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 workers.
The Indian Constitution has defined a 'living wage' that is the level of income for a worker which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency. However, to keep in mind an industry's capacity to pay the constitution has defined a 'fair wage'.[1] Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry's capacity to pay. Due to an unjust attention towards the decades-old law it is now exploited by major businesses to underpay their employees, In public opinion government must set an yearly wage change just like countries internationally do.
To achieve this in its first session during November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage. This committee came up with the concept of a minimum wage, which not only guarantees bare subsistence and preserves efficiency but also provides for education, medical requirements and some level of comfort.[1]
India introduced the Minimum Wages Act in 1948,[2] giving both the Central government and State government jurisdiction in fixing wages. The act is legally non-binding, but statutory. Payment of wages below the minimum wage rate amounts to forced labour. Wage boards are set up to review the industry's capacity to pay and fix minimum wages such that they at least cover a family of four's requirements of calories, shelter, clothing, education, medical assistance, and entertainment. Under the law, wage rates in scheduled employments differ across states, sectors, skills, regions and occupations owing to difference in costs of living, regional industries' capacity to pay, consumption patterns, etc. Hence, there is no single uniform minimum wage rate across the country and the structure has become overly complex. The highest minimum wage rate as updated in 2012 was Rs. 322/day in Andaman and Nicobar[3] and the lowest was Rs. 38/day in Tripura.[4] In Mumbai, as of 2017, the minimum wage was Rs. 348/day for a safai karmachari (sewage cleaner and sweeper), but this was rarely paid.[5]
History
1920: K.G.R. Choudhary recommended setting up boards for determining minimum wages for each industry.[6]
1928: International Labour Conference implemented system to fix wages for different trades.[7] However, the practice was not put into legislation in India.
1943: Standing Labour Committee, a Labour Investigation Committee was appointed on the recommendation of Indian Labour Conference (ILC), 1943 to look into conditions of labour in terms of their wages, housing, social conditions, and employment.[8]
1945: The first bill on minimum wages was drafted in ILC.[8]
1946: A bill on minimum wages was introduced in Central Legislative assembly on the recommendations of 8th Standing Labour Committee. The 8th meeting of the Standing Labour Committee, 1946[8] also recommended that a separate legislation that specified working hours, minimum wages and paid holidays of unorganised sector be enacted.
1947: Post-independence representatives of labour, employers, and government attended a government-organised conference. They defined minimum wages to be such that they should not only provide for subsistence but should also be enough for education, medical requirements and other amenities and should sustain efficiency.[9]
1948: The Minimum Wages Act was eventually passed and was effective from 15 March. Under the act a tripartite committee "The Tripartite Committee of Fair Wage"[10] was appointed that set definitions and guidelines for formulating a wage structure in India. The Committee of fair wage definition of minimum wage as: "The minimum wages must be provided not merely for the bare subsistence of life but also for the preservation of efficiency of the workers by providing for some measures of education, medical requirement and amenities". Recommendations of this committee have now set the foundations of wage fixation.
1957: The 15th Labor conference added some norms in the fixation of minimum wages such that revision and fixation of wage rates are need-based. The recommendations were:[9]
The cost of three consumption units- husband, wife and two children for one earner. Income from women and children should be ignored
Satisfy the minimum food requirement of 2700 calories per person
Clothing requirement of 72 yards for a family annually
Rent of the minimum area as specified by Government's Industrial Housing Scheme
20% of minimum wage should be the cost of fuel and miscellaneous items of expenditure
1987: Parliamentary sub-committee on unorganised labour concluded that minimum wages fail to ensure a livelihood above the government defined poverty line for the unorganised sector. It also revealed some flaws in implementation of the act. The committee noted that wages are not fixed or revised regularly in some states.[11] The committee recommended that factors such as nutrition requirements, poverty line, shelter, clothing, fuel, light, medical and educational expenses should be taken into account while fixing and revising minimum wages.[12]
1988: Labour Minister's Conference recommend the necessity of an allowance that safeguards wages against inflation, called Variable Dearness Allowance (VDA).[13]
1991: Hon’ble Supreme court's judgment in the case of Reptakas & Co. specified that 25% of the minimum wages should also account for Children's education, required medical expenses, recreation in festivals/ceremonies and provision for old age and marriage. National Commission on Rural Labour (NCRL) recommended the government to introduce a national minimum wage floor level for uniformity.[14]
VDA became effective. It is revised twice in a year, on 1 April and 1 October.[15]
1992: Thirtieth session of ILC observed the ineffectiveness of states' implementation machinery and labour administration. It urged the civil society especially NGOs and workers' organisations to inspect and ensure payment of minimum wages.[1] The thirtieth session also discussed that officials should be wary of fixing minimum wage rates to impracticable high levels.
1994: The 9th Centre of Indian Trade Unions conference along with insisting a minimum wage floor of Rs. 78.50, raised the following demands
The family should be taken as five units instead of three.
The Minimum Wages Act should cover all employments.
There should be full neutralisation of cost of living with automatic linkage with the consumer prices index and revision after every six months or 50-point rise in the CPI, whichever is earlier.
1996: Government fixed the national minimum wage floor at INR 35/day as per the recommendations of NCRL. Since 2009 it stands at INR 100/day.[1]
2007: The Tamil Nadu state government announced that it has fixed minimum wages for 90% of all occupations.
The Indian National Trade Union Congress appeals for a "national decent minimum wage" for all industries that would be based on workers' needs.[1]
2008: Working Women in Houses Union marched in Salem demanding statutory fixation of minimum wages for house maids and servants.
2009: The Central government de-linked MGNREGA's wage rates from minimum wages through notification under Section 6(1). Wage rates that were initially aligned with respective states' minimum wages were now fixed at a uniform wage rate of Rs. 100/- under the scheme.[16]
On 12 August, the Andhra Pradesh wrote to the Ministry of Rural Development that workers under the MGNREGA scheme are being paid less than the Minimum wage rate and this could attract "contempt of court". There was no response to this.
On 10 July, the Labour Department responded to the notification of wage rate in MGNREGA scheme as against the minimum wage rate: "Minimum Wages Act, 1948 guarantees minimum wages to workers and there cannot be a wage rate less than the minimum wage rate in any circumstances."[16]
2010: Andhra Pradesh's government says that any payment including that under the MGNREGA scheme, below minimum wage rate is unconstitutional.
2011: As per Karnataka High Court's interim order MGNREGA's wage rates are to be aligned with the Minimum Wage rates of the state.[17]
National Human Right Commission convened a zonal workshop on fixation, revision and enforcement of minimum wage is Brick kiln industry.[18]
2012: Mazdoor Kisan Shakti Sangathan urges the Supreme Court to withdraw the SLP to the PM to rediscuss Karnataka High Court and Andhra Pradesh high Court's judgments[19]
Supreme Court asks the Central Government to consider respective states' minimum wages to bring parity between them.
The Labour Department decides to make revisions in minimum wage rates mandatory within three years.[20]
2015: From 1 July 2015 the National Floor Level of Minimum Wage was raised to Rs 160 per day.
2015: On 1 September 2015 labours in unorganised sector extended their support to one-day nationwide general strike[21] called by central trade unions (CTUs). Later than Shri Bandaru Dattatreya, the Minister of State(IC) for Labour and Employment, elaborated on the initiatives and continuing efforts of the Government to address the issues and concerns of the Trade Unions for the welfare of workers. If the norms are implemented then the minimum wage would be not less than Rs 273 per day which is currently Rs 160 per day.[22]
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.
Payment for the day decided to be given for rest should be paid at a rate not less than the overtime rate.
2) If an employee is involved in work that categorises his service in two or more scheduled employments, the employee's wage will include respective wage rate of all work for the number of hours dedicated at each task.
3) It is mandatory for the employer to maintain records of all employee's work, wages and receipts .
4) Appropriate governments will define and assign the task of inspection and appoint inspectors for the same.
Fixation and revision of minimum wages
The Minimum Wages Act 1948 generally specifies minimum wage rates on a per day basis,[23] 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. The norms in fixing and revision of minimum wages were first recommended by ILC, 1957.[24]
Revision of minimum wage rates is based on a 'cost of living index' and wages can be fixed for an entire state, part of the state, class or classes and employments pertaining to these categories. The fixation of wages is based on the norms mentioned and a wage board (different for different industry).
Under the Minimum Wages Act, State and Central Governments have the power to fix and revise minimum wages. The act specifies that the "appropriate" government should fix the wages i.e. if the wages to be fixed are in relation to any authority of Central government or Railway administration then the Central government fixes it. However, if the wage rate is to be fixed or revised for a scheduled employment, the respective state governments fix it. The Centre fixes the National floor level Minimum Wage that is lower than most states' respective minimum wages.[25] The ambiguity and overlap in the jurisdiction of both these tiers of government have caused debates and controversies. One of such debates revolves around fixing wage rates of MGNREGA scheme, an employment guarantee initiative by the Central Government[26]
As per Section 5 of the Minimum Wages Act, 1948, there are two ways of fixing and/or revising minimum wages • Committee Method: Committees and Sub-committees are set up to make recommendations or create inquiries. • Notification Method: The government publishes proposals and an official date in the Official Gazette. All advice and recommendations form various committees and sub-committees as well as representations are collected before the specified official date and the government then proceeds to fix/revise minimum wages.
Exclusions
Workers: Wages to disabled people and those payable to a dependent family member of the employer
Industries: Un-scheduled industries are generally excluded. For every revision of minimum wages, a state can add a minimum wage for an occupation or specify it for a sector.
Enforcement
The Central Government is the proper authority for enforcement of the act. Schedule employment is carried under the railway administration, mines, oilfield, major port and corporation established by Central Act. Chief Labour Commissioner is charged under central level, and at state level officers in industrial relations are charged for enforcement act and other labour laws.
Offences and penalties
Violation of the act in regards to minimum wages, working hours and other comes under Central Act as offences, and there is a penalties of 6months imprisonment and fine of Rs. 500/- (under section act 22). Any agreement whereby an employee reduces his right under this act shall be null and void.
Process of complaints
To process complaints the appropriate government can appoint a labour commissioner, Commissioner for Workmen's Compensation, or officer with experience as a judge of Stipendiary Magistrate or an officer that is at least above the rank of Labour Commissioner. If an individual feels that he/she is being paid less than the minimum wages specified for his region/sector/occupation, or is not paid for a duration of work, a complaint can be made to the appointed authority.
Minimum wage rates
The table below summarizes minimum wages across states. All states specify different minimum wages for different occupations and skill levels within those occupations. The table below briefly shows if the states account for Variable Dearness Allowance (VDA) that are linked and fixed according to average Consumer Price Index for Industrial Workers,[27] the range of minimum wages, and when these wages were last updated/revised. The period within which minimum wages are revised is different for different states. Some states revise their respective minimum wage rates every six months while some do so in five years.
Variable Dearness Allowance and Basic Rates for the employees employed in Agriculture w.e.f. 01.10.2020
Rates of V.D.A.
Category of worker
Rates of V.D.A. Area wise per day (in Rupees)
'A'
'B'
'C'
Unskilled
74
68
68
Semi-Skilled / Unskilled Supervisor
81
74
68
Skilled Clerical
88
81
74
Highly Skilled
97
90
81
The minimum rates of wages including the basic rates and Variable Dearness Allowance payable w.e.f. 01.10.2020 to the employees working in Agriculture shall be as under
Variable Dearness Allowance and Basic Rates for Industrial Workers w.e.f. 01.10.2020 for employees employed in employments in Gypsum Mines, Barytes Mines, Bauxite Mines, Manganese Mines, China Clay Mines, Kyanite Mines, Copper Mines, Clay Mines, Magnesite Mines, White Clay Mines, Stone Mines, 8teatite Minee (including the mines producing Soap Stores and TalcJ, Ochre Mines, Asbestos Mines, Pire Clay Mines, Chromite Mines, Quartzite Mines, Quartz Mines, Silica Mines, Graphite Mines, Felspar Mines, Laterite Mines, Dolomite Mines, Red Oxide Mines, Wolfram Mines Iron Ore Mines, Granite Mines Rock Phosphate Mines, Hematite Mines, marble and Calcite Mines, Uranium Mines, Mica Mines, Lignite Mines, Gravel Mines, Slate Mines and Magnetite Mines.
Rates of V.D.A.
Category of worker
Rates of V.D.A. (in Rupees) Per Day
For work above ground
For work below ground
Unskilled
77
97
Semi-Skilled / Unskilled Supervisor
97
116
Skilled Clerical
116
135
Highly Skilled
135
149
The minimum rates of wages showing the basic rates and Variable Dearness Allowance Payable w.e.f. 01.10.2020 will be as under:-
Category of worker
Rates of wages including V.D.A. (in Rupees) Per Day
For work above ground
For work below ground
Unskilled
350+77=427
437+97= 534
Semi-Skilled / Unskilled Supervisor
437+97=534
523+ 116=639
Skilled Clerical
523+ 116=639
610+ 135=745
Highly Skilled
610+ 135=745
683+ 149=832
Variable Dearness Allowance and Basic Rates for Industrial Workers w.e.f. 01.10.2020 for employees employed in construction or maintenance of roads or runways or in building operations including laying down underground electric, wireless, radio, television, telephone, telegraph and overseas communication cables and similar other underground cabling work, electric lines, water supply lines and sewerage pipe lines
Rates of V.D.A.
Category of worker
Rates of wages including V.D.A. Area wise per day (in Rupees)
'A'
'B'
'C'
Unskilled
116
97
77
Semi-Skilled / Unskilled Supervisor
128
109
90
Skilled Clerical
140
128
109
Highly Skilled
152
140
128
The minimum rates of wages showing the Basic Rates and Variable Dearness Allowance Payable w.e.f. 01.10.2020 will be as under:-
Category of worker
Rates of wages including V.D.A. Area wise per day (in Rupees)
'A'
'B'
'C'
Unskilled
523+116=639
437+97=534
350+77=427
Semi-Skilled / Unskilled Supervisor
579+128=707
494+109=603
410+90=500
Skilled Clerical
637+140=777
579+128=707
494+109=603
Highly Skilled
693+152=845
637+140=777
579+128=707
Variable Dearness Allowance and Basic Rates for Industrial Workers w.e.f. 01.10.2020 for employees employed in loading and unloading in (i) goods sheds, parcel offices of railways, (ii) other goods-sheds, godowns, warehouses and other similar employments; (iii) docks and ports; and (iv) passengers goods and cargo carried out at airports (both international and domestic).
Rates of V.D.A.
AREA
RATES OF V.D.A. PER DAY (IN RS.)
'A'
116
'B'
97
'C'
77
The minimum rates of wages showing the basic rates and Variable Dearness Allowance payable w.e.f. 01.10.2020 shall be as under:-
AREA
RATES OF wages plus V.D.A. PER DAY (IN RS.)
'A'
523+116=639
'B'
437+97=534
'C'
350+77=427
Variable Dearness Allowance and Basic Rates for Industrial Workers w.e.f. 01.10.2020 for employees employed In "employment of sweeping and cleaning excluding activities prohibited under the employment of manual scavengers and construction of dry latrines (prohibition) act, 1993".
Rates of V.D.A.
AREA
RATES OF V.D.A. PER DAY (IN RS.)
'A'
116
'B'
97
'C'
77
The minimum rates of wages showing the Basic Rates and variable Dearness Allowance payable w.e.f. 01.10.2020 shall be as under:-
AREA
RATES OF wages plus V.D.A. PER DAY (IN RS.)
'A'
523+116=639
'B'
437+97=534
'C'
350+77=427
The minimum rates of wages showing the Basic Rates and Variable Dearness Allowance for Industrial Workers payable w.e.f. 01.10.2020 to employees employed in WATCH AND WARD (without arms) shall be as under:-
AREA
RATES OF wages plus V.D.A. PER DAY (IN RS.)
'A'
637+140=777
'B'
579+128=707
'C'
494+109=603
The minimum rates of wages showing the Basic Rates and Variable Dearness Allowance for Industrial Workers payable w.e.f. 01.10.2020 to employees employed in WATCH AND WARD (with arms) shall be as under:-
AREA
RATES OF wages plus V.D.A. PER DAY (IN RS.)
'A'
693+152=845
'B'
637+140=777
'C'
579+128=707
The minimum piece rate wages showing the Basic and Variable Dearness Allowance for Industrial Workers payable w.e.f. 01.10.2020 to the employees employed in Store Mines shall be as under:-
Category
Basic wages plus V.D.A (IN RS.)
Excavation & removal of over burden with 50 meters Lead / 1.5 Meters lift. *
1. Soft Soil
2. Soft Soil with Rock
3. Rock
351+80=431
531+117=648
703+155=858
Removal and stacking of rejected stones with 50 meters lead/1.5 meters lift. *
283+63=346
Stone Breaking or Stone Crushing for Stone Size of Category**
1. 1.0 inch to 1.5 inches
2. Above 1.5 inches to 3.0 inches
3. Above 3.0 inches to 5.0 inches
4. Above 5.0 inches
2171+471=2642
1857+403=2260
1088+238=1326
893+196=1089
The workers employed on minimum guaranteed time rate of wages per day shall be entitled to time rate of minimum wages plus special allowance, if any, for unskilled category of above ground workers revised from time to time by the Central Government in respect of scheduled employment in stone mines.
* Per 2.831 cube meters (100 cubic feet)
** Per truck load of 5.662 cubic meters (200 cubic feet)
CLASSIFICATION OF AREA
AREA – "A"
Ahmedabad
(UA)
Hyderabad
(UA)
Faridabad complex
Bangaluru
(UA)
Kanpur
(UA)
Ghaziabad
Kolkata
(UA)
Lucknow
(UA)
Gurgaon
Delhi
(UA)
Chennai
(UA)
Noida
Greater Mumbai
(UA)
Nagpur
(UA)
Secunderabad
Navi Mumbai
Pune
(UA)
AREA – "B"
Agra
(UA)
Gwalior
(UA)
Port Blair
(UA)
Ajmer
(UA)
Hubli-Dharwad
(M. Corpn)
Puducherry
(UA)
Aligarh
(UA)
Indore
(UA)
Raipur
(UA)
Allahabad
(UA)
Jabalpur
(UA)
Raurkela
(UA)
Amravati
(M.Corpn)
Jaipur
(M.Corpn)
Rajkot
(UA)
Amritsar
(UA)
Jalandhar
(UA)
Ranchi
(UA)
Asansol
(UA)
Jalandhar-Cantt.
(UA)
Saharanpur
(M.Corpn)
Aurangabad
(UA)
Jammu
(UA)
Salem
(UA)
Bareilly
(UA)
Jamnagar
(UA)
Sangli
(UA)
Belgaum
(UA)
Jamshedpur
(UA)
Shillong
Bhavnagar
(UA)
Jhansi
(UA)
Siliguri
(UA)
Bhiwandi
(UA)
Jodhpur
(UA)
Solapur
(M.Corpn)
Bhopal
(UA)
Kannur
(UA)
Srikakulam
(UA)
Srinagar
(UA)
Bhubaneshwar
(UA)
Kochi
(UA)
Surat
(UA)
Bikaner
(M.Corpn)
Kolhapur
(UA)
Thiruvananthapuram
(UA)
Bokaro Steel City
(UA)
Kollam
(UA)
Thrissur
(UA)
Chandigarh
(UA)
Kota
(M.Corpn)
Tiruchirappalli
(UA)
Coimbatore
(UA)
Kozhikode
(UA)
Tiruppur
(UA)
Cuttack
(UA)
Ludhiana
(M.Corpn)
Ujjain
(M.Corpn)
Darbhanga
(UA)
Dehradun
(UA)
Madurai
(UA)
Vadodara
(UA)
Dhanbad
(UA)
Malappuram
(UA)
Varanasi
(UA)
Durgapur
(UA)
Malegaon
(UA)
Vasai- Virar City
(M.Corpn)
Durg-Bhilai Nagar
(UA)
Mangalore
(UA)
Vijayawada
(UA)
Erode
(UA)
Meerut
(UA)
Vishakhapatnam
(M.Corpn)
Firozabad
Moradabad
(M. Corpn)
Warangal
(UA)
Goa
Mysore
(UA)
Gorakhpur
(UA)
NandedWaghala
(M. Corpn)
GreaterVisakhapatnam
(M.Corpn)
Nasik
(UA)
Gulbarga
(UA)
Nellore
(UA)
Guntur
(UA)
Panchkula
(UA)
Guwahati
(UA)
Patna
(UA)
Area 'C' will comprise all areas not mentioned in this list.
NB: U.A. stands for Urban Agglomeration.
Issues
42% of all wage earners in India receive wages below the national minimum wage floor rate.[28] 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 paid higher than the minimum wage. Whereas casual workers in construction and unorganised workers in production and manufacturing are likely to receive wages at the minimum wage rate. In sum, the implementation and enforcement of minimum wages is dismal and marginalised groups and communities suffer the most. The government has announced that many amendments are underway to improve enforcement such as penal action against violations and mandatory revision of minimum wages every 5 years.[29]
Large unemployment: Ensuring a payment at the minimum wage rate does not ensure employability to a willing worker. Many workers out of desperation then accept a wage below the minimum wage. Workers are too weak and vulnerable to demand their rights and after liberalisation, collective rights to have grown weaker with decreasing power of trade unions. These two factors combined give the employer the capacity to offer employment at wages below the minimum wage rate. There have also been cases where workers are paid wages below the minimum wage floor in government funded road and construction projects.[30]
Less protection against inflation: Real minimum wage rates may decline in the face of accelerating inflation for three main reasons. Firstly, wages are not revised as frequently as prescribed in the norms i.e. not more than five years. In fact it is believed that revision every three years and even alternate years not only to help workers from increasing costs of living but also to improve supervision of the act.[31] Secondly, many states do not provide for dearness allowance, a safeguard against inflation and finally minimum wages are not linked to a cost of living index.
Exemptions from payment of minimum wages: Government projects have been known to resort to various channels for paying wages below the minimum wage rate. They use methods such as special notifications and exemption clause (26-2) of the Minimum Wages Act.[30] The parliamentary sub-committee, 1987 noted that wages of government programs such as NREP and RLEGP were below the prescribed minimum wage rate. Many professions and industries do not fall under the coverage of the act, for the simple reason that no minimum wage has yet been prescribed,[2] hence employers pay wages on their own discretion.
Lack of awareness: Many citizens are not aware of the existence of a statutory provision that ensures a minimum wage rate. "80% of workers earn less than INR 20/day or less than half of government stipulated minimum wage rate (rural INR 49 and urban INR 67)”.[2] On certain instances of doubt among workers on existence of a minimum wage rate, officials have denied claims of any statutory act or legislation.[11]
Delays and inaction: There are delays in appointment of committees for fixation, revision and implementation. A lot of industries and industries do not fall under the purview of the act as their specific minimum wage rates are yet to be fixed. Permanent Labour Inspectors have not been posted in many districts and those posted are known to not visit their districts regularly.[32] For instance in 2008, inspections in Arunachal Pradesh were as low as 7 while Maharashtra reported to have 71651 inspections.
Terminology: The government and its committees have defined three types of wages: 'living wage', 'minimum wage' and 'fair wage'. These concepts are vague in definition and correspond to a utopia where the government and industry could afford them.[32]
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 Maharashtra revised and increased their minimum wage rates. This had direct implications on Central Government's budget set aside for MGNREGA scheme. The move of freezing MGNREGA scheme created an upheaval of discontent in various parts and sections of India as the move was considered to breach Minimum Wages Act, 1948. MGNREGA wage rates were less than the minimum wage rates of respective states and in five states they were even below the National Floor level of minimum wage.[33] Protests broke out throughout India coupled with controversies over corruption, under-payment of workers, poor quality of infrastructure, ambiguous source of funds and unintended negative effect on poverty. Recommendations made by National Advisory Council and Centre Employment Guarantee Council chaired by Jean Drèze that MGNREGA's wage rates should be synced with Minimum Wages Act were rejected by the Central Government. The Central Government stuck to its decision of freezing MGNREGA wages even after an order from Supreme Court. Eventually, the Prime Minister agreed to accept recommendations and indexed MGNREGA wages to Minimum wage rates until an expert committee chaired by Pranab Mukherjee made a satisfactory index. He however maintained a clear distinction between MGNREGA wage rates and Minimum wage rates to avoid inflating budget on revision of state-wise minimum wages.
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 supported this view. In 1955, during the Tripartite Labour Conference, labour representatives demanded immediate fixation of a minimum wage at national level, at least in agriculture.[34] The most recent development in this debate involves the Labour Ministry and the Commerce and Industry Ministry at loggerheads over the introduction of a National floor level minimum wage rate. The Commerce and Industry Ministry argues that a national rate would further burden the industry that is anyway incurring heavy costs. On the other hand, the Labour Ministry has given a proposal to the centre to impose a national floor to wage rates and most state governments have approved for it.[35] After a two-day strike ending on 21 February 2013, PM Manmohan Singh announced that all unskilled workers would be paid the national floor level minimum wage.[29] This would be included in one of the many amendments of the Minimum Wages Act, 1948 to be introduced this year. Currently the floor level of minimum wages is 115, though Gujarat, Maharashtra, Andhra Pradesh and Kerala have set lower floors.
Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.
A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century. Because minimum wages increase the cost of labor, companies often try to avoid minimum wage laws by using gig workers, by moving labor to locations with lower or nonexistent minimum wages, or by automating job functions. Minimum wage policies can vary significantly between countries or even within a country, with different regions, sectors, or age groups having their own minimum wage rates. These variations are often influenced by factors such as the cost of living, regional economic conditions, and industry-specific factors.
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by governmental bodies to unemployed people. Depending on the country and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.
A living wage is defined as the minimum income necessary for a worker to meet their basic needs. This is not the same as a subsistence wage, which refers to a biological minimum, or a solidarity wage, which refers to a minimum wage tracking labor productivity. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living through employment without government subsidies. Due to the flexible nature of the term "needs", there is not one universally accepted measure of what a living wage is and as such it varies by location and household type. A related concept is that of a family wage – one sufficient to not only support oneself, but also to raise a family.
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. Salary can also be considered as the cost of hiring and keeping human resources for corporate operations, and is hence referred to as personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
The National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom. From 1 April 2024, the minimum wage is £11.44 for people aged 21 and over, £8.60 for 18- to 20-year-olds, and £6.40 for 16- to 17-year-olds and apprentices.
Under the Constitution of Canada, the responsibility for enacting and enforcing labour laws, including the minimum wage, rests primarily with the ten Provinces of Canada. The three Territories of Canada have a similar power, delegated to them by federal legislation. Some provinces allow lower wages to be paid to liquor servers and other gratuity earners or to inexperienced employees.
Dearness Allowance (DA) is a calculation of inflation paid to government officials and public sector workers’ employees. Public sector unit employees are also government employees, but not civil servants). Some private sector employees and civil servant, are pensioners in India.
Clement Attlee was invited by King George VI to form the Attlee ministry in the United Kingdom in July 1945, succeeding Winston Churchill as Prime Minister of the United Kingdom. The Labour Party had won a landslide victory at the 1945 general election, and went on to enact policies of what became known as the post-war consensus, including the establishment of the welfare state and the nationalisation of 20 percent of the entire economy. The government's spell in office was marked by post-war austerity measures; the crushing of pro-independence and communist movements in Malaya; the grant of independence to India, Pakistan, Ceylon, and Burma; the engagement in the Cold War against Soviet Communism; and the creation of the country's National Health Service (NHS).
Compensation of employees (CE) is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year.
The Employees' Provident Fund Organisation (EPFO) is one of the two main social security organization under the Government of India's Ministry of Labour and Employment and is responsible for regulation and management of provident funds in India, the other being Employees' State Insurance. The EPFO administers the retirement plan for employees in India, which comprises the mandatory provident fund, a basic pension scheme and a disability/death insurance scheme. It also manages social security agreements with other countries. International workers are covered under EPFO plans in countries where bilateral agreements have been signed. As of May 2021, 19 such agreements are in place. The EPFO's top decision-making body is the Central Board of Trustees (CBT), a statutory body established by the Employees' Provident Fund and Miscellaneous Provisions (EPF&MP) Act, 1952. As of 2021, more than ₹15.6 lakh crore are under EPFO management.
Mahatma Gandhi National Rural Employment Guarantee Act 2005 or MGNREGA, earlier known as the National Rural Employment Guarantee Act or NREGA, is an Indian social welfare measure that aims to guarantee the 'right to work'. This act was passed on 23 August 2005 and was implemented in February 2006 under the UPA government of Prime Minister Manmohan Singh following tabling of the bill in parliament by the Minister for Rural Development Raghuvansh Prasad Singh.
Social welfare has long been an important part of New Zealand society and a significant political issue. It is concerned with the provision by the state of benefits and services. Together with fiscal welfare and occupational welfare, it makes up the social policy of New Zealand. Social welfare is mostly funded through general taxation. Since the 1980s welfare has been provided on the basis of need; the exception is universal superannuation.
Minimum wage law is the body of law which prohibits employers from hiring employees or workers for less than a given hourly, daily or monthly minimum wage. More than 90% of all countries have some kind of minimum wage legislation.
The First Labour Government of New Zealand was the government of New Zealand from 1935 to 1949. Responsible for the realisation of a wide range of progressive social reforms during its time in office, it set the tone of New Zealand's economic and welfare policies until the 1980s, establishing a welfare state, a system of Keynesian economic management, and high levels of state intervention. The government came to power towards the end of, and as a result of, the Great Depression of the 1930s, and also governed the country throughout World War II.
The history of minimum wage is about the attempts and measures governments have made to introduce a standard amount of periodic pay below which employers could not compensate their workers.
Labour in India refers to employment in the economy of India. In 2020, there were around 476.67 million workers in India, the second largest after China. Out of which, agriculture industry consist of 41.19%, industry sector consist of 26.18% and service sector consist 32.33% of total labour force. Of these over 94 percent work in unincorporated, unorganised enterprises ranging from pushcart vendors to home-based diamond and gem polishing operations. The organised sector includes workers employed by the government, state-owned enterprises and private sector enterprises. In 2008, the organised sector employed 27.5 million workers, of which 17.3 million worked for government or government owned entities.
The History of labour law in the United Kingdom concerns the development of UK labour law, from its roots in Roman and medieval times in the British Isles up to the present. Before the Industrial Revolution and the introduction of mechanised manufacture, regulation of workplace relations was based on status, rather than contract or mediation through a system of trade unions. Serfdom was the prevailing status of the mass of people, except where artisans in towns could gain a measure of self-regulation through guilds.The law of the land was, under the Act of Apprentices 1563, that wages in each district should be assessed by Justices of the Peace. From the middle of the 19th century, through Acts such as the Master and Servant Act 1867 and the Employers and Workmen Act 1875, there became growing recognition that greater protection was needed to promote the health and safety of workers, as well as preventing unfair practices in wage contracts.
Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019. Despite having one of the longest working hours, India has one of the lowest workforce productivity levels in the world.
The Inter-State Migrant Workmen Act, 1979 was an Act of the Parliament of India enacted to regulate the condition of service of inter-state labourers in Indian labour law. The Act's purpose was to protect workers whose services are requisitioned outside their native states in India. Whenever an employer faces shortage of skills among the locally available workers, the act created provisions to employ better skilled workers available outside the state. The act was replaced by the Occupational Safety, Health and Working Conditions Code, 2020
↑ Belser, Patrick; Uma Rani (28 May 2011). "Extending the Coverage of Minimum Wages in India: Simulations from Household Data". Economic and Political Weekly. XLVI (22).
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