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Indian National Minimum Wages | Latest Minimum Wages Act in India

The Minimum Wages Act, 1948


The Minimum Wages Act, 1948 aims at fixing and regulating the minimum rates of wages in certain employments.


It extends to the whole of India.

Fixing of Minimum Wages

The appropriate Government shall, in the manner hereinafter provided

  • Fix the minimum rates or 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 under section 27
  • 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
  • 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 any employment

The Central and the State Government have to declare minimum wages.

Minimum Rate of Wages

Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments may consist of

  • Cost of Living Allowance: 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
  • 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
  • An all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions

The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional 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.

Indian National Minimum Wages | Latest Minimum Wages Act in India

Minimum wage is  the minimum t payment that an employer has to give to their worker  as directed by the law. According to the Indian law, precisely, Article 43, takes the accountability of the State to generate financial stability in which each individual finds employment and receives a minimum survival amount.

Scope and Applicability

The Minimum Wages Act was compulsory to certify the establishments did not underpay workers with inappropriate salaries. The Act is pertinent to all commercial bodies, workshops, places of commerce, and manufacturing categories. Impulsive productions are usually omitted, through their respective state but can add a minimum wage for the particular profession or stipulate it for a subdivision during a modification series.

PionHR coves the  necessities covered under the Act

  • The rates of minimum wages are fixed
  • The rate of wages is in accordance with the skill
  • Adaptability of practice for revising minimum wages
  • The committee consisting of the Advisory board
  • Fundamental decision by the advisory board
  • Alteration of faults
  • Timely compensation of minimum wages
  • Setting hours for a usual working day/weekends
  • Mandatory holiday/leaves fixation


  • The act of Minimum wages is defined as “the least total of salary that an organization is obligatory to wage its workers for the work accomplished during the day/month, which cannot be deducted by mutual agreement or a specific labour supplier.
  • The resolution of the minimum wages act is to guard labours besides unjustifiably less wage. They certify a just and reasonable share of the successful progress to each one, and a minimum survival amount to all who are working and in the necessity of such shield. Lowest wages can also be one component of a strategy to overwhelmed poverty and diminish discrimination, comprising those among male and female, by endorsing the right to equivalent salary for labour of identical cost.

 Prominent Structures of the Act

  • The Minimum Wages Act is compulsory for all government workers comprising all -central, state government and   private establishments.
  • The minimum wages are a total of basic allowance, house rent allowance, and the special allowance if any.
  • There are diversified modules for fixing the lowest wages comprising dissimilar programmed services, dissimilar classes of labour in the similar programmed service, grown-ups, youngsters, child, beginners, skilled, and semi-skilled.
  • There are customary benchmarks for setting the minimum wages.
  • The foodstuff obligation must be determined by the consistent calorie consumption by the people.
  • The social expenditure amount is also 25 percent of the total amount.
  • The revision of minimum wage has to be once in 5 years and the same has to be announced every half-year.

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