Fixation & Revision of Minimum Wages

Fixation & Revision of Minimum Wages – Exemptions & Exceptions

The Minimum Wages Act, 1948 empowers the appropriate government to fix, revise, and review the minimum wages payable to employees in certain scheduled employments. Here’s a detailed look into the procedure and the exceptions allowed under the Act.

Procedure for Fixation and Revision of Minimum Wages

Under Section 3 and Section 5 of the Act, the following procedure is followed:

1. Identifying Scheduled Employments: The government notifies specific employments under the Schedule.
2. Fixing Minimum Wages: For each employment, minimum rates may be fixed based on:
• Time rate
• Piece rate
• Overtime rate
• Guaranteed time rate
3. Methods of Fixation: The government may adopt either of the two methods:
• Committee Method: Committees or sub-committees are set up to hold enquiries and advise the government.
• Notification Method: Government publishes proposals in the official Gazette for public feedback.
4. Final Notification: After considering advice or representations, the government notifies the final rates in the official Gazette.

Revision: As per Section 3(1)(b), the government is mandated to review and revise the minimum wages at intervals not exceeding five years.

Exemptions and Exceptions

The Act also provides for certain exemptions and flexibility under specific conditions:

• Section 26(1): The appropriate government may exempt any scheduled employment from the application of the Act if:
• The employment is carried on in a charitable or educational institution.
• The number of employees is below a prescribed limit.
• Section 26(2): The government can also exempt specific classes of employees for special reasons.
• Apprentices: Bona fide apprentices are generally exempted from minimum wage provisions.
• Disabled Employees: In certain cases, exemptions may be allowed with government approval if the worker is unable to perform full duties.

Conclusion

The Minimum Wages Act, 1948 ensures that workers are paid fairly, while also offering flexibility to the government for justified exemptions. The procedural safeguards like committees and public notification ensure transparency and inclusiveness.

Ensuring fair wages isn’t just legal — it’s a moral duty towards our workforce.