Definition: An Act to provide for fixing minimum rates of wages in certain employments. It extends to the whole of India. The appropriate govt fixes minimum rates of wages. The govt. review (at intervals not exceeding five years) the minimum rates or so fixed and revised the minimum rates.

The Minimum Wages can be fixed on basis of:

Rate of wages for time work (a minimum time rate).

Rate of wages for Piece work (a minimum piece rate).

Piece work for the purpose of securing employees on a time work basis (a guaranteed time rate).

Overtime work done by employees for piece work or time rate workers.

The Minimum Wages can be vary on basis of:

Different scheduled employments.

Different classes of work in the same scheduled employment.

Adults, adolescents, children and apprentices.

Different localities.

Procedure for fixing and revising minimum wages: In fixing minimum rates of wages in r/o any scheduled employment for the first time or in revising minimum rates of wages, the appropriate Govt. shall either appoint as many committees as it considers necessary and advise it in r/o such fixation or revision or by notification of Gazette, publish its proposals for the information of persons and specify a date, not less than two months from the date of the notification.

Appropriate Government: In relation to any scheduled employment carried on by or under the authority of the   Central Govt., a railway administration, a mine, oilfield or major port, any corporation established by (Central Act), the Central Govt, and in relation to any other employment, the State Govt.

Cost of Living Index Number: The index number ascertained and declared by the competent authority by notification in the Gazette to be the cost of living index number applicable to employees in such employment.

FACTORS OF MINIMUM RATE OF WAGES: A Minimum Wages may consist of:-

a basic rate of wages and a special allowance (which may be adjusted, at intervals and in such manner as the appropriate Government may direct), to accord as nearly as practicable with the variation in the “cost of living index” number applicable to such workers (“cost of living allowance”);

a basic rate of wages with or w/o the cost of living allowance, and the cash value of the concessions in r/o essential commodities at concession rates.

 an all-inclusive rate (allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any).

WAGES: All remuneration (expressed in terms of money) payable to a person for work, but does not include:-

 value of any house-accommodation, supply of light, water, medical attendance, other amenity/service excluded by general / special order of the appropriate Govt.

Contribution towards any Pension Fund/PF or under any social ins. scheme.

 any travelling allowance or the value of any travelling concession;

 Payment to person towards defray special expenses entailed on him by the nature of his employment. Amount of any gratuity payable on discharge.

OVERTIME: Where an employee works on in excess of the no. of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate Govt. for the time being in force, whichever is higher.

MAINTENANCE OF REGISTERS AND RECORDS: Every employer shall maintain such registers and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them and such other particulars and in such form.