Payment of Wages Act, 1936

The act was introduced as a measure in response to illegal deductions in the wages by the management and delay in disbursing the salaries of workers. The act mandated timely payment of wages without unauthorized deductions. Key Highlights –

• Employed persons with a wage not exceeding twenty-four thousand rupees per month. Specifies that a wage period shall not exceed one month.Requires a person to nominate or designate responsibility for payment, punishable by a fine of up to three thousand rupees. Requires wages to be paid before the seventh or tenth day, depending on the establishment size.

Payment of Bonus Act, 1965: The fundamental objective of the Payment of Bonus Act is to enhance workers’ morale by enabling them to partake in the profits of the establishment. This legislation ensures their entitlement to a share in the surplus generated by the business and is applicable nationwide. Key highlights –

• Applies to every factory and establishment employing a minimum of 20 persons during the accounting year. Covers all establishments, including part-time employees.Minimum bonus is 8.33% of salary or Rs. 100, whichever is higher; maximum is 20%.Employees earning up to Rs. 21,000 per month are eligible, given they have worked for not less than 30 days in a year. Bonus to be paid within 8 months from the end of the accounting year. Bonus calculated on Basic Salary + Dearness Allowance.

Minimum Wages Act, 1948

The Minimum Wages Act of 1948 ensures fair wages for Indian workers by determining minimum wages in various occupations. It covers all types of work, skilled or unskilled, manual or clerical. Moreover, the Act establishes Minimum Wages Advisory Boards at the state level and a Central Advisory Board at the national level to advise on wage fixation.

It also mandates the appointment of a Wages Authority by the State Government to enforce the Act, ensuring compliance with minimum wage provisions. Key highlights –

• The revised minimum wages are decided by the appropriate government every six months.
• Post amendment, the rates are published by the Government in official newspapers and enforced within three months.
• While state and central governments can fix and revise minimum wages, the central government fixes the National floor level Minimum Wage.

Equal Remuneration Act, 1976.

The act ensures equal remuneration for men and women workers, prevents gender-based discrimination in employment, and addresses related matters and incidental issues. Qualifications, duties, dependability, experience, secrecy, functional needs, and hierarchy-related requirements are considered in assessing work equality. The Ministry of Labour and the Central Advisory Committee are responsible for enforcing the Act. Key highlights –

• The Act applies universally, covering all types of employment, regardless of duration, even if employed for a brief period.
• The act applies to all workers irrespective of the time period for which they were employed.