Minimum wages Act

Minimum wages act to be amended by the Central Government

November 18, 2015

The Minimum Wages Act was introduced by the Indian constitution to ensure some level of relative comfort along with basic necessities to skilled and unskilled laborers.

The Minimum Wages Act has undergone various changes since its conception. The recent one came in the way of an amendment by the Central government. According to this, the Central government will have a basic say on the Minimum wages Act and the State Government will continue to define the values based on that. The Central Government will be prescribed a National minimum wage for three different categories of States.

As usual, the states have to fix the Minimum wages depending on which category it belongs to. But it would be mandatory for the States to set their minimum wage not below the National Minimum Wage which is being prescribed by the Central Government. If the minimum wage notified by a State is already higher than the National Minimum Wage being prescribed by the Central Government, the higher notified minimum wage shall continue to prevail.

While prescribing the National Minimum Wage the norms given by the ILC and Supreme Court judgment will be taken into consideration. At present the National Floor Level Minimum Wage is Rs. 160 per day, but by implementing the above-said norms the minimum wage would be not less than Rs. 273 per day.


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