Tuesday, 21 May 2013

FIXATION/ REVISION OF MINIMUM WAGES- THE MINIMUM WAGES ACT 1948

According to Section 3(2), the minimum wages can be fixed in accordance with:

1. TIME WORK - total time spent
2. PIECE WORK- for a particular piece of work to be done
3. GUARANTEED TIME RATE: when amount is fixed on per hour bases
4. OVERTIME RATE- if any overtime is done by a worker he is paid accordingly.

According to section 3(3) of The Minimum Wages Act, 1948 there are two methods of fixing the minimum wage-

1. COMMITTEE METHOD : in this method, government appoints committees and sub-committees which gives away the advise to the particular government and shall fix or revise the minimum rates of wages.

2. NOTIFICATION METHOD : Government shall, by notification, publish proposals for minimum wages and give a date not less than 2 months from the date of notification for revision of minimum rate of wages.


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