Background:
The Jammu & Kashmir Minimum Wages Rule, 1972 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 Jammu & Kashmir. 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
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.
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.
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.
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.
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
The retail price at the nearest market shall be taken into account in computation the cash value of wages paid in kind and of essential commodities supplied at concession rates. This computation shall be made in accordance with such directions as may be issued by the Government from time to time.
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)(i)(a)]
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 1000 persons are employed, before the expiry of the tenth day, after the last day of wage period in respect of wages are payable. [Rule 21(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. [Rule 21(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. [Rule 21(1)(iii)]
Deductions from the wages of a person employed in a scheduled employment shall be of the kind as prescribed in Rule 21(1)(iii)(2) of Jammu & Kashmir Minimum Wages Rule, 1972 [Rule 21(1)(iii)(2)]
The total amount of deduction which may be made in any wage period, from the wages of an employee shall not exceed
(i) 75 percent of such wages in case where such deduction are wholly or partly made for payments to consumer co-operative stores run by any co-operative society and
(ii) 50 per cent of such wages in any other case. [Rule 21(1)(iii)(2A)]
Any person desiring to impose a fine on an employed person or to make a deduction for damage or loss caused by him shall explain to him personally and also in writing the act or omission or the damage or loss in respect of which the fine or deduction is proposed to be imposed or made and give him an opportunity to offer any explanation in the presence of another person. The amount of the said fine or deduction shall also be intimated to him. [Rule 21(1)(iii)(3)]
All fines and deductions for damage or loss shall be recorded in the register maintained in Form I. [Rule 21(1)(iii)(4)]
Every employer shall send annually a return in Form III so as to reach the Inspector, not later than the 1st February following the end of the year.
Notices in Form XI containing the minimum rates of wages fixed together with extracts of 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 entrance to the establishment and at its office and shall be maintained in a clean and legible condition.
Subject to the provisions of this rule, 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 (hereinafter referred, to as the rest day) 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: Provided that the employee has worked in the scheduled employment under the same employer for a continuance period of not less than six days [Rule 23(1)]
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: Provided that no substitution shall be made which will result in the of employee working for more than ten days consecutively without a rest day for a whole day [Rule 23(2)]
Where in accordance with the foregoing provisions of this rule, any employee works on a rest day and has been given a substituted rest day on anyone of the five days before or after the rest day, the rest day shall for the purpose of calculating the weekly hours of work be included in the week in which the substituted rest day occurs. [Rule 23(3)]
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)]
The number of hours which shall constitute a normal working days hall be:
(a) in the case of an adult, 9 hours.
(b) in the case of a child, 4-1/2 hours. [Rule 24(1),(4),(6)]
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. [Rule 24(2),(4),(6)]
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 Government. [Rule 24(3),(4),(6)]
No child shall be employed or permitted to work for more than 4-1/2 hours on any day. [Rule 24(4),(6)]
Where a worker in a scheduled employment works on a 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 workers were engaged in work shall be counted towards the previous day
(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 over time work, be entitled to wages,
(a) in the case of employment in Agricultural, at one and a half time the ordinary rate of wages. [Rule 26(1)(a),(3)]
A register of overtime wages shall be maintained by every employer in Form IV in which entries under the columns specified therein shall be made as and when overtime is worked in any establishment. [Rule 26(2),(3)]
A register of wages shall be maintained by every employer at the work-spot in Form IV [Rule 27(1),(3),(4)]
A wage slip in Form XIII shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages. [Rule 27(2),(3),(4)]
A muster Roll shall be maintained by every employer at the works and kept in Form V [Rule 27(5)]
A register required to be maintained under Rules 21 (4), 26 (2) and 27 (1) and the muster roll required to be maintained under Rule 27 (5) shall be preserved for a period of three years after the date of last entry made therein.
Penalties & Punishments
Implications and Advantages
The Jammu & Kashmir Minimum Wages Rule, 1972 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.
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