What is Minimum Wages Act, 1948?

The Minimum Wages Act, 1948 is an important law in India that sets minimum wages for different classes and periodically reviews them in an effort to minimize worker exploitation.

Important Clauses of the Minimum Wages Act, 1948

• Fixing and Revision of Wages: The act gives the relevant federal and state governments the authority to set the minimum pay rates and to review them on a regular basis. These rates are established by taking into account the skill levels, region, and kind of job.
• Components of Wages: The law lists the elements that make up minimum wages, such as a base pay rate and a special allowance that will be changed at regular intervals and according to the guidelines prescribed by the relevant government.
• Working Hours: In order to ensure that the minimum wages specified are in line with appropriate working hours, the act establishes the standard working hours for a typical working day.
• Overtime Compensation: The act requires that workers be paid overtime compensation at a rate that is more than the regular rate of wages in situations when they work over their regular working hours.
• Fixing Work Hours for Various Types of Workers: The act recognizes differences in employment situations and permits the differentiation of working hours for varying types of workers.
• Maintenance of Records: Employers are expected to keep and preserve records and registers that include information on their workers, the tasks they do, and the money they get.

Signifance of the Minimum Wages Act, 1948

• Prevention of Exploitation: The Act serves as a protection against the exploitation of labor by setting and amending minimum wage rates, ensuring that workers are fairly and justly compensated for their labors.
• Standardization of Pay: The Act helps to standardize pay by introducing justice and uniformity to compensation policies across various industries and regions.
• Promotion of Social Justice: By emphasizing equitable compensation, the Act complies with social justice principles and attempts to reduce economic inequality and improve the lot of the working class.

Payment of Wages Act, 1936 aims at paying workers salaries on time and sets out an acceptable method for paying wages. On the other hand, the Minimum Wages Act, 1948 aims at minimizing workers’ exploitation and sets out minimum wages for different classes of workers.