The Minimum Wages Act, 1948 - In India there are three kinds of wages 1. Living Wage, 2. Minimum Wages and
3. Fair Wages. The minimum wage is the lowest wage on the scale, less than the minimum wage the efficiency
of the worker is at stake. The Minimum Wage Act is to clarify the fixing minimum rates of wages in certain
employments. Whereas it is expedient to provide for fixing minimum rates of wages in certain employments.
The Act enables the Central and State Government to fix the minimum rate of wages in the manner specified
in the Act.
The appropriate governments fix the minimum rate of wages based on the Schedule of employment,
clauses of work, nature of employment and geographical zones. The appropriate Government must review the
minimum rates of wages fixed by it in respect of any scheduled employment within any interval of five
years.The appropriate Government can notify after an enquiry on any industry or nature of employment under
the scheduled employment on engagement of 1000 or more employees. The appropriate governments to make
the minimum wages into two parts as Basic Wages and Dearness Allowance. The Dearness Allowance is an
allowance notified by the appropriate government to compensate for the increased cost of living due to
inflation. The Dearness Allowances are revised time to time as per State or Central policy.
