The Minimum Wages Act, 1948 is an Act of Parliament, cited as Act No. 11 of 1948, enacted to provide for fixing minimum rates of wages in certain employments. It was introduced to prevent the exploitation of workers, particularly in unorganized sectors, who lacked bargaining power. The Act came into force on March 15, 1948, following a push for legislation that would guarantee a basic standard of living, which was absent in earlier laws like the Payment of Wages Act, 1936.
The Act's mechanism centers on the "appropriate Government"—either the Central or State Government—which has the jurisdiction to fix and revise minimum wages for workers in "scheduled employments". Section 3 of the Act empowers the government to fix minimum rates of wages, which must be reviewed and revised periodically, typically within a period not exceeding five years. The minimum wage is defined not just for bare subsistence but also to provide for education, medical requirements, and some level of comfort, as established by the Tripartite Committee of Fair Wage appointed in 1948. The Act also includes provisions for fixing hours for a normal working day and mandates payment for overtime work.
The Minimum Wages Act, 1948, is a foundational piece of Indian labour law, but it has been repealed and replaced by the Code on Wages, 2019. The Code on Wages, 2019, which also consolidates the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976, significantly broadened the scope of wage protection. While the 1948 Act applied only to "scheduled employments," the Code on Wages, 2019, extends minimum wage coverage universally to all employees in both organized and unorganized sectors and introduces the concept of a national "floor wage".