Amendment status not verified — confirm the current text below against the official source.
Minimum rate of wages.— 9(3) The Punjab Minimum Wages Rules, 1950 (1) Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under section 3 may consist of— (i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the ‘cost of living allowance’); or (ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorised; or (iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any. (2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rates shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate Government. Section 4 is a definite indication that basic wage is an integral part of the minimum wage. It is not correct to say that a minimum wage under section 4(1) necessarily should consist of basic wage and dearness allowance. The language of section 4 does not lend itself to such an interpretation. On the plain terms of section 4(1) it is clear that the payment of dearness allowance would arise only if the basic wage fixed for a category of workmen fell short of the minimum wage which the State Government has to fix taking into consideration the needs of the workers’ family consisting of three consumption units; Karnataka Film Chamber of Commerce, Bangalore v. State of Karnataka, 1986 Lab 1C 1890: LLR 1986 Kant 2183. 1[5. Procedure for fixing and revising minimum wages.— 1 Subs. by Act 30 of 1157, sec. 4, for section 5 (w.e.f. 17-9-1957). Case Law (1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate Government shall either— (a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or (b) by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date, not less than two months from the date of the notification, on which the proposals will be taken into consideration. (2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1), or as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue: Provided that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub- section (1), the appropriate Government shall consult the Advisory Board also.] (i) The State issued a notification to pay separate allowance in addition to the basic wages, which was not challenged as to its validity by the appellants. Held, they have to pay the ‘wages’ now being paid and in addition to that the minimum rate of “cost of living allowance” is to be paid by them separately, as per the notification, even if they are paying higher rate of wages; Krishna Flour Mills v. Commissioner of Labour, 1997 (77) FLR 241. (ii) What is contemplated by the Act to be notified under section 5(i)(b) is no doubt draft proposals. The objection to draft proposals can be made both by employers and employees as well. Thus, if the employees had exercised their privilege to represent and ask for higher wages and if eventually the State authorities had adopted higher rates of minimum wages, that cannot be found Case Law 9(3) The Punjab Minimum Wages Rules, 1950 fault with; T.G. Lakshmaiah Setty & Sons, Adoni v. State of Andhra Pradesh, 1981 Lab 1C 690. (iii) It is necessary that the appropriate Government in issuing notifications for prescribing the rates of minimum wages under the Minimum Wages Act, 1948, punctiliously follows the letter of law and strictly complies with all the procedures laid down in the Act; Bijay Unchana Paul v. State of Assam, 1969 (19) FLR 11.