Some of the salient features of minimum wages act 1948 are as follows:-

The Act applied to certain employments (listed in the Schedule). Both the governments (Central and State) have to declare minimum wages for their sphere. The appropriate government may add any employment to the list if there are 1000 workers are working in that state.

Minimum wage means all remuneration in cash includes HRA (declared minimum wage + special allowance).

Kinds of fixing of Minimum wages: (a) a minimum time rate, (b) a minimum piece rate, (c) a guaranteed time rate, (d) a time rate or a piece rate applicable to overtime rate.

Classes of fixing minimum rates of wages : (a) different scheduled employments; (b) different classes of work in the same scheduled employment; (c) adults, adolescents, children and apprentices; and (d) different localities (zone wise).

Norms to be considered for fixing minimum wage: Standard family of four members – three consumption units (2 adults + 2 children) for one earner. Minimum food requirement should be calculated on the basis of a net intake of calories. Clothing a total of 72 yards;The rent corresponding to the minimum area (one room) Other routine expenditure 20% of the total minimum wage. Social expenditure – further constitute 25% of the total minimum wage.

Period to revise minimum wages by the appropriate government is five years.

The appropriate Government shall declare special allowance after every six months (i.e. 1st April and 1st October of every year).

In case of not paying minimum wage, a claim can be made under section 20 before the labor authority who can make or order of payment of 10 times of difference amount.

Not paying Minimum wages is an offence punishable up to six months’ imprisonment or with fine up to Rs. 500 or with both.

Contracting out: Any contract or agreement whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void.

Regional Labour Commissioner (C) is the authority declared by Central Government to decide claims (less than minimum wages) made under section 20 of the Act. Assistant Commissioner of Labour is an authority in Gujarat.