Proposals for amendment to the Minimum Wages Act, 1948

Proposals for amendment to the Minimum Wages Act, 1948

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA

STARRED QUESTION NO 6

ANSWERED ON 24.11.2014

AMENDMENT TO MINIMUM WAGES ACT

6 . Sampath Shri Anirudhan

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-

(a)whether suggestions have been received from various quarters to amend the Minimum Wages Act, 1948 and if so, the details thereof;

(b)whether the amendment proposes to cover all the employment sectors and increase penal provisions; and

(c)if so, the details thereof ?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a) to (c): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA STARRED QUESTION NO. 6 FOR 24.11.2014 BY DR. A. SAMPATH REGARDING “AMENDMENT TO MINIMUM WAGES ACT”.

(a) to (c): Yes, Madam. Major Central Trade Unions had raised demands to ensure universal coverage irrespective of the schedules and fixation of statutory minimum wage at not less than Rs.10,000/- linked with cost price index on 04.09.2012. Further, the demand to fix minimum wages not less than Rs.15,000/- per month was placed before the Government by these trade unions on 06.06.2014 and 24.06.2014.

Proposals for amendment to the Minimum Wages Act, 1948 were put on the website of the Ministry of Labour and Employment on 17.06.2014 for public consultation. The proposals inter-alia include universal coverage to all the employments by removing the restriction of 1000 or more workers for an employment to come within the purview of Minimum Wages Act, making National Floor Level Minimum Wage (NFLMW) statutory and enhancement of penal provisions by increasing the fine prescribed for contravention of certain provision of the Act from Rs.500/- to Rs.5,000/- on first conviction and with imprisonment for a term which may extend to one year or with fine of not less than Rs.5,000/- extending up to Rs.10,000/- in the case of second or subsequent conviction under the Act.