Minimum Wages Act, 1948

What is Minimum Wages Act, 1948?

The Minimum Wages Act, 1948 applies to scheduled employments listed by the central and state governments. Each appropriate government fixes a minimum rate for time work, piece work, overtime, and guaranteed time, and revises it at least once every 5 years. Wages are split into basic and a Variable Dearness Allowance (VDA) that is reset every 6 months based on the Consumer Price Index. Rates differ by skill category, zone (Zone A metros, Zone B district headquarters, Zone C rural), and sector. Employers must pay at least the notified minimum, regardless of contract, and display the rates at the workplace. Maintaining wage registers, muster rolls, and overtime records is mandatory. Section 22 prescribes imprisonment up to 6 months or a fine up to ₹500 for paying below the minimum, plus full arrears to the worker.

Example

In Karnataka Zone A (Bengaluru), the minimum monthly wage for a skilled IT support role is around ₹17,500 (basic + VDA). Paying ₹16,000 violates the Act and triggers arrears.

How Minimum Wages Act, 1948 is used

Track each state and skill-category notification. Update payroll on every VDA revision (April and October typically) so no employee falls below the floor.

Minimum Wages Act, 1948 FAQs

How often are minimum wage rates revised?

Basic rates are revised at least once every 5 years. The VDA component is reviewed every 6 months (typically April and October) based on CPI movement. Effective rates therefore change twice a year.

Does the Minimum Wages Act override the Code on Wages?

Once the Code on Wages, 2019 is fully notified in a state, it replaces the 1948 Act. Until then, the Minimum Wages Act continues to govern minimum wage fixation in that state.

Are interns and apprentices covered?

Apprentices engaged under the Apprentices Act, 1961 are governed by stipend rules, not minimum wages. Interns hired directly by an employer are usually covered under the Minimum Wages Act.