MINIMUM WAGES ACT,1948

&
PAYMENT OF WAGES ACT,1936

PRESENTED BY-
VANDITA KOLI 26
SWATI MAHADIK 30
THE MINIMUM WAGES ACT,1948
(Act No. 11 of 1948)
 OBJECT
 It extends to the whole of India.


 To provide for fixing minimum rates of wages in certain

employments.
 APPLICABILITY
 The minimum wages act 1948 is applicable to various schedule of
employment which is notified by the appropriate government
from time to time.


 The act is applicable to all types of employees that is whether they

are monthly rated, part-time employees, daily rated or piece rated
employees, casual, temporary or permanent employees.
FIXATION OF MINIMUM RATES OF
WAGES
Section 3
 The appropriate government to fix minimum rates of wages. The
employees employed in para 1 or B schedule either at 2 or
either part of notification u/s 27.
 To make review at such intervals not exceeding five years the
minimum rates or so fixed and revised the minimum rates.
Government can also fix minimum wages for

 time work
 Piece work at piece rate
 Piece work for the purpose of securing to such employees on a
time work basis
 Overtime work done by employees for piece work or time rate
workers.

 MINIMUM RATE OF WAGES 
Section 4
 The minimum wages consist:

 Basic rate of wages and special allowance or cost of living

allowance or


 Basic rate of wages with or without cost of living allowance or



 All inclusive rates, cost of living allowance and the cash value of
the concessions if any.

 PROCEDURE FOR FIXING & REVISING
MINIMUM RATES OF WAGES
 According section 5 -By appointing one or more committees and
sub-committees consisting of representatives of employers and
employees and also of independent persons to hold necessary
enquiries and by taking into consideration the advice tendered
by the committee or committees, or


 By formulating and publishing its proposals and taking into

consideration the representations received in response to the
proposals.


 Advisory Board


 Central Advisory Board

 COMPOSITION OF COMMITTEES
Section 9


 Each of the committees sub-committees and the Advisory Board

shall consist of persons to be nominated by the appropriate
government representing employers and employees in the
scheduled employments who shall be equal in number and
independent persons not exceeding one-third of its total number
of members;


 one of such independent persons shall be appointed the Chairman

by the appropriate government.

 Section 11 - Wages in kind


 Section 12 - Payment of minimum rate of wages



 Section 13 - Fixing hours for normal working day




 OVERTIME
Section 14


 To be fixed by the hour, by the day or by such a longer wage-period

works on any day in excess of the number of hours constituting a
normal working day.


 Payment for every hour or for part of an hour so worked in excess

at the overtime rate double of the ordinary rate of wages.
 WAGES OF WORKER WHO WORKS FOR
LESS THAN NORMAL WORKING DAY
Section 15


 If an employee whose minimum rate of wages has been fixed under

this Act by the day works on any day on which he was employed
for a period less than the requisite number of hours constituting a
normal working day he shall save as otherwise hereinafter
provided be entitled to receive wages in respect of work done by
him on that day as if he had worked for a full normal working
day

 WAGES FOR TWO OR MORE
CLASSES OF WORK
Section 16


 Where an employee does two or more classes of work to each of

which a different minimum 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.
 MINIMUM TIME RATE WAGES FOR
PIECE WORK
 Section 17


 Where an employee is employed on piece work for which minimum

time rate and not a minimum piece rate has been fixed under this
Act the employer shall pay to such employee wages at not less
than the minimum time rate.
 MAINTENANCE OF REGISTERS
AND RECORDS
Section 18


 Register of fines
 Annual returns
 Register for overtime
 Register of wages
 Representation of registers

Section 19
Inspectors

 The appropriate government may by notification in the Official

Gazette appoint such persons as it thinks fit to be Inspectors for
the purposes of this Act and define the local limits within which
they shall exercise their functions.
 CLASSIFICATION OF EMPLOYEES
 The employees are classified as under.
(i)Highly skilled

 (ii)Skilled


 (iii)Semiskilled


 (iv)Unskilled & others.

 DIFFERENT ZONES


 Zone I

 Zone II

 Zone III
 Minimum Wages in Maharashtra
w.e.f 1st July,2009 to 31st December,2009
Sr.No. CategoriesZone1 Zone 2 Zone 3
of
workers

Basic Special Total

Allowance
Basic Special Total Basic Special Total
Wages Wages Allowan Wages Allowan
ce ce
(In Rupees per day)
1 Skilled 128.08 36.74 164.8 124.23 36.74 160.97 112.69 36.74 149.43
2
Semi 124.23 36.74 160.9 120.38 36.74 157.12 108.85 36.74 145.59
skilled 7

Unskilled 120.38 36.74 157.1 116.54 36.74 153.28 105.00 36.74 141.47
2
PAYMENT OF WAGES
ACT, 1936
OBJECTIVE OF THE ACT
 Toregulate the payment of wages of certain
classes of employed persons
APPLICABILITY
 FACTORY INDUSTRIAL ESTABLISHMENT
 TRAMWAY SERVICE OR MOTOR TRANSPORT
SERVICES ENGAGED IN CARRYING
PASSENGERS OR GOODS OR BOTH BY ROAD
FOR HIRE OR REWARD
 MINE, QUARRY OR OIL FIELD PLANTATION
 WORKSHOPS OR OTHER ESTABLISHMENTS, ETC
COVERAGE OF EMPLOYEES
 Drawing average wage upto Rs. 6500 pm
SECTIONS
TIME OF PAYMENT OF WAGES
(SEC. 5)
 The wages of every person employed be paid


 When less than 1000 persons are employed


 Shall be paid before the expiry of the 7th day
of the following month

 When more than 1000 workers, before the
expiry of the 10th day of the following month
WAGES TO BE PAID IN CURRENT COINS
OR CURRENCY NOTES
SEC. 6
 Allwages shall be paid in current coins or
currency notes or both

 Afterobtaining the authorization ,either by
cheque or by crediting the wages in
employees bank account
DEDUCTION MADE FROM WAGES
(SEC.7)
 Deductions such as, fine, deduction for
amenities and services supplied by the
employer, advances paid, over payment of
wages, loan granted for house-building or
other purposes, income tax payable, PF
contributions, cooperative societies,
premium for life insurance, contribution to
any fund constituted by employer or a trade
union, recovery of losses, ESI contributions
etc.
FINES AS PRESCRIBED BY
(SEC. 8)
 Notto imposed unless the employer is given
an opportunity to show cause
DEDUCTION FOR ABSENCE FROM
DUTIES FOR UNAUTHORISED ABSENCE
(SEC.9)
 Absence for whole or any part of the day-

 If ten or more persons absent without
reasonable cause, deduction of wages upto 8
days.
DEDUCTION FOR DAMAGE OR LOSS
SECTION 10
 For default or negligence of an employee
resulting into loss

 Show cause notice has to be given to the
employee
THANK YOU