if any, it shall not spread over more than twelve
hours on any day.
 The number of hours of work in the case of an adolescent shall be the
same as that of an adult or a child according as he is certified to work as
an adult or a child by a competent medical practitioner approved by the
Central Government.
 No child shall be employed or permitted to work for more than 4½ hours
on any day.
10. Extra wages for overtime
(1) When a worker works in an employment for more than nine hours on any
day or for more than forty-eight hours in any week, he shall, in respect of such
overtime work, be entitled to wages at double the “ordinary rate of wages”.
Explanation.—The expression “ordinary rate of wages” means the basic wage
plus such allowances including the cash equivalent of the advantages accruing
through the concessional sale to the person employed of food grains and other
articles as the person employed is for the time being entitled to but does not
include a bonus.
(2) A register of overtime shall be maintained by every employer in Form IV
in which entries under the columns specified therein shall be made as and when
overtime is worked in any establishment. The register shall be kept at the work
spot and maintained up-to-date. Where no overtime has been worked in any
wage period, a ‘nil’ entry shall be made across the body of the register at the end
of the wage period indicating also in precise terms the wage period to which the
‘NIL’ entry relates.
11. Register
A Register of Wages shall be maintained by every employer at the work spot in
Form X.
(i) Every employer shall, in respect of each person employed in the
establishment, complete the entries pertaining to a wage period—
(a) in columns 1 to 15 of Form X, before the date on which the wages for
such wage period fall due ;
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(b) in columns 16 and 17 of the said Form, on the date when payment is
made, and obtain the signature or thumb impression of the employee in column
18 of the said Form on the date when payment is made.
(ii) A Wage Slip in Form XI shall be issued by every employer to every
person employed by him at least a day prior to the disbursement of wages.
(iii) Every employer shall get the signature or the thumb impression of the
every person employed on the Register of wages and wage slip.
(iv) Entries in the Register of Wages and wage slip shall be authenticated by
the employer or any person authorised by him in this behalf.
(v) A muster roll shall be maintained by every employer at the work spot in
Form V and the attendance of each person employed in the establishment shall
be recorded daily in that Form within 3 hours of the commencement of the work
shift or relay for the day, as the case may be.
12. Offences by Companies
(1) If the person committing any offence under this Act is a company, every
person who at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company as
well as the company shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment provided in this Act if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to prevent
the commission of such offence.
(2) Notwithstanding anything contained in (1) above , where an offence under
this Act has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer of the company shall
also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
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