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Indian National Minimum Wages | Latest Minimum Wages Act in India

The Minimum Wages Act, 1948

Introduction

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

Applicability

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.