Under the Committee Method, committees and sub-committees are set up by the Government to hold inquiries and make recommendations with regard to the fixation and revision of minimum wages. The Minimum Wages Act provides for two methods of fixation/revision of minimum wages. Minimum wages may be reviewed at different intervals however such intervals cannot exceed five years. should further constitute 25% of the total minimum wage (the last component added by the Supreme Court in Reptakos Brett Vs Workmen case in 1991). Minimum wage is revised while considering the following five elements: three consumption units per earner minimum food requirement of 2700 calories per average adult cloth requirement of 72 yards per annum per family house rent corresponding to the minimum area provided under the Government's Industrial Housing Scheme fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage and children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. Minimum wage is announced for 45 scheduled employments in the Central Sphere while the State level minimum wage is determined by every state keeping in view the sectors more dominant in the State. Both the Central and State Governments are empowered to notify any employment (industry/sector) in the schedule where the number of employees is 1000 or more and fix the rates of minimum wages in respect of the employees employed therein. The scheduled employments include both the agricultural and non-agricultural employments. Under the Minimum Wages Act, both the Central and State Governments may notify the scheduled employments and fix/revise minimum wage rates for these scheduled employments. The minimum wage rates may be fixed by hour, day, month or any such other larger wage period as may be prescribed. While fixing or revising minimum rates of wages, different minimum rates of wages may be fixed for different scheduled employments different classes of work in the same scheduled employment adults, adolescents, children and apprentices and different localities. The minimum rate of wages may consist of a basic rate of wages and a cost of living allowance or a basic rate of wages, with or without the cost of living allowance, and the cash value of concessions in respect of the supply of essential commodities at concession rates (if authorized) or an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions (if any). The minimum wage is determined by considering the cost of living. Also, the minimum wage is established for trainees, youth and piece-rate workers. Minimum wage rates may be established for any region, occupation and sector. Minimum wage rates in India are declared at the national, state, sectoral and skill/occupational levels. Since labour is a concurrent subject under the Indian Constitution, minimum wage rates are determined both by the Central Government and the Provincial Governments.
Minimum wage rates in India are fixed under the Minimum Wages Act, 1948. The new legal provisions will be effective only, once notified. The Central and State Governments have yet to notify the rules. The Four new Labour Codes were supposed to be effective from 01 April 2021 however considering the rise in COVID cases and the potential impact of the new Codes on per employee costs for enterprises, the Government has delayed implementation of new Codes to a future date. The Code on Wages, enacted in 2019, also amalgamated four relevant labour laws.
Last year (2020), the Indian Parliament combined 25 labour laws into three codes, i.e., the Social Security Code, the Code on Industrial Relations and the Code on Occupational Safety, Health and Working Conditions. Minimum Wage Note: Upcoming Labour Legislation in India Share your Story about Working for a Platform.