Chapter: 6.1 Fixing Of Minimum Rates Of Wages

Fixing Of Minimum Rates Of Wages

The Appropriate Government shall in the manner and hereinafter provide fixing the minimum rates of wages applicable to employees employed in an employment specified in part 1 or 2 of the schedule which the State Government may review at such intervals as it thinks fit. Such intervals should not exceed 5 years.

The minimum rates of wages are fixed in the following manner:
1) The appropriate Government may fix a minimum rate of wages for time work.
2) Minimum rates of wages for piece work.
3) A minimum rate to apply in substitution for the minimum rate which would otherwise be applicable in respect of overtime work done by the employees.

In fixing or revising wages under this section differing minimum rates of wages may be fixed for
a) Different scheduled employment.
b) Different classes of work for the same scheduled employment.
c) Adults, Adolescents, children and apprentices.
d) Different localities.

Minimum rates of wages may be fixed by one or more of the following wage periods namely by the hours, by the day, by the month. Under sections of the said Act, it is a definite indication that the basic wage is an integral part of the minimum wage. Section 4(1) postulates that the minimum rate fixed or revised by the Appropriate Government under Section 3 may constitute a basic rate of wages and a special allowance at the rate to be adjusted at such intervals, and in such manner, as the appropriate Government may direct to afford as merely as practical, with the variation in the cost of living index number applicable to such employees.

Example:

Basic Wage + Special Allowances* = Minimum Wage

• Special Allowance is based on Cost of Living Index which fluctuates according to the Govt. declarations.

This has been discussed in the following case :
Kan~ataka Film Chamber of Commerce, Bangalore V/s State of Karnatalca, 1986 LIC, Page 1890 Karnataka High Court.

• The Proceduce of Fixing and Rensing Minimum Wages

1) In fixing minimum rate of wages in respect of any scheduled employment for the first time under the Act in revising minimum rates of wages so fixed, the Appropriate Government shall appoint as many committees and sub-Committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be.
2) By notification in the Official Gazette published its proposal for the information of persons likely to be effected thereby and specify a date not less than 2 months from the date of notification on which the proposals will be taken into consideration.