For every employment that has employed more than 100 employees in a state is compulsorily required to adopt the provisions of the Minimum Wages Act 1948
Minimum Wages Act 1948
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. The Indian Constitution has defined a 'living wage' that is the level of income for a worker which will ensure a basic standard o…
Full Answer
What is current federal Min wage?
What is the Federal minimum wage? The current Federal minimum wage of $7.25 per hour is the lowest amount a non-exempt employee in any state in the the United States can legally be paid for hourly work. Special minimum wage rates, such as the "Federal waitress minimum wage" for tipped employees, may apply to certain workers.
What is the Federal Minimum Wage Act?
The proposed Raise the Wage Act would increase the federal minimum wage from $7.25 an hour to $15 an hour by 2025. Also, it would continually adjust the minimum wage to reflect the cost of living. If passed, the federal minimum wage would increase to $9.50 on June 1, $11 in June 2022, $12.50 in June 2023, $14 in June 2024 and $15 in June 2025.
What is minimum wage legislation?
They have formed a coalition called Raise Up New York to advocate for her bill, with its members including Make the Road NY, SEIU 32 BJ, ALIGN-NY among others. The legislation calls for the minimum wage, which is currently at $15 an hour, to be raised each year in accordance to a formula based on the cost of living and workforce productivity.
What is minimum wage rule?
Minimum wages have been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”. 1 This definition refers to the binding nature of minimum wages, regardless of the method of fixing them. Minimum wages can be set by statute ...
What is the definition of wages under the Minimum Wages Act 1948?
(h) "wages" means all remuneration, capable of being expressed in terms of. money, which would, if the terms of the contract of employment, express or. implied, were fulfilled, be payable to a person employed in respect of his. employment or of work done in such employment, [7] [and includes house.
What are the terms in the Minimum Wages Act?
Fixation and revision of minimum wages The Minimum Wages Act 1948 generally specifies minimum wage rates on a per day basis, and extends to the entire country and is revised within a period of not less than five years, however there is a provision to increase dearness allowance every two years.
Who can claim minimum wages?
The minimum time rate must be given to those who are employed on the piece-rate system. The system must not be a minimum piece rate but only minimum time rate. The minimum time rate is a system, where the wages are paid on the basis of the time worked. Section 17 of the Act provides for this clause.
What are the salient features of Minimum Wages Act, 1948?
The Act lays down that payment of wages be in cash. However, it empowers the appropriate Government to authorize the payment of minimum wages either wholly or partly in kind in particular cases....Features of the ActA minimum time rate of wages.A minimum piece rate.A guaranteed time rate and.An overtime rate.
What are the pros and cons of minimum wage?
Top 10 Minimum Wage Pros & Cons – Summary ListMinimum Wage ProsMinimum Wage ConsLess government support necessaryHigher labor costs for companiesHigher motivation of workersLoss of competitivenessBetter working qualityReplacement of workers with machinesBetter chances to get out of povertyHigher unemployment6 more rows
How much is Nigerian minimum wage?
Nigeria's minimum wage was set at N30,000.00 in April 2019 by the Federal Government, and it has remained the same over the years. The minimum cost of healthy living for an adult per month at the beginning of 2022 stood at N40, 980.00 in Nigeria, Picodi.com reported.
What is the minimum wage mandate and what purpose does it serve?
The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.
What are the types of wages?
5 Wage Types and How They Affect Your EmployeesMinimum Wage. Minimum wage is the most widely recognized term in the realm of employee compensation. ... Living Wage. Living wage is the lowest wage at which the wage earner and his/her family can afford the most basic costs of living. ... Prevailing Wage. ... Tipped Wage. ... Fair Wage.
Why was the Minimum Wages Act of 1948 adopted?
In India, the Minimum Wages Act, 1948 was adopted for welfare of labours in a competitive market by providing them a minimum rate of wages for their services rendered in a certain employment. Because of the following conditions in India, the need for the statutory fixation of minimum rates of wages is justifiable:
When was the minimum wage law passed?
The Minimum Wages Act of 1948 was enacted to establish minimum wage rates in certain scheduled employments. It takes effect on March 15, 1948. The National Commission on Labour has described the Act’s progression as a major milestone in the country’s labour law history. The Supreme Court explained the philosophy of the Minimum Wages Act and its importance in the context of Indian conditions in the matter of U. Unichoyi v. State of Kerala [1]:
Why was minimum wage created?
The concept of minimum wages was first developed in reference to workers’ remuneration in industries where wages were significantly lower than wages for similar types of labour in other industries. This emphasises the state’s role in ‘improving the general economic conditions of workers, which appears to be at conflict with the old laissez faire doctrine.
What is wage in economics?
Wage is monetary or non-monetary reward for the services rendered by an employee to his employer during a period of time. The concept of wage is as old as society itself. In primitive days, wages were paid in kind, i.e., mostly in grains and food but with the advent of industrialization, wages became a sensitive area of public policy.
What is the meaning of wage in collective bargaining?
Basically, wage is considered as means of providing income for employee or any economic premium paid by an employer under some contract to his workers for the services delivered by him.
Why is the bargaining power of workers so poor?
Due to inadequate labour organisation and illiteracy among workers , the bargaining power of workers is consequently poor against the bargaining power of employers,
What is the meaning of "wage" in Hansen's definition?
As Hansen implies that wages are the economic premium for the assistance in production in any industry. Wage is compensation paid by an employer to employee for work done for any establishments during a period of time. It constitutes of financial support, family allowances, relief pay and other benefits for the workers and his family members.
What is the minimum wage?
Scope and Objective of the Minimum Wages Act 1 To safeguard that the employee has a basic physical necessity, proper health, and comfort. 2 Ensure that the labor gets fair wages. 3 To ensure that the labor lives a decent life and have a respectable name in society.
What is the purpose of minimum wage?
Scope and Objective of the Minimum Wages Act. To safeguard that the employee has a basic physical necessity, proper health, and comfort. Ensure that the labor gets fair wages. To ensure that the labor lives a decent life and have a respectable name in society.
What is the minimum wage advisory board?
Advisory Board. Section 7 of the Minimum Wages Act, the Advisory Board, which proposes recommendations and changes to be brought in labor laws. The advisory board proposes a recommendation to the State and Central Government in fixing the minimum wages. According to Section 9 of the Act, it talks about the appointment of committees ...
What is wage in kind?
Wages in Kind. Section 11 says that the wages shall be paid in cash. If somewhere, the payment is done either wholly or partly and if it is a customary process, then in that the case, the government through a notification in the official gazette shall enforce the payment partly or wholly.
What was the 15th session of the Indian Labor Conference?
The 15th session of the Indian Labor Conference explained the necessary physical requirements and health maintenance of the labors.
Why did the Fair Wage Committee recommend pay fixing?
It came to bring equality and justice to the blue-collar people. Pay fixing experts were guided by the standards recommended by the Fair Wage Committee in the settlement of issues identifying with wage problems in organized industries.
What is included in the section 9 of the ACT?
The included members are: A person appointed by the Appropriate Government. Employers and employees, who belong to the scheduled employment and they shall be equal in number.
When an employee does two or more classes of work to each of which a different minimum rate of wages is applicable,?
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.
What happens when an employer is charged with an offence against the Act?
Where an employer is charged with an offence against this Act, he shall be entitled, upon complaint duly made by him, to have any other person whom he charges as the actual offender, brought before the Court at the time appointed for hearing the charge ; and if, after the commission of the offence has been proved, the employer proves to the Satisfaction of the Court -
What is the clause in section 22B?
In section 22B in clause (a) of sub-section (i), for the words and figures "unless an application in respect of the facts constituting such offence has been presented under section 20", the words and figures" unless a claim under section 20 has been preferred before the authority" shall be substituted ; and
What is the meaning of section 20 in sub-section 1?
In section 20 in sub-section (1) after the words "payment of less than the minimum rates of wages" the words, brackets and figures "or in respect of wages not paid within the time prescribed under sub-section (1) of section 12" shall be inserted Maharashtra Act No. 3 of 1963.
What is section 2 in clause z?
In section 2, in clause (z), for the words "and management of that other persons, "the words "and management of that other person; and includes for the purposes of sections 20,21, 22, 22A, 22B, 22C and 22D any person who has been an employee and who has ceased to be so by reason of superannuation, retirement, dismissal, removal, discharge, termination of his service, or otherwise howsoever;" shall be substituted - Maharashtra Act No.
Is a contractor agreement null and void?
Any contractor agreement, whether made before or after the commencement of this Act whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void insofar as it purports to reduce to minimum rate of wages fixed under this Act.
Overview
Contents
The Act provides for fixing wage rate (time, piece, guaranteed time, overtime) for any industry .
1) While fixing hours for a normal working day as per the act should make sure of the following:
• The number of hours that are to be fixed for a normal working day should have one or more intervals/breaks included.
• At least one day off from an entire week should be given to the employee for rest.
History
1920: K.G.R. Choudhary recommended setting up boards for determining minimum wages for each industry.
1928: International Labour Conference implemented system to fix wages for different trades. However, the practice was not put into legislation in India.
1943: Standing Labour Committee, a Labour Investigation Committee was appointed on the rec…
Issues
42% of all wage earners in India receive wages below the national minimum wage floor rate. The data used for these statistics includes half of casual labourers and 1/4th of those salaried. Female workers and those in rural areas are more likely to be paid below a minimum wage. Those who are illiterate or have no mid-level education are most likely to be paid below a minimum wage. For Salaried workers, if they are employed in agriculture, it is more likely that they are pai…
Conflict of MGNREGA wage rates and the Minimum Wages Act
The Mahatma Gandhi National Rural Employment Guarantee Act is an employment guarantee scheme that guarantees employment for 100 days at a wage rate of INR120 per day (as fixed in 2009). These benefits can be secured by any household regardless of whether they fall below or above national poverty line. The central government delinked MGNREGA wage rates from State specific Minimum wage rates in January 2009 when states like Uttar Pradesh, Rajasthan and Ma…
Debate
From the very inception of the idea of minimum wages, the aim of policy makers was to set up a uniform wage rate across the entire country. However, such a policy would not be connected to reality due to regional differences over consumption patterns, paying capabilities of employers, requirements of employees, etc. Hence the modified aim was to achieve floor level minimum wage for regions and then further it to a national floor minimum wage. However, not everyone s…
See also
• Indian labour law
• UK labour law
• US labor law
• German labour law
• European labour law