The Minimum Wages Act 1948

Objective An Act to provide for fixing minimum rates of wages in certain employments The Minimum Wages Act 1948

Eligibility Scheduled employment means an employment specified in the schedule Employee includes an out worker or a home worker The Minimum Wages Act 1948

Fixing of Minimum Rates of Wages To employees employed in an employment Review at such intervals as it may think fit, such intervals not exceeding 5 years. (This can be done within 5 years also) The Minimum Wages Act 1948

Classifications Minimum time rate Minimum piece rate Minimum guaranteed rate Over time rate Such fixation may be by the hours, days, month or such other period. The Minimum Wages Act 1948

Minimum wages include Basic wage and Dearness Allowance (based on cost of living index) A basic rate of wage with or without the cost of living allowance and the cash value of concessional supply of essential commodities All inclusive rates Minimum Wages so notifies shall be paid by the employer The Minimum Wages Act 1948

Procedure for fixing and Revising Minimum Wages Committee Methods – By appointing committees and Sub-Committees Notification Method – Publishing Government proposal for the information of the persons likely to be affected, giving not less than 2 months time The Minimum Wages Act 1948

Committee The Government shall constitute an Advisory Board Tripartite Committee Chairman –Government Officer Equal representation from Workers and Employers The Minimum Wages Act 1948

Maintenance of Registers & Records Register of Wages Wage Slip Muster Roll Register of Fines Register of Deduction To exhibit the abstract of Act & Rules To exhibit rates of Minimum wages Name & Address of the Inspector The Minimum Wages Act 1948

Claims Before the Dy. Commissioner of Labour having jurisdiction It may be by the worker himself, or by his authorized person or by a trade union leader or by the Inspector or by any legal practitioner – Within 6 Months The Minimum Wages Act 1948

Penalties For paying less than the fixed rate or Contravening any rule made herein or under Section 13 – Imprisonment upto 6 months or fine upto Rs.500/- The Minimum Wages Act 1948

The Employees’ State Insurance Act

Benefits to Employees Sickness Maternity and Employment Injury ESI Act - Constituted by Central Government The Employees’ State Insurance Act

Applicability Originally applicable for non-seasonal factories using power and employing 20 or more persons Now applicable to non-seasonal power using factories employing 10 or more persons Non-power using factories employing 20 or more persons The Employees’ State Insurance Act

Scheme Extended to Shops Hotels Cinema theatres including preview theatres Road motor transport undertakings & Newspaper establishments Employing 20 or more persons The Employees’ State Insurance Act

Entitlement Every employee (Including casual and temporary employees) whether employed directly or through a contractor, who is in receipt of wages upto Rs.10,000 p.m. is entitled to be insured under ESI Act Apprentices (engaged under the Apprentices Act) are not entitled to ESI benefits Eligibility: Workers from the date of joining the service The Employees’ State Insurance Act

Entitlement Persons employed in a canteen of a club Drivers employed by the transport organization Persons engaged in distribution and sale of products Persons carrying administrative work of processing the orders and executing sales Hawkers employed for sale or products Employees of cycle stand and canteen run in cinema theatres by contractors Members of editorial and administrative staff of a printing press publishing newspaper A home worker rolling beedies at home Medical representative Persons employed in a hospital attached to and maintained by the factory Part-time doctor employed for ambulance room Book binders engaged by a contractor and sales clerk working in a factory The Employees’ State Insurance Act

Act does not apply to Factories working with the aid of power wherein less than 10 persons are employed Factories working without the aid of power wherein less than 20 persons are employed Seasonal factories engaged exclusively in any of the following activities viz., cotton ginning, cotton or jute pressing, decortications of groundnuts, the manufacture of coffee, indigo, rubber, sugar (including gur) or tea or any manufacturing process Factories engaged for a period not exceeding 7 months in a year blending, packing or repackaging of tea or coffee or in such a process as may be specified by the Central Government Mines Railway running sheds The Employees’ State Insurance Act

Rate of Contribution Employer : 4.75%* Employee : 1.75%** Total : 6.50% * 4.75% of the wages paid/payable in respect of every wage period ** Wages less than Rs.40/day –No need to pay The Employees’ State Insurance Act

Contribution Periods Two contribution periods Each of 6 months duration Two benefit periods The Employees’ State Insurance Act

Benefits Full medical facilities for self& dependents are admissible from day one of entering insurable employment Extended Sickness Benefit (Cash) – (For specified 34 long term diseases) Payable for a maximum period of 2 years on the basis of proper medical certification and authentication by the designated authority For entitlement, the worker should have been in employment for atleast 2 years. He should also have paid contribution for a minimum 156 days in the preceding 4 contribution periods or 2 years The Employees’ State Insurance Act

Benefits Enhanced Sickness Benefit (Cash) – Insured persons in the productive age group for undergoing sterilization operation viz., Vasectomy / tubectomy Amount payable is equal to full wages Dependents Benefits (Cash) Widow –on monthly basis for life or till her re-marriage Son/daughter – till age of 18 70% of the wages (shareable among dependants in fixed ratio) The Employees’ State Insurance Act

Benefits Disablement Benefit 70% of the wages Duly certified by authorized insurance medical officer The Employees’ State Insurance Act

In case of Accidents Form 16 – To be submitted to Local ESI office and Insurance Medical officer The Employees’ State Insurance Act

The Employees’ Provident Fund

Objective Provides for Compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death The Employees’ Provident Fund

Entitlement Every factory engaged 20 or more persons The Employees’ Provident Fund

Contribution Ratio 12% of the basic wages (& DA) 8.33% to Pension Scheme 3.67% to PF Scheme The Employees’ Provident Fund

Advance Partial Withdrawal Financing of Life Insurance Policy Meeting expenses of marriage of self, children/brother/sister Post matriculation education of children Acquiring dwelling house or site Repaying housing loans Meeting expenses or sickness Overcoming temporary un-employment period Purchasing necessary auxiliary aids for handicapped members Overcoming the distress due to natural calamities 30 days from the date of submission of claim The Employees’ Provident Fund

Full & Final Settlement of Claims On resignation On retirement from service after attaining the age of 55 years On account of total and permanent incapacity of work On termination of service on a voluntary scheme or on retrenchment 30 days from the date of submission of claim The Employees’ Provident Fund

Submission of Forms Form 2  Nomination form Form 5  Addition of new employees Form 10  Deletion of employees Form 10C  To obtain pension Form 11  Obtain details of previous employment Form 12A  Monthly Returns Form 13  PF Transfer form Form 19  To close the PF account Form 3A  To be sent along with Form 19 Form 20  In case of death – Nominees to send Form 23  PF statement of Accounts to all members Form 31  Advance partial withdrawal Form 6A & 3A  Annual Returns The Employees’ Provident Fund

Thank You - Bhuvana.AL