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(Minimum Wages Act, 1948 & Rules) - Coggle Diagram

- - - - Applies to: All establishments employing workers in scheduled employments (industrial, manufacturing, mining, construction, transport, agriculture).
      - Includes: Both organized and unorganized sectors.
      - Excludes: Managerial or supervisory staff earning above the wage ceiling notified by the Government.
    - - Skilled, semi-skilled, and unskilled workers
      - Daily wage, monthly wage, and piece-rate workers
      - Contract workers under covered establishments
    - - Fixation of minimum wages by Central or State Government for scheduled employments.
      - Minimum wages include basic pay + cost of living allowances.
      - Wages must be revised at intervals not exceeding 5 years (typically every 2–3 years).
      - Payment must be made on a timely basis, without unauthorized deductions.
      - Display of minimum wage rates at prominent locations in the workplace.
      - Central & State Governments can fix different wages for adult, adolescent, and child workers (child labour strictly prohibited elsewhere).
    - - Payment of wages below notified minimum rates.
      - Discrimination in wages based on gender or caste.
      - Delay in wage payment beyond the stipulated wage period.
      - Non-display of minimum wage notification at workplace.
    - - Fine up to ₹10,000 for underpayment or non-compliance.
      - Imprisonment up to 6 months in case of repeated violation.
      - Recovery of unpaid wages through Inspector of Labour / Labour Court.
      - Liability extends to contractor or principal employer if applicable.
    - - Ensure payment of minimum wages to all workers in scheduled employments.
      - Maintain Register of Wages (Form XIII) and Wage Slips.
      - Submit Annual Return of wages paid (Form XIV).
      - Display minimum wage rates at workplace, notice boards, and online (if applicable).
      - Avoid unauthorized deductions; only statutory deductions allowed.
      - Implement gender-neutral wage policies and maintain records for inspection.
    - - Right to receive at least the minimum wage for their work category.
      - Right to access wage register & records for verification.
      - Right to report violations to Inspector of Labour or Labour Commissioner.
      - Right to statutory benefits (PF, ESIC) if applicable.
    - - Shram Suvidha Portal – File returns and register inspections.
      - State Labour Portals – Wage reporting & employee verification.
      - EPF / ESI Portals – For statutory contributions alongside wages.
    - - Minimum Wages Rules, 1948 (India)
        
        🟢 Rules Overview:
        
        Purpose: To provide procedural clarity for implementing the Minimum Wages Act, 1948.
        
        Applies to: All scheduled employments notified under the Act.
        
        Issued by: Central Government (for central employments) and State Governments (for state employments).
        
        ⚙️ Key Provisions / Obligations:
        
        Fixation of Wages:
        
        Rules define intervals for wage revision (usually every 5 years; State may revise earlier).
        
        Central/State Government to notify wages separately for adult, adolescent, and women workers.
        
        Payment of Wages:
        
        Wages must be paid in currency or cheque.
        
        Payment period: Daily, weekly, or monthly as per employment type.
        
        Prohibits deductions not authorized by the Act.
        
        Register Maintenance:
        
        Form XIII: Register of Wages – contains employee name, category, hours worked, rate of wages, and deductions.
        
        Form XIV: Wage Slip / Wage Register – proof of payment to employee.
        
        Form XV: Annual Return of Wages – submitted to Inspector of Labour.
        
        Display Requirement:
        
        Minimum wage rate notification must be displayed in local language on notice board.
        
        Must be accessible to all workers at the workplace.
        
        Inspection & Verification:
        
        Labour Inspectors can inspect wage registers, wage slips, and annual returns.
        
        Employers must provide access to records during inspections.
        
        Penalties applied for non-maintenance or falsification of records.
        
        ⚠️ Prohibitions under the Rules:
        
        Paying below the notified minimum wage.
        
        Unauthorized deductions from wages.
        
        Non-maintenance or non-submission of forms/registers.
        
        Failure to display minimum wages at workplace.
        
        Delay in wage payment beyond the scheduled period.
        
        ⚖️ Penalties:
        
        Fine up to ₹10,000 for non-maintenance of records or non-payment.
        
        Imprisonment up to 6 months for repeated offenses.
        
        Recovery of unpaid wages through Inspector of Labour / Labour Court.
        
        Possible liability for contractors or principal employers.
        
        🧾 Employer Compliance Checklist (Rules):
        
        Maintain Register of Wages (Form XIII) and Wage Slips.
        
        File Annual Return of Wages (Form XV) on time.
        
        Display minimum wages clearly at the workplace.
        
        Ensure payment of wages as per Act (daily, weekly, or monthly).
        
        Avoid unauthorized deductions.
        
        Keep records ready for inspection by Labour Authorities.
        
        🟣 Digital Compliance / Online Portals:
        
        Shram Suvidha Portal – for returns, inspections, and records.
        
        State Labour Portals – employee verification & wage reporting.
        
        EPF/ESIC Portals – link wages with statutory contributions.
        
        🔴 Enforcement Authority:
        
        Inspector of Labour (State or Central)
        
        Labour Commissioner / Labour Court
        
        Ministry of Labour & Employment (Policy Oversight)