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Tuesday 10 May 2016

Minimum wages Act

Press Information Bureau
Government of India
Ministry of Labour & Employment
09-May-2016 17:43 IST

Minimum wages Act
The total number of contract labourers both in organized and unorganized sector engaged on the basis of license issued under Contract Labour(Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years is given below:-
  No. of Contract Labour

The data in respect of casual workers in not centrally maintained.

Considering the reality of industrial practices as well as the wage security for the contract workers, proposal for rationalization of wages for contract workers, so as to ensure that the minimum monthly wage of such workers does not fall below Rs. 10,000/-, was under consideration of the Government. After due deliberation, a draft Notification for amending Rule 25(2)(iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 has already been issued to give effect to the above stated objective and comments of stakeholders were solicited vide Notification No. G.S.R. 368(E) dated 30.03.2016. All comments/suggestions received from stakeholders within the prescribed time limit are under examination. The final notification will accordingly be issued after consideration of the suggestions and approval of the competent authority.

The minimum wages for the Contract Workers employed as Scheduled Employment are revised twice in a year i.e. in April and October by adding Variable Dearness Allowance in the basic rate.

A well-established Central Industrial Relations Machinery (CIRM) is in place to enforce various labour laws including the Minimum Wages Act, 1948. The country-wide CIRM network of Dy. Chief Labour Commissioners and Regional Labour Commissioners under the control of Chief Labour Commissioner (Central) is mandated to settle the complaints/claims arising out of non-payment or payment of lower wages. Besides, a grievance redressal mechanism exists in the States/UTs in respect of the grievances pertaining to establishment coming under the State Sphere.

The Contract Labour (Regulation & Abolition) Act, 1970 does not cover those contract workmen who are employed in an establishment where less than twenty workmen were employed on any day of the preceding twelve months. However, the number of contract labourers engaged on the basis of license issued under Contract Labour (Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years has been furnished above in reply to part (a) of question.

The details of inspections conducted under Minimum Wages Act, 1948 are enlisted.





No. of inspections conducted




No. of irregularities detected




No. of prosecutions launched




No. of convictions




 This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.