48  The Minimum Wages Act 1948: Object, Constitutional Foundation, Definitions, Scheduled Employments, Fixation and Revision (Committee and Notification Methods), Advisory Boards, Working Hours and Overtime, Penalties, Reptakos Brett (1992) and the Code on Wages 2019

48.1 A Floor Beneath Which No Wage Should Fall

The Minimum Wages Act 1948 was passed in the first year of Indian Independence — a statement that the new Republic would not tolerate sweated labour. The Act creates a floor below which a worker’s wage cannot legally fall in scheduled employments, irrespective of the worker’s “agreement” to a lower rate. The Supreme Court has held that paying below the minimum wage amounts to forced labour under Article 23 of the Constitution. This chapter pulls together the Act’s framework — definitions, scheduled employments, fixation procedures, working hours, payment, claim and penalty provisions — and notes how the Code on Wages 2019 universalises the minimum wage to all employments.

48.2 1 · Object, Extent and Commencement

TipObject and Scope
Aspect Detail
Year 1948 (Act 11 of 1948)
Commencement 15 March 1948
Object To provide for fixing minimum rates of wages in certain employments
Extent The whole of India
Successor Code on Wages 2019

The Act gives effect to the constitutional commitments under Article 23 (no forced labour), Article 39(a) (right to adequate means of livelihood) and Article 43 (living wage and decent standard of life).

48.3 2 · Key Definitions — Section 2

TipSection 2 — Important Definitions
Term Section Substance
Wages 2(h) All remuneration capable of being expressed in money payable to a person employed in respect of his employment if the terms of the contract were fulfilled — includes house rent allowance; excludes value of accommodation, light, water, medical, PF / pension contributions, travel allowance, ex-gratia
Employee 2(i) A person employed for hire or reward in any scheduled employment in respect of which minimum rates of wages have been fixed
Employer 2(e) Any person who employs (directly or through another) one or more employees in any scheduled employment
Scheduled employment 2(g) An employment specified in the Schedule, or any process or branch of work forming part of such employment
Cost of living index number 2(d) The official index for the area / employment
Adolescent / adult / child 2(a), (aa), (bb) Age-based

48.4 3 · The Schedule — Scheduled Employments

The Schedule originally listed 13 employments (with separate Part I for non-agricultural and Part II for agricultural). Over time, more than 45 employments have been added by various states. Notable entries include:

TipScheduled Employments — Indicative
Part I (non-agricultural) Part II (agriculture)
Woollen carpet making and shawl weaving Agriculture
Rice, flour and dal mills Plantation work
Tobacco manufactories Forestry
Plantation industries Cattle-rearing
Oil mills
Local authority
Road construction or building operations
Stone-breaking or stone-crushing
Lac manufactories
Mica works
Public motor transport
Tanneries and leather manufactories
Gypsum and barytes mines (added later)

48.4.1 Power to Add Employments — Section 27

The appropriate government may add any employment to the Schedule by giving at least three months’ notice of its intention by notification — after which it is added by another notification. Once added, it is treated like other scheduled employments.

NotePYQ trap — Scheduled employment only

Under the original Minimum Wages Act 1948, minimum wages are fixable only in scheduled employments. The Code on Wages 2019 removes this limitation — minimum wages now apply to all employments universally.

48.5 4 · Fixation and Revision of Minimum Wages — Sections 3 to 5

48.5.1 Section 3 — Power to Fix and Revise

The appropriate government must:

  • Fix the minimum rate of wages for scheduled employments.
  • Review at intervals not exceeding five years and revise as necessary.
  • Fix wages for different time periods (hour, day, month) and different work classifications.

48.5.2 Types of Minimum Wage — Section 3(2)

TipComponents of a Minimum Rate
Component Description
Basic rate + special allowance The two-tier structure where DA varies with the cost of living
Basic rate with cash value of concessions Where essential commodities are supplied at subsidised rate
All-inclusive rate A single consolidated rate

48.5.3 Section 4 — Cost-of-Living Allowance

Where minimum wages are fixed under Section 3, they may include:

  • A basic rate plus a dearness allowance linked to the cost-of-living index.
  • A basic rate plus the cash equivalent of essential commodities supplied at a subsidised rate.

48.5.4 Section 5 — Two Procedures for Fixation

The Act prescribes two procedures by which minimum wages may be fixed or revised — and the choice between them is left to the appropriate government.

TipSection 5 — Two Methods of Fixation
Method Description
Committee Method (Section 5(1)(a)) Government appoints Committees and Sub-Committees to hold inquiries and advise; after considering the advice, the government fixes the wage by notification
Notification Method (Section 5(1)(b)) Government publishes a draft notification of its proposals, inviting representations within at least two months; after considering representations and consulting the Advisory Board, it fixes the wage by final notification
NotePYQ anchor — Two methods of fixation

Committee method = tripartite inquiry first; Notification method = draft published, representations invited. The committee method is preferred for first-time fixation; the notification method for routine revisions. NTA stems test the distinction.

48.6 5 · Advisory Bodies — Sections 7 to 9

TipAdvisory Boards
Body Section Function
Advisory Board 7 Coordinates the work of committees and sub-committees and advises the appropriate government on matters arising out of the Act
Central Advisory Board 8 Advises central and state governments on fixation / revision of minimum wages and coordinates state-level work
Committees and Sub-Committees 9 Constituted by the appropriate government for the purpose of Section 5(1)(a); equal representatives of employers and employees + independent persons appointed by government; chair is one of the independent members

The independent member as chair ensures even-handedness in disputes between the employer and employee groups.

48.7 6 · Payment of Minimum Wages — Sections 11 to 16

TipPayment Provisions
Section Provision
11 Wages in cash — minimum wages payable in cash; partial payment in kind allowed only by notification
12 Payment of minimum rates of wages — employer cannot pay less than the notified minimum
13 Fixation of hours for a normal working day — generally 9 hours; rest interval; weekly day of rest
14 Overtime — payable at the rate fixed by the appropriate government (typically twice the ordinary rate)
15 Wages of workman who works for less than the normal day
16 Wages for two or more classes of work

48.7.1 Section 13 — Working Hours

TipNormal Working Day under Section 13
Element Provision
Normal working day 9 hours (adult)
Rest interval At least half an hour after 5 hours of continuous work
Total spread-over Not more than 12 hours
Weekly day of rest Compulsory — wages payable for the rest day
Compensatory holiday For work on the rest day

48.7.2 Section 17 — Minimum Time-Rate for Piece Work

Where an employee in a scheduled employment is on piece rates and the minimum wages are fixed only for time work, the employer must pay wages at not less than the minimum time rate.

48.7.3 Section 18 — Maintenance of Registers and Records

The employer must maintain:

  • Register of wages.
  • Register of overtime.
  • Register of fines and deductions.
  • Wage slips.
  • Attendance and muster register.

48.8 7 · Claims, Inspection and Enforcement — Sections 19 to 22

TipClaims and Enforcement
Section Provision
19 Inspectors appointed by the appropriate government — powers of entry, examination, sampling, seizure
20 Claims — by employee, or any official of registered trade union acting on his behalf, before the authority appointed under the Act within six months from the date the wages became payable; authority can grant up to 10 times the unpaid amount as compensation
20A Single application in respect of a number of employees
21 Limitation — claims to be made within 6 months (extendable on sufficient cause)
22 Penalties for paying less than the minimum wage or for contravening rules

48.8.1 Section 22 — Penalties

TipPenalties under Section 22
Offence Punishment
Employer paying less than the minimum wage Imprisonment up to 6 months or fine up to Rs 500, or both
Contravention of other provisions Fine up to Rs 500
Cognisance Only on inspector’s complaint with sanction of the appropriate government

The original penalties are modest; the Code on Wages 2019 substantially enhances them.

48.9 8 · Constitutional Backing — PUDR v. Union of India (1982)

The Supreme Court — in the Asiad Workers case, People’s Union for Democratic Rights v. Union of India (1982) — held that the payment of less than the prescribed minimum wage to any workman is a violation of Article 23 of the Constitution (prohibition of forced labour). Justice P. N. Bhagwati observed that any worker performing work for less than the minimum wage is providing labour involuntarily, and this is a form of begar prohibited by Article 23.

NotePYQ anchor — PUDR (1982) and Article 23

PUDR v. Union of India (1982)paying less than the minimum wage amounts to forced labour under Article 23 — is the most-tested constitutional anchor of the Minimum Wages Act. NTA stems frequently test this proposition.

48.10 9 · Six-Component Formula — Reptakos Brett (1992)

The 15th Indian Labour Conference (1957) at Nainital had laid down a five-component formula for the need-based minimum wage (covered in Topic 45). In Workmen v. Reptakos Brett & Co. Ltd. (1992), the Supreme Court added a sixth component25 % for children’s education, medical, recreation and provision for old age and marriage — bringing the formula closer to the living wage concept.

TipNeed-Based Minimum Wage — Six Components Post-Reptakos Brett
# Component
1 3 consumption units per family (Aykroyd)
2 2,700 calories per consumption unit per day
3 18 yards (later 72 yards / 66 metres) of clothing per family per year
4 Minimum government industrial-housing-scheme rent
5 20 % for fuel, lighting and miscellaneous
6 25 % for education, medical, recreation, old-age and marriage provision (Reptakos Brett 1992)

48.11 10 · Exemptions and Exclusions

  • Section 26 — Power of appropriate government to exempt certain factories or classes of employees from any or all provisions of the Act, by notification.
  • Section 22F — Bar of suits in respect of unpaid wages where the claims procedure under Section 20 applies.
  • Government may exempt disabled and trainee workers, and certain emergency employments, by notification.

48.12 11 · Position under the Code on Wages 2019

The Code on Wages 2019 consolidates the Minimum Wages Act 1948 along with the Payment of Wages Act 1936, Payment of Bonus Act 1965 and Equal Remuneration Act 1976.

TipMinimum Wages Act 1948 vs Code on Wages 2019
Provision 1948 Act Code on Wages 2019
Coverage Only scheduled employments Universal — all employments
Floor wage None National floor wage fixed by central government — state minimum wage cannot fall below it
“Wages” definition Wide; varies by statute Uniform definition with 50 % cap on excluded allowances
Fixation methods Committee and Notification Continued
Revision interval At least every 5 years Continued
Working hours / overtime Section 13 / 14 Continued
Equal remuneration Separate Act Integrated; gender-neutral; all genders
Inspector Inspector Inspector-cum-facilitator — advisory + enforcement
Penalties Modest (up to Rs 500) Substantially enhanced (up to Rs 1 lakh and imprisonment)

The national floor wage under the Code on Wages 2019 is the most significant innovation — it sets a baseline below which no state can notify a lower minimum wage. The central government fixes this floor wage after consultation with the Central Advisory Board.

48.13 12 · Significance and Critique

  • First Indian wage-floor statute — gave legal effect to the constitutional promise.
  • The PUDR case (1982) elevated the minimum wage from a statutory entitlement to a constitutional right under Article 23.
  • Critique:
    • Variation across states — historically very wide; only partly addressed by the floor wage.
    • Notification delay — five-year revision often not done on time.
    • Compliance — particularly poor in the unorganised sector.
    • Indexing — DA mechanisms vary.
    • Coverage — until 2019 limited to scheduled employments.
  • The Code on Wages 2019 addresses several of these gaps — universal coverage, national floor wage, uniform definition.

48.14 Practice Questions

Q 01 Year Easy

The Minimum Wages Act was enacted in:

  • A1936
  • B1948
  • C1965
  • D1976
View solution
Correct Option: B
15 March 1948.
Q 02 Revision Medium

Under Section 3, minimum wages must be reviewed at intervals not exceeding:

  • AOne year
  • BTwo years
  • CFive years
  • DTen years
View solution
Correct Option: C
Five years.
Q 03 Two methods Medium

The two procedures for fixation of minimum wages under Section 5 are:

  • ACommittee and Notification methods
  • BStatutory and Voluntary
  • CCentral and State
  • DPublic and Private
View solution
Correct Option: A
Committee and Notification methods.
Q 04 PUDR Hard

PUDR v. Union of India (1982) held that paying below the minimum wage amounts to:

  • AA breach of contract only
  • BForced labour under Article 23
  • CA civil dispute
  • DPermissible flexibility
View solution
Correct Option: B
Article 23 begar — forced labour.
Q 05 Working day Medium

Under Section 13, the normal working day for an adult is generally:

  • A8 hours
  • B9 hours
  • C10 hours
  • D12 hours
View solution
Correct Option: B
9 hours per Section 13.
Q 06 Reptakos Brett Hard

Reptakos Brett v. Its Workmen (1992) added a sixth component of how much for education, medical, recreation, old-age and marriage?

  • A10 %
  • B20 %
  • C25 %
  • D50 %
View solution
Correct Option: C
25 % — sixth component added by Reptakos Brett.
Q 07 Claim limitation Medium

A claim under Section 20 must be made within:

  • A15 days
  • B30 days
  • C3 months
  • D6 months
View solution
Correct Option: D
6 months (extendable on sufficient cause).
Q 08 Compensation Hard

Under Section 20, the authority can award compensation up to how many times the unpaid amount?

  • A2 times
  • B5 times
  • C10 times
  • D100 times
View solution
Correct Option: C
Up to 10 times the unpaid amount.
Q 09 Schedule Medium

Under the original Minimum Wages Act 1948, the Schedule has:

  • AOne Part
  • BTwo Parts — non-agricultural and agricultural
  • CThree Parts
  • DFive Parts
View solution
Correct Option: B
Part I non-agricultural; Part II agricultural.
Q 10 Match Hard

Match the section with its content:

(i) Section 3 (a) Two procedures for fixation
(ii) Section 5 (b) Power to fix and revise
(iii) Section 13 (c) Claims
(iv) Section 20 (d) Working day
  • A(i)-(b), (ii)-(a), (iii)-(d), (iv)-(c)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
  • D(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
View solution
Correct Option: A
3-fix/revise; 5-two methods; 13-working day; 20-claims.
Q 11 Code Universal Medium

The most significant change brought by the Code on Wages 2019 to the minimum-wage regime is:

  • AReducing minimum wages
  • BUniversal coverage and national floor wage
  • CAbolishing minimum wages
  • DRestricting them to factories
View solution
Correct Option: B
Universal applicability + national floor wage.
Q 12 Cash payment Easy

Under Section 11, minimum wages are payable:

  • AIn cash
  • BIn kind only
  • CIn shares
  • DBy cheque only
View solution
Correct Option: A
In cash; partial in kind only with notification.
Q 13 Advisory Board Medium

The Advisory Board is constituted under:

  • ASection 3
  • BSection 5
  • CSection 7
  • DSection 20
View solution
Correct Option: C
Section 7 — Advisory Board; Section 8 — Central Advisory Board.
Q 14 Section 27 Hard

Under Section 27, an employment may be added to the Schedule after how many months' notice of intention?

  • AOne month
  • BThree months
  • CSix months
  • DOne year
View solution
Correct Option: B
Three months' notice.
Q 15 Overtime Medium

Overtime under Section 14 is normally paid at:

  • AOnce the ordinary rate
  • BTwice the ordinary rate
  • CHalf the ordinary rate
  • DNo overtime payable
View solution
Correct Option: B
Twice the ordinary rate.
Q 16 Penalty Medium

Penalty under Section 22 of the original Act for paying below the minimum wage is up to:

  • A1 month / Rs 100
  • B6 months / Rs 500
  • C2 years / Rs 1 lakh
  • D5 years / Rs 5 lakh
View solution
Correct Option: B
Original Act — 6 months / Rs 500; Code on Wages enhanced.
Q 17 Spread-over Hard

The maximum spread-over of work hours under Section 13 is:

  • A9 hours
  • B10.5 hours
  • C12 hours
  • D14 hours
View solution
Correct Option: C
12 hours spread-over.
Q 18 Scheduled employment Medium

Under the original Minimum Wages Act 1948, minimum wages are fixable only in:

  • AScheduled employments
  • BAll employments universally
  • CFactories only
  • DMines only
View solution
Correct Option: A
Scheduled employments only — universal under Code 2019.
Q 19 Reservation prior fixation Hard

In the Notification Method under Section 5(1)(b), the period for representations is at least:

  • A15 days
  • BOne month
  • CTwo months
  • DSix months
View solution
Correct Option: C
At least two months for representations.
Q 20 Floor wage Medium

Under the Code on Wages 2019, a state's minimum wage:

  • AMay fall below the national floor wage
  • BCannot fall below the national floor wage
  • CIs determined by employers
  • DIs fixed by the union
View solution
Correct Option: B
National floor wage as baseline.

48.15 Quick Recall

ImportantQuick recall
  • Minimum Wages Act 1948 — in force 15 March 1948; gives effect to Articles 23, 39(a), 43.
  • Applies only to scheduled employments (Part I non-agricultural; Part II agricultural) — universal under Code on Wages 2019.
  • Section 3 — power to fix and revise; revision interval not exceeding 5 years.
  • Section 5 — Two procedures: Committee method (5(1)(a)) and Notification method (5(1)(b) — at least 2 months for representations).
  • Sections 7-9 — Advisory Board, Central Advisory Board, Committees; independent member chairs.
  • Section 11 — wages payable in cash (partial in kind only with notification).
  • Section 13 — normal working day 9 hours; rest break after 5 hours; spread-over 12 hours; weekly day of rest.
  • Section 14 — overtime at twice the ordinary rate.
  • Section 20claims before the prescribed authority within 6 months; compensation up to 10 times the unpaid amount.
  • Section 22 — penalty: 6 months / Rs 500 (original Act).
  • Section 27 — power to add employments to the Schedule with 3 months’ notice.
  • PUDR v. Union of India (1982) — paying below the minimum wage = forced labour under Article 23.
  • 15th ILC 1957 — 5-component need-based formula (3 consumption units, 2,700 calories, clothing, housing, 20 % misc.); Reptakos Brett (1992) added 6th component, 25 % for education, medical, recreation, old age, marriage.
  • Code on Wages 2019: universal coverage, national floor wage, uniform definition with 50 % cap on excluded allowances, inspector-cum-facilitator, enhanced penalties.