We all are aware of the fact that India, being a developing country is devoid of employment. Many of them are in search of jobs and are lacking a source of income. And may are among those who are employed yet are exploited by their employers. To allow worker/employees to have a source of income and to save them from being exploited the Minimum Wages Act 1948 has been established and enacted by the Central Legislative Assembly.

The Minimum Wages Act is here to provide a fixed minimum wage rate which is really an appreciated approach that Government has taken up to fix the minimum wage rate and revise the minimum wage rate at the interval of every five years. Not only this, but the government is empowered to appoint an advisory committee to provide a justified representation of the employers as well employees.

Let us go in dept knowledge to get a better clarity about The Minimum Wages Act, 1948. But before that it is important to go through the definition of the term “wages” as defined under the Minimum Wages Act.

The term “wages” is defined in Section 2 of the Minimum Wages Act which states: –

“wages” means every kind of remuneration that is capable of being expressed in terms of money which would if terms of the contract of employment express or implied, we fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and include house rent allowance (HRA) but excludes: –

• Any house accommodation, supply of light, water medical attendance or;
• Any other amenity or any service excluded by general or special order of the appropriate Government;
• Any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
• any travelling allowance or the value of any travelling concession;
• any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
• any gratuity payable on discharge.