Wednesday, 4 April 2018

Payment of Minimum Wages to Contract/Casual Employees

Ministry of Labour & Employment

Payment of Minimum Wages to Contract/Casual Employees

04 APR 2018
The basic rate of minimum wages for the scheduled employments in the Central sphere was last revised and notified on 19.01.2017. A component of minimum rates of wage, Variable Dearness Allowance (V.D.A.), was last revised on 01.10.2017.Rates fixed for the scheduled employments in the Central sphere are applicable to establishments under the authority of Central Government, railway administration, mines, oil-fields, major port or any corporation established by a Central Government. These rates are equally applicable to contract and casual labourers/worker. The implementation of the Act is done by the Centre as well as the States in respect of their respective jurisdiction. In the Central Sphere, the enforcement is secured through the Inspecting Officers of the Chief Labour Commissioner (Central) commonly designated as Central Industrial Relations Machinery (CIRM) across the Country for workers falling under the Scheduled Employment in the Central Sphere including CPSUs and Railways establishments through regular inspections. In case of non-compliance, penal provisions against the defaulting employers are invoked.This Ministry is in constant endeavor towards implementing the revised rates of minimum wages. As far as employees in Railway are concerned guidelines were issued in December, 2017 to Ministry of Railways/Railway Board. Ministry of Railways has also issued instructions to its Zonal Offices across the country for strict compliance of minimum wages in December, 2017.The data of inspections, amount of claims, action taken against defaulting employer under the Minimum Wage Act, 1948 in the Central Sphere for the last three years is at Annexure 'A'.

Annexure 'A'

Claims cases under Minimum Wages Act, 1948
Year Claims Amount
B/F Filed Decided Awarded Recovered Paid to Workers
2015-16 3672 743 1796 66654417 44128036 34879425
2016-17 2610 1198 1138 96684922 49485990 48540964
2017-18(upto Dec.,2017) 2617 1050 819 95757253 20697840 24866702

Minimum Wages Act, 1948
Sl.No. Particulars 2015-16 2016-17 2017 -18(upto Dec,2017)
1. No. of Inspections Conducted 9803 9151 7380
2. No. of Irregularities Detected 75938 61689 62304
3. No. of Irregularities Rectified 46467 53255 28884
4. No. of Prosecutions Launched 1549 2321 1130
5. No. of Convictions 1476 1951 1721
This information was given by Shri Santosh Kumar Gangwar, Union Minister of State (I/C) for Labour and Employment in written reply to a question in Rajya Sabha today.


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