Fixation and Revision of Minimum Wages
Under the Minimum Wages Act, 1948, both Central and State governments have dominion over fixing the wages. The State governments fix their scheduled employments and further release the rates of Minimum Wage along with the VDA (Variable Dearness Allowance).
Scope and Applicability
The Minimum Wages Act was enforced to ensure that employers did not exploit employees with insufficient wages. The Act applies to all establishments, factories, places of business, and industry types. Unscheduled industries are generally excluded, though a state can add a minimum wage for an occupation or specify it for a sector during a revision cycle.
Consequences of Non-Compliance
Under-payment and non-payment of Minimum Wage are deemed an offence under the Central Act. The penalty may range from up to 5 years imprisonment and a fine of Rs. 10,000 (under Section 22 of the Act).
Minimum Wages For States Across India
The states which impose minimum wages in India are listed below along with their effective dates: (Click on the state name for more details)
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