CHAPTER 2. MINIMUM WAGES
5. Payment of minimum rate of wages.
No employer shall pay to any employee wages less than the minimum rate of wages
notified by the appropriate Government.
6. Fixation of minimum wages.
(1) Subject to section 9, the appropriate Government shall fix the minimum rate of wages payable to employees in accordance with the provisions of section 8.
(2) The appropriate Government shall fix a minimum rate of wages––
(a) for time work; or
(b) for piece work.
(3) Where employees are employed on piece work, the appropriate Government shall fix a minimum rate of wages for securing such employees a minimum rate of wages on a time work basis.
(4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely:––
(i) by the hour; or
(ii) by the day; or
(iii) by the month.
(5) Where the rates of wages are fixed by the hour or by the day or by the month, the
manner of calculating the wages shall be such, as may be prescribed by the Code on Wages Rules
(6) For the purpose of fixation of the minimum rate of wages, followings will be taken into account
Skill- Unskilled, Skilled, Semi-Skilled, Highly Skilled
Geographical Area
Both Skill and area
And possibly the condition of work- temperature or humidity or hazardous occupations, processes or underground work
(7) The number of minimum rates of wages referred to in sub-section (6) may, as far as
possible, be kept at a minimum by the respective appropriate Government.
7. Components of minimum wages.
(1) Any minimum rate of wages fixed or revised under sec 8 may consist of––
a. Basic + Cost of living allowance [ revisable as per cost of living index]
or
b. Basic + Cash Value of the concessions of essential supplies at concessional rates
or
c Basic+ Living Allowance+Cash Value
(2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rate shall be computed by an authority appointed by appropriate government and by prescribed rules.
8. Procedure for fixing and revising minimum wages.
(1) In fixing minimum rates of wages for the first time or in revising minimum rates of
wages under this Code
(a) appoint as many committees as it considers necessary to hold enquiries and recommend in respect of such fixation or revision, or
(b) by notification publish its proposals and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration. Here, it shall also consult the concerned Advisory Board constituted under section 42.
(2) Every committee appointed shall consist of persons––
(a) representing employers;
(b) representing employees which shall be equal in number of the members of employers, and
(c) independent persons, not exceeding one-third of the total members of the committee.
(3) After considering the recommendation of the committee, all representations received by it before the date specified in the notification, govt shall by notification fix or revise the minimum rates of wages and unless such notification otherwise provides,
it shall come into force on the expiry of three months from the date of its issue:
(4) The Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years.
9. Power of Central Government to fix a floor wage.
(1) The Central Government shall fix floor wage taking into account minimum living standards of a worker.
Different floor wage may be fixed for different geographical areas.
(2) The minimum rates of wages will be higher of floor wage and minimum wage fixed by appropriate govt. And appropriate govt shall not change the minimum wage fixed earlier below floor wage.
(3) The Central Government may, before fixing the floor wage obtain the advice of the Central Advisory Board and consult State Governments.
10. Wages of an employee who works for less than a normal working day.
If an employee on a daily wage works for lesser hours, he shall be entitled to receive full wages in respect of work done on that day.
he shall not be entitled to receive wages for a full normal working day if
(i) Failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work; and
(ii) in such other similar cases and circumstances
11. Wages for two or more classes of work.
Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the minimum wage will be pro-rata based on hours.
12. Minimum time rate wages for piece work.
Where a person is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Code, the employer shall pay to such person wages at not less than the minimum time rate.
13. Fixing hours of work for the normal working day.
(1) Where the minimum rates of wages have been fixed under this Code, the
appropriate Government may —
(a) fix the number of hours of work for the normal working day with 1 or more interval
(b) provide for a day of rest in every period of seven days with remuneration
(c) provide for payment for work on a day of rest at a rate not less than the overtime rate.
(2) The provisions of sub-section (1) shall, in relation to the following classes of
employees apply, only to such extent and subject to such conditions as may be prescribed,
namely:—
(a) employees engaged in any emergency which could not have been foreseen
or prevented;
(b) employees engaged in work of the nature of preparatory or complementary
work which must necessarily be carried on outside the limits laid down for the general
working in the employment concerned;
(c) employees whose employment is essentially intermittent;
(d) employees engaged in any work which for technical reasons has to be
completed before the duty is over; and
(e) employees engaged in a work which could not be carried on except at times
dependent on the irregular action of natural forces.
(3) For the purposes of clause (c) of sub-section (2), the employment of an employee is
essentially intermittent when it is declared to be so by the appropriate Government on the
the ground that the daily hours of duty of the employee, or if there be no daily hours of duty as
such for the employee, the hours of duty normally include periods of inaction during which
the employee may be on duty but is not called upon to display either physical activity or
sustained attention.
14. Wages for overtime work.
Where an employee whose minimum rate of wages has been fixed under this Code by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess, at the overtime rate which shall not be less than twice the normal rate of wages.
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