Recent Amendments and Updates about Minimum Wages Act
The Minimum Wages Act of 1948 grants the Central and State Governments the authority to establish and update minimum rates of pay for various industries. The Act also provides for the payment of Variable Dearness Allowance (VDA) to adjust the wages according to the changes in the cost of living.
Some of the recent amendments and updates to the Act and their implications are:
- The Code on Wages Act 2019 merges provisions from the Minimum Wages Act 1948 and three other labor laws. It mandates a universal minimum wage, including a floor wage for all organized and unorganized sectors.
- The Central Government adjusts Variable Dearness Allowance (VDA) on minimum wages every six months, using the Consumer Price Index for Industrial Workers. The last revision was on 01.10.2021, and updated rates are on the Chief Labour Commissioner’s website.
- The Minimum Wages (Assam Amendment) Bill 2022 aims to amend the Minimum Wages Act 1948 by decriminalizing some offenses, allowing compounding with civil penalties, and proposes increased penalties.
Minimum Wages Act, 1948
Minimum Wages Act, 1948: The minimum wages act of 1948 formulates a legal method to assess reasonable compensation, as well as address economic injustices and prevent exploitation. The Act applies to a wide range of industries and types of employment. The government is able periodically to revise or adjust minimum wage rates based on variable factors including cost of living in society and skill levels.
In this article, we will look into the applicability, provisions, objectives, features, implementation, and recent updates of the Minimum Wages Act of 1948.
Table of Content
- What is Minimum Wages Act?
- Applicability of Minimum Wages Act
- Minimum Wage Under the Minimum Wages Act 1948?
- Key Provisions of the Minimum Wages Act 1948
- Objectives of Minimum Wages Act 1948
- Features of Minimum Wages Act 1948
- Implementation of Minimum Wages Act, 1948
- Challenges in the Enforcement of Minimum Wages Act 1948
- Recent Amendments and Updates about Minimum Wages Act