mIn India, 422.

6 (94%) million workers out of the total

workforce of 457.5 million belong to the
unorganised/informal sector.

mContribute 60% of Indiaǯs GDP growth.

mAmong other sectors, these workers work as farm

labourers, landless labourers, factory workers and
construction workers.

mThe Act shall apply only when average monthly wages

are less than Rs. 6,500/-.
 Proposed By ILO in 1928 but implemented in INDIA in
1948.

 Passed in 1948 to secure the welfare of the unorganized

workers in certain industries by fixing the minimum rates
of wages.

 The fixation of minimum of wages relates to the industries

where sweated labor is most prevalent or where there is
inevitable chance of exploitation
 The act contains 31 sections and 1 schedule, which has 2
parts
 A wage is the remuneration paid, for the service of labour in
production, periodically to an employee / worker.

 DzWagesdz usually refer to the hourly rate paid to such groups as

production and maintenance employees (DzBlue- collar workersdz).

It includes:
 Any remuneration payable under any award or settlement or
order of a court.
 Remuneration for overtime work or holidays or any leave period.
 Any additional remuneration (incentives etc.)
 Any sum payable under a contract or otherwise upon
termination of employment (but not a retirement benefit).
 Any sum payable under any scheme in force.
 Wages do not include:
 Any bonus, not forming part of remuneration payable
under the terms of employment, any award, or
settlement or order of a court.
 Value of any house accommodation, light, water etc.
 Contribution by employer to any pension or provident
fund and the interest thereon.
 Any traveling allowance or concession
 Any sum paid towards expenses necessitated by
employment
 Any gratuity payable on termination of employment.
The wages shall be paid without deduction of any
kind expect those allowed by rules and
notifications.

The deductions are:

ß fines,
ß Deduction for absence from duty,
ß Deduction for damage or loss caused on a/c of the neglect,
ß Deduction for house accommodation and amenities,
ß Deduction of income tax payable by the employee,
ß Provident fund subscription
ß With the written authorization of the employed person: (a)
for life insurance premium, (b) for purchase of Govt.
securities, (c) deposits in post office savings a/c,
±nder sec 5,appiont as many
 committees and sub-committees necessary to hold
enquiries,
 By notification in the Official Gazette publish its
proposals for the information of persons affected.
 After considering the advice of the said committee
on the representations, the appropriate
Government will by notification in the Gazette fix
or revise the minimum rates of wages.