Procedure for Fixation and Revision of Minimum Wages
The Minimum Wages Act, 1948 empowers the appropriate government (Central or State) to fix, revise, and review minimum wage rates to ensure fair compensation for workers in various scheduled employments.
Fixation of Minimum Wages
Under Section 3 of the Act, the government shall fix:
- Minimum time rate
- Minimum piece rate
- Guaranteed time rate
- Overtime rate
Scheduled Employments
The government prepares a list of industries and jobs where minimum wages must be fixed. These are known as scheduled employments.
Revision of Minimum Wages
As per Section 3(1)(b), the government must revise the wages at intervals not exceeding five years.
Methods for Fixation and Revision (Section 5)
- Committee Method: Committees/sub-committees are appointed to advise the government.
- Notification Method: Draft proposals are published in the Official Gazette inviting objections and suggestions.
After considering committee advice or public responses, the government notifies the final wage rates.
Exemptions and Exceptions
The Act provides flexibility under special conditions through Section 26.
- Section 26(1): The appropriate government may exempt any scheduled employment if:
- The employment is carried on by a charitable institution.
- Only a small number of employees are engaged (below notified limit).
- Section 26(2): Special exemptions can be granted to a class of employees or establishment with specific justification.
- Apprentices: Genuine apprentices under training schemes are typically exempted.
- Disabled Workers: Exemption may be allowed based on reduced capacity, subject to approval.
Conclusion
The Minimum Wages Act ensures that workers receive at least a basic level of income. The procedure for fixing and revising wages balances fairness, transparency, and administrative flexibility through exemptions where genuinely required.
“Fair wages promote not just economic justice but social dignity for all workers.”
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