Section 6: Fixation of minimum wages

Overview

This section of the Code on Wages, 2019, deals with the crucial topic of minimum wages. It gives the government the power to decide the least amount of money an employer must pay their employees for their work. This ensures a basic standard of living for workers and prevents exploitation.

Scope and Coverage

• Which employees and establishments are covered: This section applies to all employees, regardless of their skill level or the type of work they do. It covers establishments in all sectors – factories, shops, offices, and more.
• Any thresholds or exclusions: While generally applicable, specific minimum wage rates can be fixed differently based on factors like geographical area, type of work, skill level, and nature of the establishment. There are no broad exclusions; however, the applicability might vary based on state-specific rules framed under the Code.

Key Obligations and Rights

• Main duties of employers: Employers must pay their employees at least the minimum wage rate fixed by the appropriate Government. They cannot deduct amounts that bring the wage below the minimum wage. Employers are also required to display the minimum wage rates prominently in the workplace.
• Important rights or protections for employees: Employees have the right to receive at least the minimum wage for the work they perform. This protects them from being paid unfairly low wages. They can approach labor authorities if their employer fails to comply.

Compliance and Penalties

If an employer violates the minimum wage provisions, they can face serious consequences. This includes inspections by labor officials, who can investigate complaints and verify wage payments. Penalties can include fines and, in some cases, imprisonment. Repeated or serious violations can lead to more severe penalties.

Practical Examples

• Example 1 from a typical workplace: Ramesh works in a garment factory. The government has fixed the minimum wage for garment workers in his area at ₹350 per day. His employer cannot pay him less than ₹350, even if he is a new employee or is on probation.
• Example 2 for a borderline scenario: Priya works as a helper in a small shop. The shop owner deducts ₹50 from her wage each month for damages to shop property. If this deduction brings her daily wage below the legally mandated minimum wage, the shop owner is violating Section 6 and can be penalized.