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The Minimum Wages Act, 1948

Act : The Minimum Wages Act, 1948

Rules : The Maharashtra Minimum Wages Rules, 1963

No Provision Brief Description Periodicity Authority Designated

Officer

1. Sec 11, 12 , 15 and Rule 24 Wages to be paid in cash and at the minimum rates if it is a scheduled employment. Even if a worker worked less than what constitutes a normal working day (Normal working day will constitute 9 hours for an adult, 7 hours for an adolescent and 4 ½ hours for a child) A person is entitled to payment of minimum wages As and when Person who directly or through another person, whether himself/or on his behalf employs a person in a scheduled employment and manager of a factory
2. Sec 14 read with Rule 25 Preparation of contribution cards in Form 3 or Form 3-A for employees newly qualified to become members of EP fund As and when Ditto
3. Sec 17 Piece rate worker not to be paid wages less than the minimum time rate As and when Ditto
3. Sec 18 r/w Rule 27, Rule 28 and Rule 30 & Form II Maintenance of muster roll cum wage registers, attendance cum wage slip, records, inspection books etc Ongoing Ditto
4. Rule 22 r/w Form I Notice containing the minimum rates of wages, abstracts of the act and the rules etc are to be displayed, legible condition Weekly Ditto
5. Rule 22 r/w Form I Notice containing the minimum rates of wages, abstracts of the act and the rules etc are to be displayed, legible condition Ongoing Ditto
6. Rule 23 Weekly day of rest is to be provided to the employees Weekly Ditto
7. Rule 26 Persons working overtimes i.e. more than 9 hours a day or 48 hours a week are to be paid overtime wage at double the ordinary rate of wages As and when Ditto

1) Section 11

· Wages are to be paid in cash

· They can be paid in kind only by Notification in Official Gazette

· In case of schedule employment where a Notification is in force under Section 5 wages at the rate of not less than fixed Notification has to be paid

· Where the minimum wages of a worker are fixed under the Act (on a hourly, daily or longer basis) such workers shall be paid overtime (if they work overtime) as fixed under the Act

· In case the employee on any day works for less than the normal working hours for that day, he will still be paid minimum wages for the day unless the failure to work is due to his willingness to work and not due to the failure on the part of the employer to provide the employee with work

2) Section 16

In case the employee is performing two different kinds of jobs to which two different rates of minimum wages apply, he/she shall be paid according to the number of hours he/she devotes to the work and the final wages should not be less than the minimum rate in force in respect of any of the class of work that the employee performs

3) Section 17

An employee who is employed on piece work for which the minimum time rate and not a minimum piece rate has been fixed, the employer shall pay to such employees wages not less that the minimum time rate

4) Section 22

· Penalties are attracted in the following circumstances

· If any employer pays less than the minimum rates of wages fixed for that class of work or less than the amount the person is entitled to under the Act

· Or if the person contravenes any rule, order made in Section 13 (fixation of working hours);

· The person shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to Rs 500 or with both

5) Section 18 read with Rule 27, Rule 28, Rule 30 & Form 2, 17 and 19

· The following registers and records are to be maintained

· A muster roll cum wage register is to be maintained in Form II or registers in Form 17 and 19 appended to the Maharashtra Factories Rules 1963 and a register in Form II appended to the Maharashtra Payment of Wages Rules, 1963 are maintained. The registers shall contain the following particulars

· Gross wages of each person employed for each wage period

· All deductions that have been made from the wage along with a mention of the category of deduction made as per Rule 21

· Minimum rate of wages payable to each employee

· The wages that are actually paid to employees in each wage period

· The date of payment of wages

· Overtime done in each wage period by each employee

· The amount of leave with wages

· An attendance cum wage slip to be provided to the employees

· Entry in attendance cum wage slip to be made by person authorised everyday and also at the end of each month

· A bound inspection book has to be maintained and this has to be produced if required by the Inspector

· The records and registers are to be maintained atleast for a period of three years from the date on which the last entry was made and this shall be produced if required by the Inspector

6) Rule 21

Wage period of employees not to exceed one month

Ø Employees to be paid wages before expiry of

Ø The seventh day, in case of establishments employing less than thousand persons

Ø The tenth day in case the establishments employing more than thousand persons

No deductions other than those specified below can be made:-

· Fines in respect of such acts or omissions on the part of the employee as may be specified by the state government by general or special order

· Deduction for absence from duty

· Deduction made for damage or loss of goods that were entrusted to the employee or for loss of money which the employee is required to account for. In both cases the damage or loss must be directly attributable to the employees neglect or default.

· Deduction for house accomodation supplied by the employer or the Maharashtra Housing Board constituted under the Bombay Housing Board Act, 1948 or the Vidharbha Housing Board constituted under the Madhya Pradesh Housing Board Act, 1948 or the Vidharbha Housing Board constituted under the Madhya Pradesh Housing Board constituted under the Madhya Pradesh Housing Board Act 1950 of any other agency that the state government may direct by notification in the Official Gazette

· Deductions for recovery of advances or adjustment for over payment of wages. The advances should not be more than the wages payable to that employee in two calendar months and the deductions cannot be more than one-fourth of the salary earned by that employee

· Deduction of income tax payable by the employee

· Deduction directed by court order or order of any competent authority

· Deductions for subscriptions/payment of advances for Provident Fund

· Deduction of income tax payable by the employees

· Deduction directed by court order or order of any competent authority

· Deductions for subscription/ payment of advances for Provident Fund

· Deduction for payment to co-operative societies or deductions made with the written authorization of the employee for payment of Life Insurance Policy Premium

· Deduction of maximum of half the wages of the person for a maximum period of four months during which an employee is suspended from work by virtue of any rule standing order settlement or award which is legally binding

· Deductions or recovery or an adjustment of amount other than wages paid to the employed person in error or in excess of what is due to the employee

· Deductions made for purchasing securities fo the Govt of India or any other state Government or for saving account in the Post office savings bank in furtherance of saving scheme by the state government. This deduction can be made only by the authorisation of the employee concerned

· Deductions made with the authorization of the concerned employee or the president and the secretary of the trade union for contribution to the national defence fund or any other fund that is approved by the state government. This deduction can be made only by the authorization of the employee concerned

· Deductions made with the authorisation of the concerned employee or the president and the secretary of the trade union for contribution to the national defence fund or any other fund that is approved by the state government for national defence or for any other purpose that is notified by the government in the official gazette

· Deductions made under Section 6BB of the Bombay Labour Welfare Act, 1953

7) Rule 22 read with Form I

Notices containing the following are to be displayed in English and another language which is understood by the majority of the workers:-

· Minimum rates of wages, abstracts of the act and the rules made under Form I

· Name and address of the establishment, place of work

· Name and address of the employer

· Normal working hours of the employee, the intervals of rest

· The notice is to be displayed at the entrance of the establishment and office or any other place that may be selected by the inspector

· The notice shall be kept in clear and legible position

8) Rule 23

· All employees are to be provided with a day of rest every week. The rest day will usually be a Sunday or some other day and can also be fixed for any employee or group of employees

· In case any employee works on a rest day he/she shall be given a substituted rest day on any other day of the week

· Wages payable for working on a rest day will be at the rate the overtime wages are paid and normal day wages will be paid for the substituted rest day

· Employees who are paid wages at a piece rate basis, the employee shall be granted for the rest day wages, equal to the daily average earnings of the employee for the preceding 6 days and in case he works on the rest day and has been given a substituted rest day, he shall be paid wages for the rest day on which he worked at double the average wage rate as calculated above and for the substituted rest day at the said average rate

9) Rule 24

· The normal working hours in a day will be nine hours in case of an adult, seven hours in case of an adolescent and four and a half hours in case of a child

· No employee is to work for more than five hours at a stretch without taking an interval rest for atleast half an hour

· The work hours of a child should not spread over for more than five hours in a day including the time taken for rest intervals

10) Rule 25

· In case an employee works in a shift extending beyond 12 midnight

· A holiday would mean a whole day extending upto 24 hours starting from the time his shift ends

· The following day would mean the period of 24 hours beginning from the time when such shift ends and the hours after midnight during which such employee was engaged in work shall be counted towards previous day

11) Rule 26

Where an employee works more than 9 hours a day or 48 hours a week, the person shall be entitled to payment of overtime wages at double the ordinary rate of wages

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