1. The Minimum Wages Act 1948

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

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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. The Employees’ State Insurance Act

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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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

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

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

25. The Employees’ Provident Fund

26. 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

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

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

29. 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

30. 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

31. 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

32. Thank You
- Bhuvana.AL