Minimum Wages Act Definition
Minimum Wages Act, in simpler words, is the act to provide for fixing minimum rates of salaries in specific jobs/professions.
The Minimum Wages Act is a vital act that every working individual must be aware of. HR managers, in particular, should be well-versed in this act.
Let’s dive in and learn everything about the Minimum Wages Act.
Here, we will discover:
Understanding the Minimum Wages Act 1948
The Central Legislature passed the Minimum Wage Act in 1948. It regulated the minimum wage to be paid for certain kinds of labour.
The Act is intent on providing equal treatment to workers in scheduled occupations by setting a baseline salary for them.
Put another way, the Act aims to stipulate minimum pay by law so that workers are not exploited.
After the Act was passed, blue-collar workers felt that they were receiving fair treatment. This law was based on the standards recommended by the Fair Wage Committee.
Objectives of the Minimum Wages Act 1948
The following are the goals of the Minimum Wages Act of 1948:
- To make it illegal to take advantage of workers at work.
- To make sure that all blue-collar workers in the organised sector get paid at least the minimum wage.
- To make sure that the Act applies to as many organised sector workers as possible.
- To allow the government to set minimum pay and then change them every five years based on how the economy is doing in the country.
- To protect the worker so that they can meet their needs and be healthy and comfortable.
Purpose of the Minimum Wages Act in India
Stopping Employee Exploitation
To prevent the exploitation of workers, the goal of the Act is to ensure workers may live at a decent and standard level.
The government has a minimum wage and adjusts it with suggestions from advisory groups every five years. In order to protect the workers, these groups’ regulations must be complied with.
Changes and Exemptions
The law has changed with the times to cater for changing needs.
The 2000 Amendment Act is one example; it raises the minimum pay floor as well as makes exemptions for certain kinds of work.
At the moment, Andhra Pradesh, Kerala and Gujarat have the lowest minimum wages.
This Act also increases the minimum wage for disabled workers, making sure wage laws are fair to everyone.
Getting People to Agree
The act has an emphasis on consulting and then coming to agreements with the right people.
The government must first of all talk to the Committee and people who work for people who will be touched by minimum wage rules.
Such cooperation enables one to find minimum wage rates which are fair and just.
Setting and Changing Minimum Rates
The minimum wage is determined every day and is applicable across the board. The Act states that it may be adjusted every five years, with frequent rises to take into account increasing inflation. The Act governs wage patterns by applying procedures and using the advice of wage panels which are created specifically for each industry.
There you go!
Hope you now have a clear understanding of the Minimum Wages Act!
FAQs
What is the minimum salary as per the Wages Act?
It varies across regions. In addition, the Minimum Wages Act of 1948 specifies that the minimum wage may vary between Rs 160 (USD 1.) per day in Bihar and Rs 423 (USD 5) in Delhi.
What is the rule 21 of the Minimum Wages Act?
The pay for the work must be given to workers without deduction. However, apart from what is permitted by law or these regulations no other deductions are allowed.
How do you calculate minimum wage?
According to the minimum wage rules, a minimum monthly wage is equal to this equation: wage calculation = basic salary + fixed monthly attendance bonus (or festival allowances) + rest day allowances + any appropriate VDA component
Who decides minimum wages?
In accordance with the Minimum Wages Act of 1948, the Central Government has put down the basic standards. The State Governments may act to increase or decrease these standards in their own way so as to better satisfy local conditions.