MINIMUM WAGES ACT , 1948

June 7, 2023

THIS COMPOSITION HAS BEEN WRITTEN BY RAJSHREE SONI , A 1^st YEAR BA LLB STUDENT FROM MANIPAL UNIVERSITY JAIPUR.

INTRODUCTION

The Minimum Wages Act of 1948 is a crucial piece of legislation that governs the payment of minimum wages to workers in India. The Act was enacted on March 15, 1948, and has undergone several amendments since then to reflect the changing economic and social landscape of the country. In this research, we will discuss the various provisions of the Act, the amendments that have been made to it, and the impact of the Act on workers and employers in India.

The Minimum Wages Act, 1948, was enacted by the Indian Parliament on 15th March 1948. The act provides for fixing the minimum wages for employees engaged in different occupations and industries across the country. The act came into effect on 15th March 1949, and its provisions have been amended several times since then to keep up with changing times and socio-economic conditions.

OVERVIEW OF THE ACT

The Minimum Wages Act, 1948 provides for the determination and payment of minimum wages to workers in specified employments. The Act applies to all employments where workers are employed for hire or reward, either directly or through contractors. The Act specifies that minimum wages must be paid in cash to workers and that they cannot be paid in kind. The Act also provides for the appointment of authorities to enforce its provisions and for the punishment of employers who violate its provisions.

The Act defines the term “minimum wage” as the minimum amount of remuneration that an employer is required to pay to a worker for the work performed by the worker. The Act provides for the determination of minimum wages by the appropriate government, which can be the Central Government or the State Government. The appropriate government is required to fix minimum wages for different employments based on the skill level required for the job, the nature of work performed, and the location of the employment.

PROVISION OF MINIMUM WAGES ACT , 1948

The Act applies to all industries, including both organized and unorganized sectors. The Act defines a worker as any person employed in any industry to do any skilled or unskilled manual, supervisory, technical or clerical work. The Act mandates that employers pay a minimum wage to workers, which is calculated based on the nature of work, skill level, and location of the employment.

The Act specifies that the minimum wage should be revised at least once every five years, and the revision should take into account changes in the cost of living index. The Act also stipulates that the minimum wage paid to workers should not be less than the amount specified by the Central or State governments.

The Act further provides for the appointment of Inspectors to enforce its provisions. Inspectors are responsible for ensuring that employers comply with the Act’s provisions and that workers are paid the minimum wage specified under the Act. Employers who violate the Act’s provisions can be penalized with fines or imprisonment.

The act provides for the following key provisions:

Fixation of Minimum Wages: The act provides for the fixation of minimum wages for different categories of workers engaged in various industries and occupations. The minimum wages are fixed by the appropriate government, which is the central government in the case of industries and occupations under the control of the central government, and the state government in the case of industries and occupations under the control of the state government.
Time Limit for Fixation of Minimum Wages: The appropriate government is required to review and revise the minimum wages at intervals not exceeding five years. The act also provides for the constitution of committees to advise the appropriate government on matters relating to the fixation of minimum wages.
Payment of Minimum Wages: The act makes it mandatory for employers to pay the minimum wages fixed by the appropriate government to their workers. The act also provides for the payment of overtime wages to workers who work beyond the normal working hours.
Inspections: The act provides for the appointment of inspectors to ensure compliance with the provisions of the act. The inspectors have the power to enter any premises where workers are employed and to examine the records and registers maintained by the employer.

AMENDMENTS TO MINIMUM WAGES ACT , 1948

The Minimum Wages Act has undergone several amendments since its enactment in 1948. The most significant amendment was made in 1984, which introduced the concept of a variable dearness allowance (VDA). The VDA is an allowance paid to workers to compensate for changes in the cost of living index.

In 1991, the Act was amended to include agricultural workers under its purview. The amendment mandated that agricultural workers be paid a minimum wage, which should not be less than the amount specified by the Central or State governments.

In 2017, the Act was further amended to allow employers to make payments to workers electronically. The amendment aimed to ensure that workers received their wages on time and in a hassle-free manner.

IMPACT OF MINIMUM WAGES ACT , 1948

The Minimum Wages Act has had a significant impact on workers and employers in India. The Act has helped to ensure that workers are paid a minimum wage, which has improved their standard of living. The Act has also helped to reduce exploitation of workers by unscrupulous employers who used to pay them less than the minimum wage.

The Act has also helped to improve the productivity of workers. When workers are paid a fair wage, they are motivated to work harder, which benefits employers as well. The Act has also helped to reduce labour unrest and strikes, as workers are less likely to go on strike when they are paid a fair wage.

However, the Act has also faced some criticism. Critics argue that the Act does not go far enough in ensuring that workers are paid a living wage, which is enough to cover their basic needs. Critics also argue that the Act is not effectively enforced, and many workers are still paid less than the minimum wage.

CONCLUSION

The Minimum Wages Act of 1948 is a crucial piece of legislation that governs the payment of minimum wages to workers in India. The Act has undergone several amendments since its enactment, and has had a significant impact on workers and employers in the country. While the Act has helped to improve the standard of living of workers and reduce exploitation, there is still room for improvement in ensuring that workers are paid a living wage and that the Act is effectively enforced.

It is an important labour law that seeks to ensure that workers in India receive a fair and decent wage for their work. The act has had a significant impact on the lives of workers in India by improving their living standards and preventing their exploitation by unscrupulous employers. However, the implementation of the act needs to be improved to ensure that all workers are paid at least the minimum wage, and the act should be made more flexible to take into account regional variations in the cost of living.

REFERENCES

Aishwarya Says:

Law students often face problems, which they cannot share with their friends and families. We have started a column on our website Student’s Corner. In this column we are talking to several law students about the challenges that they face. Students who are interested in participating in the same, can fill this Google Form.

IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems to aishwarya@aishwaryasandeep.com

Join our Whatsapp Group for latest Job Opening

June 7, 2023