Revision of Minimum Wages

 Revision of Minimum Wages

Section 3(1) (b) of the Minimum Wages Act, 1948 mandates the Central Government and the State Governments to review the minimum rates of wages so fixed in the Scheduled employments in their respective jurisdiction at intervals not exceeding five years and revise the minimum rates, if necessary. The minimum rates of wages in the Scheduled employments in the Central sphere were revised in 2017. Further, in order to take care of the rising prices, the Central Government revises the Variable Dearness Allowance (V.D.A) on basic rates of minimum wages every six months effective from 1st April and 1st October every year on the basis of Consumer Price Index for Industrial workers. V.D.A. was last revised w.e.f. 01.10.2021. A statement showing increase in the rates of wages since revision in 2017 on account of increasing V.D.A payable to the employees engaged in the scheduled employments in the Central Sphere is at Annexure.

The Government is not only committed to periodic review and revision of the minimum rates of wages but also to extend its coverage across employments and provide for floor wage. Accordingly, the provisions of the Minimum Wages Act, 1948, have been rationalized and amalgamated in the Code on Wages Act, 2019, as passed by the Parliament and notified on 08.08.2019. The Code on Wages, 2019, provides for universal minimum wage and floor wage across employments in organized and unorganized sector and the existing provision, under the Minimum Wages Act, 1948 to restrict applicability of minimum wages to Scheduled employments, has been dispensed with under the Code. The Code mandates the Central Government to fix floor wage applicable across the Central and the State sphere. The Code stipulates that the minimum rates of wages fixed by the appropriate Government shall not be less than the floor wage. The said provisions of the Code on Wages, 2019, have not come into force.

This information was given by Shri Rameswar Teli, Minister of State, Ministry of Labour & Employment in Rajya Sabha today.

Increase in the rates of wages since revision in 2017 on account of increasing V.D.A payable to the employees engaged in the scheduled employments in the Central Sphere