Minimum wages

CHENNAI3rd Floor, ‘Creative Enclave’,

148-150, Luz Church Road,Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821

BANGALORE Suite 920, Level 9,

Raheja Towers,26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400

COIMBATOREBB1, Park Avenue,

# 48, Race Course Road,Coimbatore - 641018.

Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

MINIMUM WAGESFILMA VARGHESE

TRADE MARK DEPARTMENT



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

OBJECTIVES

Minimum Wages Act, 1948 is a central legislation

To provide minimum statutory wages for scheduled employments

To obviate the chances of exploitation of labour through payment of very low and sweating wages

Provides provisions for maximum daily working hours, weekly rest day and overtime

Rates fixed under Minimum Wages Act prevail over the rates fixed under award/agreement



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

SCOPE AND COVERAGE

Extends to the whole of IndiaApplies to all establishments employing

one or more persons and engaged in any of the scheduled employments

The Act covers an out-worker to whom the materials are given out for manufacturing or processing at his own premises



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

ADMINISTRATION

The Act’s enforcement is administered by the Central and State Government in their respective spheres

The State shall fix the minimum rates of wages in respect of the various scheduled employments, make the rules, appoint inspectors and an Authority to decide claims relating to non-payment of minimum wages



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

COMMITTES AND ADVISORY BOARDS

To hold inquiries and advise it in respect of fixation or revision of minimum rates of wages

Advisory boards – for the purpose of co-coordinating the work of committees and sub-committees

Advising in the matter of fixing and revising minimum rates of wages

Central Advisory boards – For advising the Central and State Government in the matters of fixation and revision of minimum rates of wages and other matters, and for co-coordinating the work of Advisory boards



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

CONSITIUTION

Persons nominated by the Government, equally representing the employers and employees in the scheduled employment

1/3 members shall be independent persons one of whom shall be appointed as the Chairman



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

WAGES

Wages means all remuneration expressible in money terms and payable to an employee including house rent but excluding value of any house accommodation supply of light, water, medical attendance or any other amenity contribution to any pension or provident fund, travelling allowance, reimbursement of any special expense and gratuity.

FIXATION OF MINIMUM RATES OF WAGES The State Government is empowered to fix minimum rates of wages

for different classes of employees – skilled, unskilled, clerical, and supervisory

Review and revise the same from time to time, the interval between two revisions not exceeding five years, considering the change in price index and dearness allowance

WAGES FOR TWO OR MORE CLASSES OF WORKWhere an employee does two or more classes of work, to each of which a different rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

FIXATION OF WORKING HOURS

Fix the number of working hours constituting a normal working day inclusive of one or more intervals

Provide for a rest day with wages, in every period of 7 days and

Provide for payment for work on a rest day at a rate not less than the overtime rate



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

OBLIGATION OF EMPLOYERS

1. PAYMENT OF MINIMUM WAGES a. Not less than the minimum rates of wages fixed for that class of

employee for employment without making any deductions there form except those permitted under the Payment of Wages Act

b. The employees are entitled for minimum wages at all times and under all circumstances

c. An employer who cannot pay the minimum wage has no right to engage labour and no justification to run the industry.

d. Where an employee works on any day for a period less than the requisite number of hours constituting a normal working day, he shall still be entitled to receive wages for the full normal working day, excepti. where his failure to work is caused by his unwillingness to

work and not by the omission of the employer to provide him with work, and

ii. in such other cases and circumstances as may be prescribed. If an employee is employed on piece-work basis, the employer shall pay to him, wages at not less than the minimum time rate. The linkage of minimum wages with performance or output, if it falls short of such wages, shall be illegal.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

CONTINUED….

2. WAGES IN CASH OR KINDAs a rule, the wages payable under the Act should be paid in cash. The appropriate Government may, however, permit the payment of wages wholly or party in kind, keeping in view the prevailing custom, and also allow the supply of essential commodities at concessional rates. The cash value of wages in kind and of concession in respect of supply of essential commodities at concessional rates shall be estimated in the prescribed manner.

3. OVERTIME WAGES

a. If an employee works on any day in excess of the normal working hours, the employer shall pay to him overtime wages for every hour or for part of an hour, so worked in excess, at the rate prescribed under this Act or under any other law, whichever is higher.

b. As per Factories Act, overtime wages are to be paid at twice the normal rate of wages.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

CONTINUED….

4. RETURN, REGISTERS AND RECORDSa. The employer is required to furnish an annual return in

Form No. III by the 1st February of the succeeding year. b. The employer should maintain the prescribed registers and

records giving particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them, etc.

c. The employer shall also issue wage-books or wage-slips to the employees, if required by the Government and make authenticated entries therein.

5. PAYMENT OF UN-DISBURSED AMOUNTSIf any amount payable to an employee as wages or otherwise under this Act, remains un-disbursed on account of death of the employee or his whereabouts not being known, then the same shall be deposited by the employer with the prescribed authority.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

RIGHTS OF EMPLOYEES

a. The employees have a right to file claims arising out payment of less than minimum rates of wages, or wages for rest days, overtime, etc.

b. The application for claims should be field before the authority appointed under this Act for deciding claims, within 6 months from the date on which the wages become payable.

c. A delayed application can also be entertained provided there was a sufficient cause for the delay. The application may be presented by the employee himself, or through a legal practitioner or an official of a registered trade union, authorized by him in this behalf.

d. The application may be moved by a present or past employee. e. On receiving an application for claims, the authority shall make

necessary inquiry and after allowing an opportunity of being heard to the employer and the employee, may direct for payment of i. in the case of a claim arising out of payment of wages at less

than the minimum rates fixed, the amount by which the minimum wages payable exceed the wages actually paid, together with a compensation (maximum 10 times of such amount in excess); and

ii. in any other case, the amount due to the employee, together with a compensation (maximum Rs. 10).



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

OFFENCES AND PENALITIES

Offences PenaltiesPayment of wages at less than the minimum rates fixed or amounts due under the Act.

Imprisonment up to 6 months or fine up to Rs. 500 or both.

Contravention of any rule or order made u/s 13 in respect of normal working hours.

Imprisonment up to 6 months or fine up to Rs. 500 or both.

Contravention of any other provision of the Act or any rule or order made there under.

Fine up to Rs. 500

Where a claim made u/s 20 by an employee is found to be malicious or vexatious.

Fine up to Rs. 50 (payable to the Employer).



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

THANK YOU

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Minimum wages