Minimum Wages Act, 1948

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Minimum Wages Act, 1948 PDF

The Central Legislative Assembly passed the Minimum Wages Act for the first time in 1948. The fundamental goal of this Act was to close the wage gap between different types of workers in a company.

This Act establishes minimum wage rates for various types of jobs.

Fixed Up Minimum Rate Wages

The competent Government may determine or adjust the minimum pay rate for planned employments under section 3 as follows:

a base salary rate and a special allowance (hence referred to as the “cost of living allowance”) that is adjusted by changes in the cost of living index number applicable to such workers.

a basic wage rate, with or without a cost-of-living allowance, and the monetary worth of concessions in the form of discounted deliveries of essential items.

an all-in rate that includes the basic rate, the cost of living allowance, plus the monetary worth of any concessions, if any are available.

Minimum Wages Act Applicability


The terms of the Minimum Wages Act apply to all jobs that employ more than 1000 people in a certain state. It also applies to all Indian states, except Jammu and Kashmir. The provisions of this Act do not apply to workers of the Central Government’s or Railways’ undertakings unless the Central Government expressly consents.

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