Payment Of Wages Act N Minimum Wages Act

MINIMUM WAGES ACT,1948 & PAYMENT OF WAGES ACT,1936

PRESENTED BYVANDITA 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 of workers

Zone 2

Zone 3

Basic Special Total Allowance Basic Special Total Wages Wages Allowan ce

Basic Special Total Wages Allowan ce

(In Rupees per day) 1

Skilled

128.08

36.74

164.8 124.23 36.74 2

160.97 112.69 36.74

149.43

Semi skilled

124.23

36.74

160.9 120.38 36.74 7

157.12 108.85 36.74

145.59

Unskilled 120.38

36.74

157.1 116.54 36.74 2

153.28 105.00 36.74

141.47

PAYMENT OF WAGES ACT, 1936

OBJECTIVE OF THE ACT  To

regulate 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



be paid before the expiry of the 7th day of the following month

 Shall 

 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  All

wages shall be paid in current coins or currency notes or both

  After

obtaining 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)  Not

to 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

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