Need for Minimum Wages Act, 1948
The minimum wages set for laborers in India are so low that, even after deducting the costs of housing, healthcare, and education, there is barely enough money for two meals a day. There should be two main reasons why minimum wages for workers should be set:
1. Social Goals: By giving workers a minimal standard of living, the minimum wage helps to end poverty.
2. Economic Goals: The minimum wage should be set at a rate that encourages employees to work hard at their jobs, boosting the nation’s economy and raising living standards.
The active support of labor associations, trade unions, and employees is necessary for minimum wage legislation to be implemented in India due to the following reasons:
- The Indian Legislature passed the Minimum Wages Act, 1948 to address issues pertaining to paying workers the minimum wage so they could meet their basic needs and maintain a respectable standard of living.
- The act also ensures that all laborers receive a safe and sufficient living wage and that an employee makes enough money to support his family.
- The act gives the government bodies the authority to set the minimum wage.
- In order to keep up with the fluctuating costs of necessities, the Minimum Wages Act, 1948 established a mechanism for minimum wage revision.
- By establishing advisory boards to mediate disagreements between employers and employees over minimum wage payments, the act aims to better protect workers’ rights.
- The act additionally designates a Commissioner for Workmen’s Compensation or any other Central Government officer performing duties as a Labour Commissioner for any region, with prior judicial experience, to hear and determine cases pertaining to non-payment or payment of laborers less than the minimum wage.
- According to the act, employers who violate any of its rules or orders or fail to pay their employees the minimum wage will also be subject to penalties.