Write a note on Fixing of Minimum Rates of Wages.

Fixing of minimum rates of wages: The responsibility of fixing the minimum rates of wages is that of the appropriate Government. The appropriate Government

  • Shall fix the minimum rates of wages payable to employees employed In an employment specified in Part I or Part II of the Schedule.
  • May respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages for the whole State, fix such rates for a part of the State or for any specified class Or classes.
  • Shall review at such intervals not exceeding 5 years, the minimum rates of wages so fixed and revise the minimum rates if necessary.

Minimum number of employees for the purpose of fixing of minimum rates of wages: The appropriate Government may refrain from fixing minimum rates of , wages in respect of any scheduled employment in which there are, in the whole State, less than 1,000 employees engaged in such employment. If the appropriate Government finds after an inquiry that the number of employees in any scheduled employment has risen to 1,000 or more, it shall fix minimum rates of wages in such employment as soon as may be after such finding.

The appropriate Government may fix:

  • Minimum time work rate.
  • Minimum piece work rate.
  • Guaranteed time rate i.e. a minimum rate of remuneration for such employees employed on piece work but for the purpose of securing such employees a minimum rate of wages on a time work basis.
  • Overtime rate.

Different minimum rates: In fixing or revising minimum rates of wages, different minimum rates of wages may be fixed for

  • Different scheduled employments.
  • Different classes of work in the same scheduled employment.
  • Adults, adolescents, children and apprentices and
  • Different localities.

While fixing or revising minimum rates of wages, minimum rates of wages may be fixed by:

  • The hour
  • The day,
  • The month, or
  • Such other larger wage period as may be prescribed.

Where such rates are fixed by the day or by the month, the manner of calculating wages for a day or for a month, as the case may be, may be indicated. Where any wage periods have been fixed under Section 4 of the Payment of Wages Act, 1936, minimum wages shall be fixed in accordance therewith.

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