MINIMUM WAGES ACT, 1948
Background
A tripartite Committee Viz.,"The Committee on Fair Wage" was set up in 1948 to provide guidelines for wage structures in the country. The report of this Committee was a major landmark in the history of formulation of wage policy in India. Its recommendations set out the key concepts of the `living wage', "minimum wages" and "fair wage" besides setting out guidelines for wage fixation. Article 39 states that the State shall, in particular, direct its policy towards securing (a) that the citizen, men and women equally shall have the right to an adequate livelihood and (b) that there is equal pay for equal work for both men and women. Article 43 states that the State shall endeavour, by suitable legislation or economic organisation or in any other way, to give all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure, and social and cultural opportunities.
Enactment of the Minimum Wages Act
Historical Backdrop
* The initiative started with the resolution placed by one Shri K.G.R.Choudhary in
1920 for setting up Boards for determination of minimum wages in each industry.
* The International Labour Conference adopted in 1928 Convention No.26 and
Recommendation No. 30 relating to wage fixing machinery in trades or parts of trades.
* On the recommendation of the Standing Labour Committee and Indian Labour
Conference, a Labour Investigation Committee was appointed in 1943 to investigate into the question of wages and other matters like housing, social conditions and employment.
* A draft bill was considered by the Indian Labour Conference in 1945.
* The 8th meeting of the Standing Labour Committee recommended in 1946 to
enact a separate legislation for the unorganised sector including working hours,
minimum wages and paid holidays.
* A Minimum Wages Bill was introduced in the Central Legislative Assembly on
11.4.46 to provide for fixation of minimum wages in certain employments. It was
passed in 1946 and came into force with effect from 15.3.48. Under the Act, Central and State Governments are appropriate Governments to
(a) notify scheduled employment
(b) fix/revise minimum wages
The Act contains list of all these employments for which minimum wages are to be fixed by the appropriate Governments. There are two parts of the Schedule. Part I has non-agricultural employments whereas Part-II relates to employment in agriculture.
Criteria for notification of scheduled employment
The appropriate Government fixes the minimum wage in respect of only those
scheduled employments where the number of employees is 1000 or more.
Fixation/revision of minimum wages Norms
The norms include those which were recommended by the Indian Labour Conference in its session held in 1957.
(i) 3 consumption units for one earner.
(ii) Minimum food requirements of 2700 calories per average Indian adult.
(iii) Clothing requirements of 72 yards per annum per family.
(iv) Rent corresponding to the minimum area provided for under Government's
Industrial Housing Scheme.
(v) Fuel, lighting and other miscellaneous items of expenditure to constitute 20%
of the total Minimum Wages.
Other parameters
(i) "Children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. should further constitute 25% of the total minimum wage." This judgment was delivered by the Supreme Court of India in 1991 in the case of Reptakos Brett and Co.Vs.its workmen.
(ii) Local conditions and other factors influencing the wage rate.
Methods for fixation/revision of minimum wages Fixation
Section 3 empowers appropriate Government to fix the minimum rates of wages
in the scheduled employments.
Revision
Revise the Minimum rates at an appropriate interval not exceeding five years.
Procedure for Fixation/Revision
In Section 5 of the Minimum Wages Act, 1948, two methods have been provided for fixation/revision of minimum wages. They are Committee method and Notification method.
Committee Method
Under this method, committees and sub-committees are set up by the appropriate Governments to hold enquiries and make recommendations with regard to fixation and revision of minimum wages, as the case may be.
Notification method
In this method, Government proposals are published in the Official Gazette for information of the persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals will be taken into consideration.
After considering advice of the Committees/Sub-committees and all the representations received by the specified date in Notification method, the appropriate Government shall, by notification in the Official Gazette, fix/revise the minimum wage in respect of the concerned scheduled employment and it shall come into force on expiry of three months from the date of its issue.
Variable Dearness Allowance (VDA)
It was recommended in the Labour Ministers' Conference held in 1988, to evolve a mechanism to protect wages against inflation by linking it to rise in the Consumer Price Index. The Variable Dearness Allowance came into being in the year 1991. The allowance is revised twice a year, once on 1st April and then on 1st October. In the State Sphere, 26 States/Union Territories have provisions for Variable Dearness Allowance, at present.
Enforcement Machinery
The enforcement of the provisions of the Minimum Wages Act in the Central Sphere is secured through the officers of Central Industrial Relations Machinery. In so far as State Sphere is concerned, the enforcement is the responsibility of the respective State Government/Union Territory.
National Wage Policy
Though it is desirable to have a National Wage Policy it is difficult to conceive a concept of the same. The National Wage Policy has been discussed on many occasions in different fora. Because fixation of wages depends on a number of criteria like local conditions, cost of living and paying capacity also varies from State to State and from industry to industry, it would be difficult to maintain uniformity in wages. The Indian Labour Conference, held in November, 1985 expressed the following views-
Till such time a national wage is feasible, it would be desirable to have regional minimum wages in regard to which the Central Government may lay down the guidelines. The Minimum Wages should be revised at regular periodicity and should be linked with rise in the cost of living
Accordingly, the Government issued guidelines in July, 87 for setting up of Regional Minimum Wages Advisory Committees. These Committees renamed subsequently as Regional Labour Ministers Conference, made a number of recommendations which include reduction in disparities in minimum wages in different states of a region, setting up of inter-state Coordination Council, consultation with neighbouring States while fixing/revising minimum wages etc.
Regional committees to reduce disparities in wages
There is disparity in rates of minimum wags in various regions of the country. This is due to differences in socio-economic and agro-climatic conditions, prices of essential commodities, paying capacity, productivity and local conditions influencing the wage rate. The regional disparity in minimum wages is also attributed to the fact that both the Central and State Governments are the appropriate Government to fix, revise and enforce minimum wages in scheduled employments in their respective jurisdictions under the Act . To bring uniformity in the minimum wages of scheduled employments, the Union Government has requested the States to form regional Committees. At present there are five Regional Minimum Wages Advisory Committees in the country which are as under:-
Region States/UTs covered
Eastern Region West Bengal, Orissa, Bihar, Jharkhand and Andaman & Nicobar Islands.
North Eastern Region Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Sikkim, Nagaland and Tripura.
Southern Region Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry and Lakshadwadeep.
Northern Region Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Haryana, Uttar Pradesh, Uttranchal, Delhi and Chandigarh.
Western Region Maharashtra, Gujarat, Goa, Madhya Pradesh, Chhattisgarh, Dadra & Nagar Haveli and Daman & Diu.
The meeting of the Regional Committee on Minimum Wages for the these Regions are being held from time to time.
National Floor Level Minimum Wage
In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, concept of National Floor Level Minimum Wage was mooted on the basis of the recommendations of the National Commission on Rural Labour (NCRL) in 1991. Keeping in view the recommendation of NCRL and subsequent rises in price indices, the National Floor Level Minimum Wage was fixed at Rs.35/- per day in 1996.
The Central Government raised the national floor level minimum wage to Rs.40/- per day in 1998 and further to Rs.45/- w.e.f. 01.12.1999, and Rs. 50/- per day w.e.f. 1.9.2002 keeping in view the rise in consumer price index.
Based on the norms suggested by the Working Group and its acceptance by the Central Advisory Board subsequently in its meeting held on 19.12.2003, national floor level minimum wage has last been revised upwards to Rs. 66/- per day with effect from 1.02.2004. The national floor level minimum wage, however, has no statutory backing. The State Governments are persuaded to fix minimum wages such that in none of the scheduled employments, the minimum wage is less than National floor level minimum wage. This method has helped in reducing disparity among different rates of minimum wages to some extent. To sum up, effective implementation of the Minimum Wages Act, 1948, which primarily falls in the State sphere, is assiduously pursued by Ministry of Labour and Employment through discussion, writing letters, personal interaction and visits to States. The State Governments are regularly asked to fix and revise minimum wages
in scheduled employments to be at least at par with national floor level minimum wage of Rs. 66 per day.
SCHEDULED EMPLOYMENTS FOR WHICH CENTRAL GOVERNMENT HAS FIXED MINIMUM WAGES UNDER THE MINIMUM WAGES ACT, 1948
S. No Name of Employment Minimum Wages per day (in Rs.)
1 2 3
1 Agriculture 107.78
2 Construction/Maintenance of Roads and Building Operations. 67.43
3 Maintenance of buildings 67.43
4. Construction and Maintenance of Runways. 67.43
5. Gypsum mines. 67.43
6. Barytes mines. 67.43
7. Bauxite mines. 67.43
8. Manganese mines. 67.43
9. China Clay mines. 67.43
10 Kyanite mines. 67.43
11 Copper mines. 67.43
12 Clay mines. 67.43
13 Stone mines. 67.43
14 White Clay mines. 67.43
15 Ochre mines 67.43
16 Fire Clay mines. 67.43
17 Steatite (Soapstone and Talc) Mines. 67.43
18 Asbestos mines. 67.43
19 Chromite mines. 67.43
20 Quartzite Mines 67.43
21 Quartz mines 67.43
22 Silica mines. 67.43
23 Magnesite Mines 67.43
24 Graphite mines. 67.43
25 Felspar mines. 67.43
26 Red oxide mines. 67.43
27 Laterite mines. 67.43
28 Dolomite mines. 67.43
29 Iron Ore mines. 67.43
30 Granite mines. 67.43
31 Wolfram mines. 67.43
32 Magnetite mines. 67.43
33 Rock phosphate mines. 67.43
34 Hematite mines. 67.43
35 Marble and Calcite Mines. 67.43
36 Uranium mines. 67.43
37 Mica mines. 67.43
38 Employment in Lignite Mines 67.43
39 Employment in Gravel Mines 67.43
40 Employment in the Slate Mines 67.43
41 Employment in laying down of underground electric, wireless, radio, television, telephone, telegraph and overseas communication cables and similar other underground cabling, electric lines water supply lines and sewerage pipe lines 67.43
42 Loading, Unloading in Railways Goods Shed 67.43
43 Ash Pit Cleaning in Railways 67.43
44 Stone Breaking and Stone Crushing 87.24
45 Security Services* 70.00
46 Sweeping and Cleaning Not yet fixed
* Rate as per draft Notification
PAYMENT OF WAGES ACT, 1936
Brief background
The Payment of Wages Act, 1936
The Payment of Wages Act, 1936 was enacted to regulate payment of wages to workers employed in Industries and to ensure a speedy and effective remedy to them against illegal deductions and/or unjustified delay caused in paying wages to them. The existing wage ceiling under Payment of Wages Act, 1936, was fixed at Rs. 1600/- pm in 1982. With a view to enhance the wage ceiling to Rs. 6500/- p.m. for applicability of the Act, to empower the Central Government to further increase the ceiling in future by way of notification and to enhance the penal provisions etc., the Payment of Wages (Amendment) Act, 2005, which was passed by both Houses of Parliament, has been notified on 6.9.2005 as an Act 41 of 2005 by the Ministry of Law & Justice. Subsequently, the Ministry of Labour & Employment has issued the Notification No. SO 1577(E) to make the Payment of Wages (Amendment) Act, 2005 effective from the 9th November 2005.
Enforcement Machinery
The Central Government is responsible for the administration of the Act in railways, mines, oilfields and air transport services, while State Governments are responsible in factories and other industrial establishments. In respect of major ports, State Governments have appointed officers of the Central Industrial Machinery as Inspector for enforcing the Act.
Penal provisions
In respect of any of the contravention to the provisions of the Act like unauthorized deductions, delayed payments etc, the Act provides for various penal provisions against defaulting employer.
From India, Gurgaon
22Background
A tripartite Committee Viz.,"The Committee on Fair Wage" was set up in 1948 to provide guidelines for wage structures in the country. The report of this Committee was a major landmark in the history of formulation of wage policy in India. Its recommendations set out the key concepts of the `living wage', "minimum wages" and "fair wage" besides setting out guidelines for wage fixation. Article 39 states that the State shall, in particular, direct its policy towards securing (a) that the citizen, men and women equally shall have the right to an adequate livelihood and (b) that there is equal pay for equal work for both men and women. Article 43 states that the State shall endeavour, by suitable legislation or economic organisation or in any other way, to give all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure, and social and cultural opportunities.
Enactment of the Minimum Wages Act
Historical Backdrop
* The initiative started with the resolution placed by one Shri K.G.R.Choudhary in
1920 for setting up Boards for determination of minimum wages in each industry.
* The International Labour Conference adopted in 1928 Convention No.26 and
Recommendation No. 30 relating to wage fixing machinery in trades or parts of trades.
* On the recommendation of the Standing Labour Committee and Indian Labour
Conference, a Labour Investigation Committee was appointed in 1943 to investigate into the question of wages and other matters like housing, social conditions and employment.
* A draft bill was considered by the Indian Labour Conference in 1945.
* The 8th meeting of the Standing Labour Committee recommended in 1946 to
enact a separate legislation for the unorganised sector including working hours,
minimum wages and paid holidays.
* A Minimum Wages Bill was introduced in the Central Legislative Assembly on
11.4.46 to provide for fixation of minimum wages in certain employments. It was
passed in 1946 and came into force with effect from 15.3.48. Under the Act, Central and State Governments are appropriate Governments to
(a) notify scheduled employment
(b) fix/revise minimum wages
The Act contains list of all these employments for which minimum wages are to be fixed by the appropriate Governments. There are two parts of the Schedule. Part I has non-agricultural employments whereas Part-II relates to employment in agriculture.
Criteria for notification of scheduled employment
The appropriate Government fixes the minimum wage in respect of only those
scheduled employments where the number of employees is 1000 or more.
Fixation/revision of minimum wages Norms
The norms include those which were recommended by the Indian Labour Conference in its session held in 1957.
(i) 3 consumption units for one earner.
(ii) Minimum food requirements of 2700 calories per average Indian adult.
(iii) Clothing requirements of 72 yards per annum per family.
(iv) Rent corresponding to the minimum area provided for under Government's
Industrial Housing Scheme.
(v) Fuel, lighting and other miscellaneous items of expenditure to constitute 20%
of the total Minimum Wages.
Other parameters
(i) "Children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. should further constitute 25% of the total minimum wage." This judgment was delivered by the Supreme Court of India in 1991 in the case of Reptakos Brett and Co.Vs.its workmen.
(ii) Local conditions and other factors influencing the wage rate.
Methods for fixation/revision of minimum wages Fixation
Section 3 empowers appropriate Government to fix the minimum rates of wages
in the scheduled employments.
Revision
Revise the Minimum rates at an appropriate interval not exceeding five years.
Procedure for Fixation/Revision
In Section 5 of the Minimum Wages Act, 1948, two methods have been provided for fixation/revision of minimum wages. They are Committee method and Notification method.
Committee Method
Under this method, committees and sub-committees are set up by the appropriate Governments to hold enquiries and make recommendations with regard to fixation and revision of minimum wages, as the case may be.
Notification method
In this method, Government proposals are published in the Official Gazette for information of the persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals will be taken into consideration.
After considering advice of the Committees/Sub-committees and all the representations received by the specified date in Notification method, the appropriate Government shall, by notification in the Official Gazette, fix/revise the minimum wage in respect of the concerned scheduled employment and it shall come into force on expiry of three months from the date of its issue.
Variable Dearness Allowance (VDA)
It was recommended in the Labour Ministers' Conference held in 1988, to evolve a mechanism to protect wages against inflation by linking it to rise in the Consumer Price Index. The Variable Dearness Allowance came into being in the year 1991. The allowance is revised twice a year, once on 1st April and then on 1st October. In the State Sphere, 26 States/Union Territories have provisions for Variable Dearness Allowance, at present.
Enforcement Machinery
The enforcement of the provisions of the Minimum Wages Act in the Central Sphere is secured through the officers of Central Industrial Relations Machinery. In so far as State Sphere is concerned, the enforcement is the responsibility of the respective State Government/Union Territory.
National Wage Policy
Though it is desirable to have a National Wage Policy it is difficult to conceive a concept of the same. The National Wage Policy has been discussed on many occasions in different fora. Because fixation of wages depends on a number of criteria like local conditions, cost of living and paying capacity also varies from State to State and from industry to industry, it would be difficult to maintain uniformity in wages. The Indian Labour Conference, held in November, 1985 expressed the following views-
Till such time a national wage is feasible, it would be desirable to have regional minimum wages in regard to which the Central Government may lay down the guidelines. The Minimum Wages should be revised at regular periodicity and should be linked with rise in the cost of living
Accordingly, the Government issued guidelines in July, 87 for setting up of Regional Minimum Wages Advisory Committees. These Committees renamed subsequently as Regional Labour Ministers Conference, made a number of recommendations which include reduction in disparities in minimum wages in different states of a region, setting up of inter-state Coordination Council, consultation with neighbouring States while fixing/revising minimum wages etc.
Regional committees to reduce disparities in wages
There is disparity in rates of minimum wags in various regions of the country. This is due to differences in socio-economic and agro-climatic conditions, prices of essential commodities, paying capacity, productivity and local conditions influencing the wage rate. The regional disparity in minimum wages is also attributed to the fact that both the Central and State Governments are the appropriate Government to fix, revise and enforce minimum wages in scheduled employments in their respective jurisdictions under the Act . To bring uniformity in the minimum wages of scheduled employments, the Union Government has requested the States to form regional Committees. At present there are five Regional Minimum Wages Advisory Committees in the country which are as under:-
Region States/UTs covered
Eastern Region West Bengal, Orissa, Bihar, Jharkhand and Andaman & Nicobar Islands.
North Eastern Region Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Sikkim, Nagaland and Tripura.
Southern Region Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry and Lakshadwadeep.
Northern Region Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Haryana, Uttar Pradesh, Uttranchal, Delhi and Chandigarh.
Western Region Maharashtra, Gujarat, Goa, Madhya Pradesh, Chhattisgarh, Dadra & Nagar Haveli and Daman & Diu.
The meeting of the Regional Committee on Minimum Wages for the these Regions are being held from time to time.
National Floor Level Minimum Wage
In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, concept of National Floor Level Minimum Wage was mooted on the basis of the recommendations of the National Commission on Rural Labour (NCRL) in 1991. Keeping in view the recommendation of NCRL and subsequent rises in price indices, the National Floor Level Minimum Wage was fixed at Rs.35/- per day in 1996.
The Central Government raised the national floor level minimum wage to Rs.40/- per day in 1998 and further to Rs.45/- w.e.f. 01.12.1999, and Rs. 50/- per day w.e.f. 1.9.2002 keeping in view the rise in consumer price index.
Based on the norms suggested by the Working Group and its acceptance by the Central Advisory Board subsequently in its meeting held on 19.12.2003, national floor level minimum wage has last been revised upwards to Rs. 66/- per day with effect from 1.02.2004. The national floor level minimum wage, however, has no statutory backing. The State Governments are persuaded to fix minimum wages such that in none of the scheduled employments, the minimum wage is less than National floor level minimum wage. This method has helped in reducing disparity among different rates of minimum wages to some extent. To sum up, effective implementation of the Minimum Wages Act, 1948, which primarily falls in the State sphere, is assiduously pursued by Ministry of Labour and Employment through discussion, writing letters, personal interaction and visits to States. The State Governments are regularly asked to fix and revise minimum wages
in scheduled employments to be at least at par with national floor level minimum wage of Rs. 66 per day.
SCHEDULED EMPLOYMENTS FOR WHICH CENTRAL GOVERNMENT HAS FIXED MINIMUM WAGES UNDER THE MINIMUM WAGES ACT, 1948
S. No Name of Employment Minimum Wages per day (in Rs.)
1 2 3
1 Agriculture 107.78
2 Construction/Maintenance of Roads and Building Operations. 67.43
3 Maintenance of buildings 67.43
4. Construction and Maintenance of Runways. 67.43
5. Gypsum mines. 67.43
6. Barytes mines. 67.43
7. Bauxite mines. 67.43
8. Manganese mines. 67.43
9. China Clay mines. 67.43
10 Kyanite mines. 67.43
11 Copper mines. 67.43
12 Clay mines. 67.43
13 Stone mines. 67.43
14 White Clay mines. 67.43
15 Ochre mines 67.43
16 Fire Clay mines. 67.43
17 Steatite (Soapstone and Talc) Mines. 67.43
18 Asbestos mines. 67.43
19 Chromite mines. 67.43
20 Quartzite Mines 67.43
21 Quartz mines 67.43
22 Silica mines. 67.43
23 Magnesite Mines 67.43
24 Graphite mines. 67.43
25 Felspar mines. 67.43
26 Red oxide mines. 67.43
27 Laterite mines. 67.43
28 Dolomite mines. 67.43
29 Iron Ore mines. 67.43
30 Granite mines. 67.43
31 Wolfram mines. 67.43
32 Magnetite mines. 67.43
33 Rock phosphate mines. 67.43
34 Hematite mines. 67.43
35 Marble and Calcite Mines. 67.43
36 Uranium mines. 67.43
37 Mica mines. 67.43
38 Employment in Lignite Mines 67.43
39 Employment in Gravel Mines 67.43
40 Employment in the Slate Mines 67.43
41 Employment in laying down of underground electric, wireless, radio, television, telephone, telegraph and overseas communication cables and similar other underground cabling, electric lines water supply lines and sewerage pipe lines 67.43
42 Loading, Unloading in Railways Goods Shed 67.43
43 Ash Pit Cleaning in Railways 67.43
44 Stone Breaking and Stone Crushing 87.24
45 Security Services* 70.00
46 Sweeping and Cleaning Not yet fixed
* Rate as per draft Notification
PAYMENT OF WAGES ACT, 1936
Brief background
The Payment of Wages Act, 1936
The Payment of Wages Act, 1936 was enacted to regulate payment of wages to workers employed in Industries and to ensure a speedy and effective remedy to them against illegal deductions and/or unjustified delay caused in paying wages to them. The existing wage ceiling under Payment of Wages Act, 1936, was fixed at Rs. 1600/- pm in 1982. With a view to enhance the wage ceiling to Rs. 6500/- p.m. for applicability of the Act, to empower the Central Government to further increase the ceiling in future by way of notification and to enhance the penal provisions etc., the Payment of Wages (Amendment) Act, 2005, which was passed by both Houses of Parliament, has been notified on 6.9.2005 as an Act 41 of 2005 by the Ministry of Law & Justice. Subsequently, the Ministry of Labour & Employment has issued the Notification No. SO 1577(E) to make the Payment of Wages (Amendment) Act, 2005 effective from the 9th November 2005.
Enforcement Machinery
The Central Government is responsible for the administration of the Act in railways, mines, oilfields and air transport services, while State Governments are responsible in factories and other industrial establishments. In respect of major ports, State Governments have appointed officers of the Central Industrial Machinery as Inspector for enforcing the Act.
Penal provisions
In respect of any of the contravention to the provisions of the Act like unauthorized deductions, delayed payments etc, the Act provides for various penal provisions against defaulting employer.
From India, Gurgaon
hai, very useful information. could i get the payment of wages act (with new amendmends) . awaiting your reply regards kavitha
From India, Bangalore
From India, Bangalore
hello Kavitha,
i am posting the payment of wages act (with new amendments). Hope it will be useful.
Regards
Sankuraj
************************************************** *************
THE PAYMENT OF WAGES (AMENDMENT) ACT, 2005
NO. 41 OF 2005
[5th September, 2005.]
An Act further to amend the Payment of Wages Act, 1936.
BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:-
1. Short title and commencement.
(1) This Act may be called the Payment of Wages (Amendment) Act, 2005.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Amendment of section 1.
2. Amendment of section 1.
In section 1 of the Payment of Wages Act, 1936 (4 of 1936) (hereinafter referred to as the principal Act), for sub-section (6), the following sub-section shall be substituted, namely:-
"(6) This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.".
Substitution of references to certain expressions by other expression
3. Throughout the principal Act, unless otherwise expressly provided for, the expressions "the Central Government or a State Government" and "the State Government", wherever they occur, the expression "appropriate Government" shall be substituted and such other consequential amendments as the rules of grammar may require shall also be made.
4. Amendment of section 2.
In section 2 of the principal Act
(a) clauses (i), (ia) and (ib) shall be re-numbered as clauses (ia), (ib) and (ic), respectively, and before clause (ia) as so re-numbered, the following clause shall be inserted, namely
'(i) "appropriate Government" means, in relation to railways, air transport services, mines and oilfields, the Central Government and, in relation to all other cases, the State Government;'
(b) for clause (v), the following clause shall be substituted, namely
(v) " railway administration" has the meaning assigned to it in clause (32) of section 2 of the Railways Act, 1989 (24 of 1989);'.
Top
Substitution of new section for section 3
5. For section 3 of the principal Act, the following section shall be substituted, namely
"3. Responsibility for payment of wages
(1) Every employer shall be responsible for the payment of all wages required to be paid under this Act to persons employed by him and in case of persons employed
(a) in factories, if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;
(c) upon railways (other than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned;
(d) in the case of contractor, a person designated by such contractor who is directly under his charge; and
(e) in any other case, a person designated by the employer as a person responsible for complying with the provisions of the Act, the person so named, the person responsible to the employer, the person so nominated or the person so designated, as the case may be, shall be responsible for such payment.
(2) Notwithstanding anything contained in sub-section (1), it shall be the responsibility of the employer to make payment of all wages required to be made under this Act in case the contractor or the person designated by the employer fails to make such payment."
6. Amendment of section 7.
In section 7 of the principal Act
(a) in sub-section (1), for the words, brackets and figures "sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)", the words and figures "the Railways Act, 1989 (24 of 1989)" shall be substituted;
(b) in sub-section (2), in clause (i), for the words, figures and letter "in section 58A of the Indian Income-tax Act, 1922 (11 of 1922)", the words, brackets and figures "in clause 38 of section 2 of the Income-tax Act, 1961 (43 of 1961)" shall be substituted;
(c) in sub-section (4), for the words and figures "the Indian Railways Act, 1890 (9 of 1890)", the words and figures "the Railways Act, 1989 (24 of 1989)" shall be substituted.
7. Amendment of section 8.
In section 8 of the principal Act, in sub-section (6), for the words "sixty days", the words "ninety days" shall be substituted.
Top
Amendment of section 15
8. In section 15 of the principal Act
(i) for sub-section (1), the following sub-section shall be substituted, namely
"(1) The appropriate Government may, by notification in the Official Gazette, appoint
(a) any Commissioner for Workmen's Compensation; or
(b) any officer of the Central Government exercising functions as
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years' experience; or
(c) any officer of the State Government not below the rank of Assistant Labour Commissioner with at least two years' experience; or
(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State; or
(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate, as the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, of persons employed or paid in that area, including all matters incidental to such claims:
Provided that where the appropriate Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.";
(ii) for sub-section (3), the following sub-section shall be substituted, namely
"(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further enquiry, if any, as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and not exceeding three thousand rupees but not less than one thousand five hundred rupees in the latter, and even if the amount deducted or delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding two thousand rupees:
Provided that a claim under this Act shall be disposed of as far as practicable within a period of three months from the date of registration of the claim by the authority:
Provided further that the period of three months may be extended if both parties to the dispute agree for any bona fide reason to be recorded by the authority that the said period of three months may be extended to such period as may be necessary to dispose of the application in a just manner:
Provided also that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to-
(a) a bona fide error or bona fide dispute as to the amount payable to the employed person; or
(b) the occurrence of an emergency, or the existence of exceptional circumstances, the person responsible for the payment of the wages was unable, in spite of exercising reasonable diligence; or
(c) the failure of the employed person to apply for or accept payment."
(iii) in sub-section (4), for the words "not exceeding fifty rupees" wherever they occur, the words "not exceeding three hundred seventy-five rupees" shall be substituted.
Top
Amendment of section 20
9. In section 20 of the principal Act
(a) in sub-section (1), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(b) in sub-section (2), for the words "with fine which may extend to five hundred rupees", the words "with fine which may extend to three thousand seven hundred fifty rupees" shall be substituted;
(c) after sub-section (2), the following sub-section shall be inserted, namely
"(2A) Whoever being required to nominate or designate a person under section 3 fails to do so, such person shall be punishable with fine which may extend to three thousand rupees.";
(d) in sub-section (3), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(e) in sub-section (4), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(f) in sub-section (5), for the words "with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees", the words "with fine which shall not be less than three thousand seven hundred fifty rupees but which may extend to twenty-two thousand five hundred rupees" shall be substituted;
(g) in sub-section (6), for the words "one hundred rupees", the words "seven hundred fifty rupees" shall be substituted.
10. Substitution of new section for section 24.
For section 24 of the principal Act, the following section shall be substituted, namely
"24.Delegation of powers.-The appropriate Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be also exercisable
(a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification;
(b) where the appropriate Government is a State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.".
11. Amendment of section 26.
In section 26 of the principal Act
(a) in sub-section (4), for the words "which may extend to two hundred rupees", the words "which shall not be less than seven hundred fifty rupees but which may extend to one thousand five hundred rupees" shall be substituted;
(b) after sub-section (6), the following sub-section shall be inserted, namely
"(7) All rules made under this section by the State Government shall, as soon as possible after they are made, be laid before the State Legislature."
From India, Gurgaon
i am posting the payment of wages act (with new amendments). Hope it will be useful.
Regards
Sankuraj
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THE PAYMENT OF WAGES (AMENDMENT) ACT, 2005
NO. 41 OF 2005
[5th September, 2005.]
An Act further to amend the Payment of Wages Act, 1936.
BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:-
1. Short title and commencement.
(1) This Act may be called the Payment of Wages (Amendment) Act, 2005.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Amendment of section 1.
2. Amendment of section 1.
In section 1 of the Payment of Wages Act, 1936 (4 of 1936) (hereinafter referred to as the principal Act), for sub-section (6), the following sub-section shall be substituted, namely:-
"(6) This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.".
Substitution of references to certain expressions by other expression
3. Throughout the principal Act, unless otherwise expressly provided for, the expressions "the Central Government or a State Government" and "the State Government", wherever they occur, the expression "appropriate Government" shall be substituted and such other consequential amendments as the rules of grammar may require shall also be made.
4. Amendment of section 2.
In section 2 of the principal Act
(a) clauses (i), (ia) and (ib) shall be re-numbered as clauses (ia), (ib) and (ic), respectively, and before clause (ia) as so re-numbered, the following clause shall be inserted, namely
'(i) "appropriate Government" means, in relation to railways, air transport services, mines and oilfields, the Central Government and, in relation to all other cases, the State Government;'
(b) for clause (v), the following clause shall be substituted, namely
(v) " railway administration" has the meaning assigned to it in clause (32) of section 2 of the Railways Act, 1989 (24 of 1989);'.
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Substitution of new section for section 3
5. For section 3 of the principal Act, the following section shall be substituted, namely
"3. Responsibility for payment of wages
(1) Every employer shall be responsible for the payment of all wages required to be paid under this Act to persons employed by him and in case of persons employed
(a) in factories, if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;
(c) upon railways (other than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned;
(d) in the case of contractor, a person designated by such contractor who is directly under his charge; and
(e) in any other case, a person designated by the employer as a person responsible for complying with the provisions of the Act, the person so named, the person responsible to the employer, the person so nominated or the person so designated, as the case may be, shall be responsible for such payment.
(2) Notwithstanding anything contained in sub-section (1), it shall be the responsibility of the employer to make payment of all wages required to be made under this Act in case the contractor or the person designated by the employer fails to make such payment."
6. Amendment of section 7.
In section 7 of the principal Act
(a) in sub-section (1), for the words, brackets and figures "sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)", the words and figures "the Railways Act, 1989 (24 of 1989)" shall be substituted;
(b) in sub-section (2), in clause (i), for the words, figures and letter "in section 58A of the Indian Income-tax Act, 1922 (11 of 1922)", the words, brackets and figures "in clause 38 of section 2 of the Income-tax Act, 1961 (43 of 1961)" shall be substituted;
(c) in sub-section (4), for the words and figures "the Indian Railways Act, 1890 (9 of 1890)", the words and figures "the Railways Act, 1989 (24 of 1989)" shall be substituted.
7. Amendment of section 8.
In section 8 of the principal Act, in sub-section (6), for the words "sixty days", the words "ninety days" shall be substituted.
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Amendment of section 15
8. In section 15 of the principal Act
(i) for sub-section (1), the following sub-section shall be substituted, namely
"(1) The appropriate Government may, by notification in the Official Gazette, appoint
(a) any Commissioner for Workmen's Compensation; or
(b) any officer of the Central Government exercising functions as
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years' experience; or
(c) any officer of the State Government not below the rank of Assistant Labour Commissioner with at least two years' experience; or
(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State; or
(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate, as the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, of persons employed or paid in that area, including all matters incidental to such claims:
Provided that where the appropriate Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.";
(ii) for sub-section (3), the following sub-section shall be substituted, namely
"(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further enquiry, if any, as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and not exceeding three thousand rupees but not less than one thousand five hundred rupees in the latter, and even if the amount deducted or delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding two thousand rupees:
Provided that a claim under this Act shall be disposed of as far as practicable within a period of three months from the date of registration of the claim by the authority:
Provided further that the period of three months may be extended if both parties to the dispute agree for any bona fide reason to be recorded by the authority that the said period of three months may be extended to such period as may be necessary to dispose of the application in a just manner:
Provided also that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to-
(a) a bona fide error or bona fide dispute as to the amount payable to the employed person; or
(b) the occurrence of an emergency, or the existence of exceptional circumstances, the person responsible for the payment of the wages was unable, in spite of exercising reasonable diligence; or
(c) the failure of the employed person to apply for or accept payment."
(iii) in sub-section (4), for the words "not exceeding fifty rupees" wherever they occur, the words "not exceeding three hundred seventy-five rupees" shall be substituted.
Top
Amendment of section 20
9. In section 20 of the principal Act
(a) in sub-section (1), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(b) in sub-section (2), for the words "with fine which may extend to five hundred rupees", the words "with fine which may extend to three thousand seven hundred fifty rupees" shall be substituted;
(c) after sub-section (2), the following sub-section shall be inserted, namely
"(2A) Whoever being required to nominate or designate a person under section 3 fails to do so, such person shall be punishable with fine which may extend to three thousand rupees.";
(d) in sub-section (3), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(e) in sub-section (4), for the words "with fine which shall not be less than two hundred rupees but which may extend to one thousand rupees", the words "with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees" shall be substituted;
(f) in sub-section (5), for the words "with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees", the words "with fine which shall not be less than three thousand seven hundred fifty rupees but which may extend to twenty-two thousand five hundred rupees" shall be substituted;
(g) in sub-section (6), for the words "one hundred rupees", the words "seven hundred fifty rupees" shall be substituted.
10. Substitution of new section for section 24.
For section 24 of the principal Act, the following section shall be substituted, namely
"24.Delegation of powers.-The appropriate Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be also exercisable
(a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification;
(b) where the appropriate Government is a State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.".
11. Amendment of section 26.
In section 26 of the principal Act
(a) in sub-section (4), for the words "which may extend to two hundred rupees", the words "which shall not be less than seven hundred fifty rupees but which may extend to one thousand five hundred rupees" shall be substituted;
(b) after sub-section (6), the following sub-section shall be inserted, namely
"(7) All rules made under this section by the State Government shall, as soon as possible after they are made, be laid before the State Legislature."
From India, Gurgaon
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