MINIMUM WAGE ACT

AND
PROVIDENT FUND ACT
MADE BY:ONKAR KAPOOR (B-52)

The MINIMUM WAGES ACT

1948
BRIEF HISTORY: The

initiative was taken by Shri K.G.R. Choudhary in 1920, who set up

boards for determination of wages.

A Minimum

Wages Bill was introduced in the Central Legislative

Assembly on 11th April 1946 and came into force with effect from 15th
March 1948.

The

Committee on Fair Wage was set up in 1948 to provide guidelines

for wage structure.

The MINIMUM WAGES ACT

1948
DEFINITION: The

Act was designed to secure the welfare of unorganised workers in

certain industries by fixing the minimum rates of wages. The Act
contemplates that minimum wages rates must ensure for him not only
his subsistence and that of his family but also preserve his efficiency as
a workman.

The

Act empowers the appropriate Government for fixation of

minimum wages in employments enumerated in the schedule to the Act.

The MINIMUM WAGES ACT

1948
OBJECTIVES: To provide
To stop

minimum wages to the workers working in organized sector.

exploitation of the workers.

To empower

the government to take steps for fixing minimum wages and

to revising it in a timely manner.

To apply

this law on most of the sections in organized sector.

The MINIMUM WAGES ACT

1948
FIXATION AND REVSION OF MINIMUM WAGES: The

minimum rates of wages will be reviewed/ revised, for every five

years, by the appropriate govt.

Appropriate

govt. can add any employment, to the schedule, wherein one

thousand or more employees are found working.

Different

minimum rates of wages may be fixed for different scheduled

employments/ different classes of work /different localities.

The MINIMUM WAGES ACT

1948
WHAT IS THE APPROPRIATE GOVENMENT?: In

relation to scheduled employment carried on by Central Government

or railways or est. under Central Act, the Central Government.

In

all other cases its the State Government.

The MINIMUM WAGES ACT

1948
EXAMPLE OF WAGE RATE IN DELHI:-

EXAMPLE OF WAGE RATE IN DELHI FOR

DIFFERENT SCHEDULES:-

EMPLOYEE PROVIDENT
FUND ACT 1952
EMPLOYEE PROVIDENT FUND DEFINITION: It

is a mandatory, tax-qualified, defined, contribution retrial benefit plan

wherein equal contribution at the specified rate is made by the employer
and the employee and the same is payable in lump sum on retirement.

It

is one of the main platforms of savings in India for nearly all people
working in Government, Public or Private sector Organizations. It is
implemented by the Employees Provident Fund Organization(EPFO) of
India.

EMPLOYEE PROVIDENT
FUND ACT 1952
PURPOSE AND OBJECTIVE: The

act has been enacted with the main objective of protecting the
interest of the employees after their retirement and their dependents after
death of the employee. The Act provides insurance to workers and their
dependents against risks of old age, retirement, discharge, retrenchment
or death.

EMPLOYEE PROVIDENT
FUND ACT 1952
E.P.F APPLICABILITY:The

Employees' Provident Funds & Miscellaneous Provisions Act, 1952 extends

to whole of India except the state of Jammu & Kashmir.
It applies on every establishment employing 20 or more persons & engaged in
industry specified in Schedule I of the Act or any other activity notified by the
Central Government.
It applies to all departments / branches of an establishment wherever situated.
Any establishment employing even less than 20 persons can be covered
voluntarily under section 1(4) of the Act.

EMPLOYEE PROVIDENT
FUND ACT 1952
E.P.F ELIGIBILITY: Employees

drawing salary / wages at the time of joining upto Rs.6,500/- per

month are governed by the provisions of the Act;

Employees

drawing salary / wages more than Rs.6,500/- per month may also
be brought under the purview of the Act at the discretion of the management
and by furnishing a joint undertaking to the Provident Fund Commissioner;

Employees

engaged through the Contractor in or in connection with the

work of an establishment are also covered under the purview of the Act.

EXAMPLE:-

EXAMPLE:Current EPF interest rate for 2014-2015 is 8.75%

REFERENCES
http://delhi.gov.in/
http://business.gov.in/
http://www.thehindubusinessline.com/
http://profit.ndtv.com/
http://www.thehindu.com/

THANK
YOU