Gujarat Minimum Wages Rules, 1961

Background:

The Gujarat Minimum Wages Rules, 1961 were framed under the powers granted to the state government under the Minimum Wages Act, 1948. These rules aim to regulate the payment of minimum wages and ensure fair labour practices in scheduled employments across Gujarat. They provide detailed procedures regarding wage fixation, payment, deductions, working hours, rest periods, and record maintenance to facilitate implementation and compliance with the Minimum Wages Act.

Applicability:

The Minimum Wages Act and Rules applies to the employees, employed in an employment as specified under Part I or Part II of the Schedule and in an employment added to either part by notification under section 27.

Compliance requirement under the Rules in accordance with the Act

  1. Minimum Rate of wages (Section 4)

Minimum rate of wages fixed or revised w.r.t scheduled employments may consists of a :-

(i) 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 ( 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

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.

  1. Wages in Kind (Section 11)

Minimum wages payable under this Act shall be paid in cash. Where it has been the custom to pay wages wholly or partly in kind, the appropriate Government being of the opinion that it is necessary in the circumstances of the case may, by notification in the Official Gazette, authorise the payment of minimum wages either wholly or partly in kind.

  1. Wages for two or more classes of work (Section 16)

Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.

  1. Payment of undisbursed amounts due to employees (Section 22D)

All amounts payable by an employer to an employee as the amount of minimum wages of the employee under this Act or otherwise due to the employee under this Act or any rule or order made thereunder shall, if such amounts could not or cannot be paid to the employee on account of his death before payment or on account of his whereabouts not being known, be deposited with the prescribed authority who shall deal with the money so deposited in such manner as may be prescribed.

  1. Contracting out (Section 25)

Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void in so far as it purports to reduce the minimum rate of wages fixed under this Act

  1. Mode of computation of the cash value of wages(Rule 20 )

(1) The retail prices at the nearest market shall be taken into account in computing the cash value of wages paid in kind and of essential commodities supplied at concession rates. 

(2) The cash value of concessions in respect of supplies of essential commodities at concession rates to employees working in employments in respect of which minimum rates of wages have been fixed under the Act shall be equal to the difference between the retail price of such commodities at the nearest market and the price charged by the employer to the employees.

  1. Time and conditions of payment of wages and the deductions permissible from wages(Rule 21)

The wage period with respect to any scheduled employment for which wages are liable to be fixed shall not exceed one month, and the wages of a worker employed in any such employment in which an employer has employed less than one thousand persons, shall be paid before the expiry of the seventh day. [Rule21(1)(i)(a)]

The wage period with respect to any scheduled employment for which wages are liable to be fixed shall not exceed one month, and the wages of a worker employed in any such employment in which employer has employed one thousand or more than one thousand shall be paid before the expiry of the tenth day after the last day of the wage period in respect of which the wages are payable. [Rule21(1)(i)(b)]

Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day after the day on which his employment is terminated. [Rule21(1)(ii)]

The wages of an employed person shall be paid to him without deduction of any kind except those authorised by or under these rules. [Rule21(1)(iii)]

Deduction from the wages of a person employed in a scheduled employment shall be of one or more kinds as mentioned in rule. [Rule 21(2)]

All such deductions, and all realisations thereof shall be recorded in a register maintained in Form C specified in the Schedule to the Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules. 2017. [Rule 21(4)]

Annual Return (Rule 21(4))

A return in Form III shall be submitted annually by the employer to such authority as may be appointed by the Commissioner of Labour, Ahmedabad, in this behalf by a notification in the Official Gazette, so as to reach the authority not later than the 1st February following the end of the year to which the return relates.

Publicity to the minimum wage fixed under the Act (Rule 21)

Notices containing the minimum rates of wages fixed together with abstracts from the Act, the rules made thereunder and the name and address of the Inspector shall be displayed in English and in Gujarati at some conspicuous and convenient place in the factory, workshop or other place of the employment concerned and shall be maintained in a clean and legible condition . The abstracts of the Act and the rules thereunder shall be in Form III-A. Such notices shall also be displayed on the notice boards of all Sub-Divisional and District Offices and at such other places, if any, as may be selected by the Inspectors

     8.  Weekly day of rest (Rule 23)

An employee in a scheduled employment in respect of which minimum rates of wages have been fixed under the Act, shall be allowed a day of rest every week which shall ordinarily be Sunday, but the employer may fix any other day of the week as the rest day for any employee or class of employees in that scheduled employment. [Rule 23(1),(5)]

Any such employee shall not be required or allowed to work in a scheduled employment on the rest day unless he has or will have a substituted rest day for a whole day on one of the five days immediately before or after the rest day. [Rule 23(2),(3),(5)]

An employee shall be granted for the rest day wages calculated at the rate applicable to the next preceding day and in case he works on the rest day and has been given a substituted rest day, he shall be paid wages for the rest day on which he worked, at the overtime rate and wages for the substituted rest day at the rate applicable to the next preceding day. [Rule 23(4),(5)]

   9.   Number of hours of work that shall constitute a working day(Rule 24)

The number of hours which shall constitute a normal workingday shall be:-

(a) in the case of an adult, 9 hours,

(b) in the case of a child, 4-1/2 hours [Rule 24(1)]

   The period of work of an adult worker each day shall be so fixed that no period shall exceed five hours and that no worker shall work for more than five hours before he had an interval for rest of at least half an hour. [Rule 24(2),(4)]

The periods for work of an adult worker shall be arranged that inclusive of his intervals for rest under sub-rule (2), they shall not spread over more than twelve hours in any day in respect of employee not being employment under a local authority as lamp lighter. [Rule 24(3)]

The periods of work in the case of a child worker shall be so arranged that it shall not spread over more than five hours in any day. [Rule 24(3A)]

The number of hours of work in the case of an adolescent shall be the same as that of an adult or a child according as he is certified to work as an adult or a child by a competent medical practitioner approved by the State Government. [Rule 24 (5)]

  10.   Night Shift (Rule 24A)

Where a worker in a scheduled employment works on a shift which extends beyond midnight :

(a) a holiday for the whole day for the purpose of rule 23 shall in his case mean a period of twenty-four consecutive hours beginning from the time when his shift ends; and

(b) the following day in such a case shall be deemed to be the period of twenty four hours beginning from the time when such shift ends, and the hours after midnight during which such worker was engaged in work shall be counted towards the previous day.

  11. Extra wages for overtime (Rule 25)

(1) When a worker works in an employment for more than nine hours on any day or in any employment other than an employment in public motor transport for more than forty-eight hours in any week or for more than the hours of work notified under sub-rule (6) of rule 24, as the case may be, he shall, in respect of overtime work, be entitled to wages:

(i) in the case of employment in agriculture at one and half times the ordinary rate of wages;

(ii) in the case of any other scheduled employment at double the ordinary rates of wages.

(2) A register showing overtime payments shall be kept in in Form B specified in the Schedule to the Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017

 

 12. Form of registers and records(Rule 26)

A register of wages shall be maintained by every employer at the workshop [in Form B specified in the Schedule to the Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017. No such register need be maintained by an employer who maintains a like register under the Payment of Wages Act, 1936. [Rule 26 (1),(3),(4)]

A wage slip in Form IV-B shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages. [Rule 26 (2),(3),(4)]

A Muster Roll shall be maintained by every employer and kept in Form D specified in the Schedule to the Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017 [Rule 26 (5)]

Every employer shall maintain a bound Inspection Book and shall produce it when so required by the Inspector. (Rule 26 A)

The registers and records prescribed under Rule 25(2) and Rule 26(1) & (5) shall be preserved for a period of 3 years after the last entry made therein ( Rule 26-D)

13. Every employee employed in public motor transport, shall, at the beginning of every month be provided with a card in Form V-A. (Rule 26-B (1) – (4))

Every employee engaged in any other scheduled employment except employment in agriculture be provided with a card in Form V-D, which may be in English or in the language understood by such employee.

 

Penalty & Punishments

Any employer who pays to any employee less than the minimum rates of wages fixed for that employee’s class of work, or less than the amount due to him under the provisions of this Act shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both

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