Minimum Wages Act, 1948

The Minimum Wages Act is enacted for the purpose of fixing minimum rates of wages in certain employments.

Purpose

In order to prevent the exploitation of labour amidst the largely prevailing unemployment in India, the Central Government enacted this Act prescribing the minimum rates of wages less than which the employers are prohibited to pay the wages for certain employments.

The Central Government fixes and revises the minimum rate of wages from time to time considering the prevailing conditions and the consumer price index. The States and Union Territories shall follow these minimum wage rates along with their respective geographical conditions, and skillset of workforce.

Applicability

The provisions of this Act is applicable to the list of employments in certain industries provided under its Schedule.

This is a Central Act that is applicable to the whole of India.

The States and the Union Territories shall have their respective Rules framed aligning with this Act.

Minimum Rate of Wages

The Minimum Rate of Wages fixed or revised by the appropriate Government for the scheduled employments may consist of:

  1. 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 (hereinafter referred to as the "cost of living allowance"); or
  2. 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 concession rates, where so authorized; or
  3. an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.

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

Maintenance of registers and records

Every employer shall:

  1. maintain such registers and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them and such other particulars and in such form as may be prescribed.
  2. keep exhibited, in such manner as may be prescribed, in the factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of out- workers, in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars.

The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent.

Form of registers and records

  1. A register of wages shall be maintained by every employer at the work-spot in Form X.
  2. Every employer shall in respect of each person employed in the establishment, complete the entries pertaining to a wage period:- in columns 1 to 15 of Form X, before the date on which the wages for such wage period fall due; and in columns 16 and 17 of the said Form, on the date when payment is made and obtain the signature or thumb impression of the employee in column 18 of the said Form on the date when payment is made.
  3. A wage slip in Form XI shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages.
  4. Every employer shall get the signature or thumb-impression of every person employed on the register of wages and wage slip.
  5. Entries in the register of wages and wages slips shall be a authenticated by the employer or any person authorized by him in this behalf.
  6. A muster roll shall be maintained by every employer at the work-sport and kept in Form V and the attendance of each person employed in the establishment shall be recorded daily in that form within 3 hours of the commencement of the work shift or relay for the day as the same may be.

Compliances

Preservation of registers

A register required to be maintained under rules 21(4), 25(2) and 26(1) and the muster roll required to be maintained under rule 26(5) shall be preserved for a period of three years after the date of last entry made therein.

References

Central Minimum Wages Notification - October 2021

The Minimum Wages Act, 1948

The Minimum Wages (Central) Rules, 1950

The Minimum Wages (Central Advisory Board) Rules, 2011

Notification dated 22 Mar 2016 - Re-constitution of MWAB

Notification dated 18 Nov 2016 - on Re-constitution of CAB

Notification dated 19 Jan 2017 - Revision of minimum rates of wages in the Central Sphere - Final

Notification dated 23 Feb 2017 - Revision of minimum rates of wages in the Central Sphere - Corrigendum

Notifications

Minimum Wages Notification - Andaman & Nicobar

29 Jul, 2022
The Andaman & Nicobar Labour Department has published the notification revising the rate of minimum wages that takes effect from 01 July 2022.
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Central revised Minimum Wages VDA

29 Jul, 2022
The Ministry of Labour and Employment has released a notification superceding its previous notification dated 31 March 2022 revising the rates of variable dearness allowance (VDA) for employees employed under various industries. The revised VDA shall be payable from 01 April 2022.

All-India Consumer Price Numbers for Industrial Workers, June 2022

30 Jun, 2022
The Ministry of Labour and Employment has released All-India Consumer Price Index(CPI) Numbers for Industrial Workers for the month of June 2022.

Tripura Minimum Wages Notification - April 2022

28 Jun, 2022
The Tripura Government has published the revised rate of minimum wages for the private security guards.

All India Consumer Price Index Numbers - May 2022

13 Jun, 2022
The Ministry of Statistics and Programme Implementation National Statistics Office has issued a Press Release for All India Consumer Price Index (CPI) Numbers on Base 2012=100 for Rural, Urban and Combined for the month of May 2022.

Revised Rate of Minimum Wages - Tamil Nadu

10 Jun, 2022
Tamil Nadu Government has notified the revised rate of minimum wages for certain employment.

Himachal Pradesh Minimum wages notification

25 May, 2022
The Labour Department of Himachal Pradesh has released the minimum wages notification that is effective from 01 April 2022.

Labour Bureau releases CPI for Industrial Workers, March, 2022

30 Apr, 2022
The Ministry of Labour & Employment has released Consumer Price Index(CPI) for Industrial Workers, March, 2022, wherein All-India CPI-IW for March, 2022 increased by 1.0 point and stood at 126.0.

Minimum Wages Notification for Tamil Nadu

27 Apr, 2022
The Labour Welfare and Skill Development Department of Tamil Nadu has issued a draft notification for revision of the minimum rates of wages for the employment in the industries of silk twisting, gold, silver articles, forestry and soap manufatoring. These rates of minimum wages will be effective after the expiry of two months from the date of publication of this notification i.e. April 27, 2022.

Meghalaya Minimum wages notification

31 Mar, 2022
Meghalaya government has released its minimum wages notification that is effective from 01 April 2022.

Central Minimum Wages Notification

31 Mar, 2022
Government of India has released Minimum Wages Notification for the Central sphere effective from 1st April 2022.

Uttarakhand Minimum Wages - 01 April 2022 to 30 Sep 2022

31 Mar, 2022
The Government of Uttarakhand has notified the Minimum Wages effective from 1st April 2022 till 30 September 2022.

Minimum Wages Notification for Assam - 2021

16 Mar, 2022
Assam Labour Department has published a notification revising the VDA for minimum wages with effect from 01 Dec 2021 for certain scheduled employees and for employees of private security that shall be effective from 01 July 2021.

Tamil Nadu Minimum Wages - 01 April 2022

16 Mar, 2022
Tamil Nadu Government has released the minimum wages dearness allowance notification that is effective from 01 April 2022.

Uttar Pradesh Minimum Wages - 01 April 2022 to 30 Sep 2022

01 Mar, 2022
Uttar Pradesh Government has notified the minimum wages effective from 1st April 2022 to 30th September 2022.

Consumer Price Index for Industrial Workers (January 2022)

28 Feb, 2022
The Ministry of Labour & Employment has released Consumer Price Index for Industrial Workers, for the month of January 2022.
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