Sharp Institute Of Individual & Organizational Development (SIIOD)

The Minimum Wages

Act,1948
( The Maharashtra Minimum
Wages Rules,1963)

D.R. Haibat

M.Com., LL.B.DPM & IR,DAM

Corporate Consultant and
Consulting Lawyer
NGO Member
 Sharp Institute Of Individual & Organizational Development (SIIOD)

Introduction/Object of the Act

• This Act was bas based up on the recommendations made by the

International Labour Organisation in 1928.
• The object of the Act is to provide for fixing and revising minimum
wages for certain categories of employees in certain
employments/industries specified in Part I and Part II of the
Schedule appended to the Act ,in order to prevent exploitation of
unorganised labour.
• This Act extends to whole of India
 Sharp Institute Of Individual & Organizational Development (SIIOD)

Applicability of the Act:

The Act is applicable to the casual, daily rated , temporary
and permanent employees.

Procedure for fixing and revising minimum wages :

1.The Govt. has to fix and revise minimum wages either by ,

a) Appointing committees/sub committees consisting of
representatives of the employers, employees and independent
persons.
OR
b) Formulating and publishing its proposals and taking in to
consideration the representations received in response to the
proposals.
The minimum rates of wages so fixed are required to be reviewed
and if necessary , revised by the Govt. at intervals of 5 years.
 Sharp Institute Of Individual & Organizational Development (SIIOD)

MAIN DEFINITIONS:
a) Appropriate Government
b) Competent authority.
c) Cost of living index means the index number ascertained and declared by
the competent authority ,to be paid to the employees in such
employments/industries .
d) Employer means ,any person who employs ,whether directly or through
another person ,any employee/s in any scheduled employment
e) Scheduled employment means an employment specified in the schedule
f) Wages means all remuneration including house rent allowance but does not
include:
i)any house accommodation, supply of light, water ,medical attendance or
any other amenity
iii) any contribution paid by the employer to PF/Pension Fund
iv)any travelling allowance /gratuity etc.
g) Employee means any person who is employed to do any unskilled/semi
skilled/skilled ,manual or clerical work in a scheduled employment in
respect of which minimum rates of wages have been fixed.
h) Inspectors means the Inspectors appointed under the Act.
 Sharp Institute Of Individual & Organizational Development (SIIOD)

MISCELLANEOUS PROVISIONS OF THE ACT

a) Every employer must pay the minimum wages

irrespective of the fact whether he has the capacity to
pay or not.
b) Every employer must pay the minimum wages
exceeding Rs. 3,000/- p.m. either by an A/C Payee
cheque or by transferring to the Bank Account of the
employees.
c) Attendance /Production Bonus/Incentive ,if any paid
to the employees shall not be considered as wages for
this purpose.
 Sharp Institute Of Individual & Organizational Development (SIIOD)

d) The normal working hours shall not exceed 9 hours in

a working day and 48 hours in a working week.
e) An employee working beyond 9 hours a day and /or
48 hours in a week shall be entitled for overtime
wages at double the ordinary rate of wages.
f) The appropriate Government may fix minimum rates
of wages for time work or for piece work and on per
month or per day basis also
g) The amount of minimum wages depends up on the
industry ,the Zone ( Zone I /II/III/IV ) and the category
of employees (Unskilled/Semi Skilled /Skilled/Highly
Skilled )
 Sharp Institute Of Individual & Organizational Development (SIIOD)

MISCELLANEOUS PROVISIONS OF THE ACT Contd.

a) The amount of minimum wages consists of basic rates of wages, special allowance
and HRA
b) The wage period shall not exceed one month
c) In case the no. of employees is less than 1000,the wages shall be paid on or before 7th
day of the month and in any other case on or after 10th day of the month.
d) In case the employee is terminated by the employer, his wages should be paid within
two working day.
e) No unauthorised deductions should be made from the wages such as fines, leave
without pay, for damage/loss of goods, deduction on account of house
accommodation & any other amenities provided, statutory deductions
,loan/advances, income tax union subscription, co-op. society dues etc.
f) Weekly Off :The employee shall be allowed a day of rest every week after working for
6 days.
g) Normal Working Hours: For Adults (9 Hours) ,For Adolescent (7 Hours) For Child (4 ½
Hours)
h) Overtime Wages: For working beyond 9 hours a day and 48 hours in any week,
overtime will be paid at double the ordinary rates of wages.
 Sharp Institute Of Individual & Organizational Development (SIIOD)

PROCEDURE TO BE FOLLOWED FOR MAKING A

CLAIM UNDER THE ACT:
• The procedure for making a claim is as under:
• Make an application to the Authority under the Act.
• The application can be made by himself or any legal
practitioner or any official of a registered trade union.
• The application is to be made within six months from the date
on which the amount became due. A single application can be
made on behalf of any number of employees.
• In appropriate cases, the Authority can , over and above
directing the payment of the difference between minimum
wages payable and wages actually paid award compensation
up to 10 times of the amount of the difference. The decision
of the Authority shall be final.
 Sharp Institute Of Individual & Organizational Development (SIIOD)

MAIN RECORDS TOBE MAINTAINED UNDER THE ACT:

1. Form I :Abstract of the Act /Rules

Form II: Muster Roll cum Wage Register showing gross
wages, deductions there from net wages etc,
2. Attendance Cards
3. Salary/Wages Slips
4. inspection book
 Sharp Institute Of Individual & Organizational Development (SIIOD)

OFFENCES UNDER THE ACT:

If any employer:

a) Pays to any employee less than minimum wages

b) Contravenes any rule or order made by the
appropriate Govt. etc.,

he will be punished with imprisonment up to 5 years

or with fine up to Rs. 10,000/- or with both.

This offence shall be cognisable and non bailable.

Sharp Institute Of Individual & Organizational Development (SIIOD)