Minimum Wages Act 1948: Objectives

What is Minimum Wages Act 1948

The foundational aim of the Minimum Wages under the Minimum Wages Act, 1948. This Act does not define the concept of minimum wages but empowers the Central Government as well as State Government to fix minimum wages from time to time. Wherever this Act applies, the payment of minimum wages is mandatory. In 1957, Indian Labour Conference elaborated the concept of fixation of minimum wages which were termed as need-based minimum wages. The Minimum Wages Act enables the Central and State Government to fix minimum rate of wages payable to employees in a selected number of sweated industries.

Minimum wages act 1948

Objectives of Minimum Wage Act

  1. To provide minimum wages for scheduled employment.
  2. To provide for maximum daily working hours, weekly rest and overtime.
  3. To promote the welfare of workers by fixing minimum rates of wages in certain industries where labour is not organised and sweated labour is most prevalent.
  4. To prevent exploitation of workers by ensuring that they are paid the minimum wages, which would provide for their subsistence and preserve their efficiency.

Short Title and Extent of Minimum Wages Act [Section 1]

  1. This Act may be called the Minimum Wages Act, 1948.
  2. It extends to the Whole of India.

Definitions Under Minimum Wages Act [Section 2]

  1. Adolescent [Section 2(a)]: It means a person who has completed his 14th year of age but has not completed his 18th year.
  2. Adult [Section (aa)]: Means a person who has completed his 18th year of age.
  3. Child [Section 2(bb)]: Child means a person who has not completed his fourteen year of age.
  4. Employer [Section 2(e)]: It means any person who employs directly or through another person or whether on behalf of himself or any other person, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this act.
  5. Minimum Rates of Wages [ Section 4(1)]: The Minimum Wages Act, 1948, under Section 4(1) deals with the minimum rates of wages. It provides that any minimum rates of wages fixed or revised by the Appropriate Government in respect of scheduled employments under Section 3.