Minimum Wages in India
Wages are remuneration which the workers are entitled for the work performed by them. The Minimum Wages Act, 1948 is landmark legislation in India for regulating of wages in the country. The Act was passed to provide for fixing minimum rates of wages in certain employments. The provisions of the Act are intended to achieve the object of doing social justice to the workers employed in the scheduled employments by prescribing minimum rates of wages for them.
The Minimum Wage Act in India is being implemented by the Central and State Governments, and as such both are empowered to frame rules. There are 45 scheduled employments in the Central Sphere while in the State Sphere the number of such employments is as many as 1596. Get complete information on Minimum Wage Legislation and Minimum Wage Rates in Indian states for the year 2012 and 2013
Minimum rate of wages fixed or revised consists of the followings:
- A basic rate of wages and a special allowance i.e. cost of living allowance;
- A basic rate of wages with or without cost of living allowance and case value of concessions for supplies of essential commodities;
- An all inclusive rate, i.e. basic rate, cost of living allowance and cash value concessions.
The Government may fix the minimum rates of wages either by the hour, by the day, by the month or by such large wage-period as may be prescribed which may be revised at intervals and reviewed.
For the fixation of minimum wages, the employment must have been in Schedule originally or added to the Schedule by a notification under section 27 of the Act. The Government may fix or revise minimum wages either by committee procedure of by notification procedure. For this purpose Central Government has set up 5 Regional Committees to reduce disparities among the regions for the fixation of minimum wages. The Government appoints committee consisting of equal number of representatives of employers and employees in the scheduled employment and independent persons not exceeding one-third of total number nominated by the Government. The committee holds inquiries and advises the Government regarding fixation and revision of minimum wages. The rates recommended by the committee and accepted by Government or the rates determined by Government after consideration of all representatives should be published in the Official Gazette.
By this Act our Constitution also enjoins on the Government to endeavour to secure conditions of work ensuring a decent standard of life and full enjoyment of leisure, social and cultural opportunities.