Friday, April 19, 2024
Friday, April 19, 2024
HomeContract ManagementMinimum Wages Act and its Features

Minimum Wages Act and its Features

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The Minimum Wages Act, 1948, is an Indian legislation that aims to safeguard the interests of laborers and workers who are engaged in certain employment by fixing the rates of wages. The Act empowers the appropriate government (central and state governments) to fix and revise the minimum rates of wages for different categories of employment, taking into account factors such as the skill required, the cost of living, and the prevailing rates of wages in the region.

Fixing and Revision of Wages

The central and state governments are responsible for fixing and revising the rates of wages for various scheduled employments. These employments may be classified based on the nature of work, skill levels, or other relevant factors.

Components of Wages

The Act specifies that the minimum rates of wages may consist of 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 prescribe, to accord as nearly as practicable with the variation in the cost-of-living index.

Working Hours and Overtime

The Act includes provisions related to the standard working hours, rest intervals, and overtime rates for work done beyond the normal working hours.

Payment Frequency

The Act mandates the frequency of wage payments, which should not exceed a certain period as prescribed by the appropriate government.

Maintenance of Records and Registers

Employers are required to maintain and preserve records and registers containing particulars of employees, the work performed by them, and receipts by them.


The Act empowers the government to appoint inspectors for the purpose of ensuring compliance with the provisions of the Act.

Penalties for Violations

Penalties are prescribed for employers who fail to comply with the provisions of the Act, including the payment of less than the minimum rates of wages.

Advisory Boards and Committees

The appropriate government may appoint advisory boards and committees to advise them on various matters related to fixing and revising the rates of wages.

The Minimum Wages Act, 1948, plays a crucial role in preventing exploitation of labor and ensuring that workers receive fair remuneration for their services. The Act has been amended over the years to address changing economic conditions and to enhance the effectiveness of its provisions. It’s important to refer to the latest amendments and rules for the most current information.

Also read: Laws and Regulations related to Insurance in India: An Overview

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Rajesh Pant
Rajesh Pant
My name is Rajesh Pant. I am M. Tech. (Civil Engineering) and M. B. A. (Infrastructure Management). I have gained knowledge of contract management, procurement & project management while I handled various infrastructure projects as Executive Engineer/ Procurement & Contract Management Expert in Govt. Sector. I also have exposure of handling projects financed by multi-lateral organizations like the World Bank Projects. During my MBA studies I developed interest in management concepts.
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