Section 12

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Criminal liability Minimum wage Wage manipulation, non-payment or withholding of wages

Section 12 requires employers to pay at least the minimum wage rate set for the relevant class of employees in their employment.

Notes

Section 22 punishes the violation of this section with imprisonment for up to six months, or with a fine of up to 500 rupees, or with both.

According to information published in the ILO’s 2014 General Survey on Minimum Wage Systems, minimum wages have been fixed centrally for 45 occupational categories and at the state level for 1,679 occupational categories.

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Section 12. Payment of minimum rates of wages.

(1) Where in respect of any scheduled employment a notification under section 5 is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorized within such time and subject to such conditions as may be prescribed.

(2) Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936.

Law /India / Minimum Wages Act, 1948

The Minimum Wages Act, 1948 is aimed at preventing the exploitation of workers by fixing minimum wages that must be met by employers.

The Minimum Wages Act provides for the fixing of minimum wages by the authorities at the federal and state levels, for a certain number of occupations in non-organized sectors where the risk of exploitation of workers is considered high. In organized sectors, such as banking, the applicable wages are fixed by collective agreement.

As the task of fixing wages varies from region to region, industry to industry, and establishment to establishment, the Supreme Court has issued principles from time to time for the determination and fixing of minimum wages.

According to information published in the ILO’s 2014 General Survey on Minimum Wage Systems, minimum wages have been fixed centrally for 45 occupational categories and at the state level for 1,679 occupational categories.