Delhi Minimum Wages Rules, 1950

Background:

The Delhi Minimum Wages Rules, 1963 were framed under the powers granted by Section 30 of the Minimum Wages Act, 1948. These rules aim to regulate the payment of minimum wages and ensure fair labour practices in scheduled employments across Delhi. 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 requirements 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. Time and conditions of payment of wages and the deductions permissible from wages (Section 12 read with Rule 21)

The wages of a worker in any scheduled employment shall  be paid on a working day in the case of an establishment in which less than thousand   persons  are  employed,  before the expiry  of the seventh day (Rule 21 (1)(a), (6))

The wages of a worker in any scheduled employment shall  be paid on a working day in the case of an establishment in which 1000 or more than thousand   persons  are  employed,  before the expiry  of the tenth day, after the last day of wage period in respect of which wages are payable.( Rule 21 (1)(b), (6))

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.( Rule 21 (1)(b)(ii), (6))

The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under these rules.( Rule 21 (1)(b)(iii), (6))

Deductions which can be made from wages of a person employed in scheduled employment are prescribed in Rule  21(2) of Delhi Minimum Wages Rules, 1950(Rule 21(2),(6))

The amount of fine or deduction for damage or loss mentioned in sub-rule (3) shall be subject to such limits as may be specified in this behalf by the Chief Commissioner. All such fine imposed, deduction made, shall be recorded in the registers maintained in Forms I & II respectively. These registers shall be kept at the work-spot and maintained up-to-date. Where no fine or deduction has been imposed or made or from any employee in a wage period ‘nil’ entry shall beamed in the relevant register at the end of the wage period (Rule 21(3),(4),(6))

Annual Return (Rule 21(4)(A),(6))

Every employer shall send annually a return in Form III showing the deductions from wages as to reach the Inspector not later than the 1st February, following the end of the year to which it relates

  1. Number of hours of work that shall constitute a working day (Section 13 read with Rule 24)

The number of hours which shall constitute a normal working day will be-

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

(b)in the case of a child; 4 ½ hours. (Rule 24 (1), (5))

The working day of an adult worker shall be so arranged that inclusive of the intervals for rest, if any, it shall not spread over more than twelve hours on any day.

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(2), (3), (5))

 

  1. Weekly day of rest (Section 13 read with Rule 23)

 

Where a worker in a schedule employment in respect of which minimum rates of wages have been fixed under the Act, has worked in the scheduled employment under the same employer for a continuous period of not less than six days, he shall subject to the provisions of this rule, be allowed a day of rest every week (here-in-after referred to as “rest day”) which shall ordinarily be Sunday [Rule 23(1)]

Any such worker shall not be required or allowed to work in a scheduled employment or the rest day unless he has had or will have a substituted rest day for a whole day on one of the five days immediately before or after the rest day.

Provided that no substitution shall be made which will result in the worker working for more than ten days consecutively without a rest day for a whole day.. [Rule 23(2)]

Employees shall receive wages for rest days equal to the average daily wages of the preceding week. If an employee works on a rest day and is given a substituted rest day, they shall be paid for both the worked rest day and the substituted one at the same average rate. However, this does not apply if the minimum daily wage has been calculated by dividing the monthly wage by 26, as per the Act. Any doubts shall be referred to the Director of Industries and Labour, Delhi. Note: Average daily wages exclude overtime [Rule 23(4)]

  1. Extra wages for overtime (Section 14 read with Rule 25(1)

When a worker works in an employment for more than nine hours on any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages.

(a)in the case of employment in agriculture, at twice the ordinary rate of wages;

(b)in the case of any other scheduled employment, at double the ordinary rate of wages.

A register of overtime shall be maintained by every employer in Form IV in which entries under the columns specified therein shall be made as where overtime is worked in any establishment. The register shall be kept at the work-spot and maintained up-to-date. Where no overtime has been worked in any wage period a nil entry shall be made in the register at the end of the wage period.(Rule 25 (2)

  1. Wages of worker who works for less than normal working day (Section 15)

If an employee whose minimum rate of wages has been fixed under this Act by the day works on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day. Provided, however, that he shall not be entitled to receive wages for a full normal working day—

(i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work, and

(ii) in such other cases and circumstances as may be prescribed.

  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. Minimum time rate for wages for piece work (Section 17)

Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate.

  1. Publicity of minimum wages fixed under the act (Section 18 read with Rule 22)

Notices in Form XI-A 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 a language understood by the majority of the workers in the employment at the main entrances to the establishment and its office and shall be maintained in a clean and legible condition. Such notices in Form IX-A shall also be displayed on the notice boards of all sub-divisional and District Offices.

  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)

(i)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.

(ii)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 concessional rates. This computation shall be made in accordance with such directions as may be issued by the Central Government from time to time.

  1. Restriction on employment of children (Rule 24 (4A))

No child shall be employed or recruited to work for more than 4 ½ hours a day.

 

  1. Night Shift (Rule 24A)

Where an employee in a scheduled employment works on shift which extends beyond midnight-

(a) a holiday for the whole day for the purposes 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 employee was engaged in work, shall be counted towards previous day

  1. Form of registers and records (Rule 26)

A register of wages shall be maintained by every employer at the work-spot and kept in such form as may be notified by the State Government and shall include the following particulars-

(a)The minimum rate of wages payable to each person employed.

(b)The number of days for which each employed person worked overtime for each wage period.

(c)The gross wages of each person employed for each wage period.

(d)All deductions made from wages with an indication in each case of the kinds of deductions mentioned in sub-rule (2) of Rule 21.

(e)The wages actually paid to each person employed for each wage period and the date of payment.

 

  1. Maintenance of wages slips (Rule 26(2),(3),(4))

Wage slip in Form XI shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages.

 

  1. Maintenance of Muster Roll (Rule 26(5))

A Muster Roll shall be maintained by every employer and kept in Form V.

 

  1. Employers to provide cards to employees engaged in public Motor Transport(Rule 26 A)

(1) Every driver, conductor or any other employee in public motor transport shall, at the beginning of every month, be provided with a card in Form V-A which may be in Hindi or English whichever as understood by such employees] or in the language understood by such employees.

(2) The card shall be in the custody of such employee during the month and thereafter shall be returned to the employer who shall preserve it for a period of three years.

(3) The entries in such card shall be made each day in the presence of the employee by the employer or any person authorised by him in that behalf and employee shall produce the card whenever required for this purpose.

(4) If the employee loses his card, the employer shall, on payment of 10 paise provide him within a week with another card duly completed from his record.

  1. Preservation of Registers (Rule 26B)

All Registers and records required to be maintained under Rules 21(4)-Register of fine/damage/loss, 26(2)-Wage Slips, 26(1)-Register of Wages and the Muster Roll required to be maintained under Rule 26(5) shall be preserved for a period of three years after the date of last entry

Penalties & Punishments

  • Section 22A:

General Penalty – Any employer who contravenes any provision of this Act or of any rule or of order made thereunder shall if no other penalty is provided for such contravention by this Act, be punishable with imprisonment for 1 year or fine of Rs. 20,000 or both

  • 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 of 3 years, or with fine of Rs. 50,000, or with both
  • Any employer who contravenes provisions of Section 13 shall be punishable with imprisonment for a term of 3 years, or with fine of Rs. 50,000, or with both

Implications and Advantages:

The Delhi Minimum Wages Rules, 1950 ensure timely and fair compensation, establish clear standards for working conditions, and provide robust mechanisms for transparency and accountability. They help reduce exploitation and improve employer-employee relations by creating enforceable guidelines for wages, deductions, and overtime. For employers, adherence ensures legal compliance, avoidance of penalties, and a better reputation. For workers, these rules safeguard basic earnings and health through rest periods and regulated hours.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

To stay updated Subscribe to our newsletter today

Explore other Legal updates on the 1-Comply and follow us on LinkedIn to stay updated 

Post Views: 29

Schedule A Demo