Minimum Wages for various employment roles

Minimum wages

Under the provisions of the Minimum Wages Act, 1948, both Central and State Governments are appropriate Governments to fix, review and revise the minimum wages of the workers employed in the scheduled employments under their respective  jurisdictions. Presently, there are 45 scheduled employments in the Central Sphere while in the State Sphere the number of such employments is 1709.

The Central Government has notified the revision of minimum wages for the scheduled employments in the Central sphere on 19.01.2017. There has also been a revision in the Variable Dearness Allowance (VDA) w.e.f 1.10.2021. The revised minimum wages for scheduled employment under the Central sphere w.e.f. are shown in the table below:-

(Wages in Rs. per day) w .e f. 01.10.2021

* Per 2.831 cubic meters or 100 cubic feet

** Per truck load of 5.662 cubic meters or 200 cubic feet

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Social Security laws related to employment

The principal social security laws enacted in India are the following:

• The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement.
• The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations. As per the Employees' Provident Funds (Amendment) Scheme 2014 the wage ceiling for coverage under the scheme has been increased from Rs 6500 to Rs 15000 per month.
• The Employees' Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability.
• The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.
• The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers.
• Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.
• Employees Pension Scheme 1995 came into force on 16 November, 1995 and applies to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies. The Scheme was amended in 2014 to increase the wage ceiling for coverage under the scheme from Rs 6500 to Rs 15000 per month. Under the scheme, a guaranteed minimum pension of Rs 1000 per month was launched in September 2014.

Social Security to the workers in the organized sector

Social Security to the workers in the organized sector is provided through five Central Acts namely :-

• Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
• Employees’ State Insurance Act, 1948.
• Payment of Gratuity Act, 1972.
• Maternity Benefit Act, 1961.
• Employee’s Compensation Act, 1923.

Employment Generation in India

Anti-poverty strategy comprises of a wide range of poverty alleviation and employment generation programmes, many of which have been in operation for several years and have been strengthened to generate more employment, create productive assets, impart technical and entrepreneurial skills and raise the income level of the poor. Under these schemes, both wage employment and self-employment are provided to the people below the poverty line. From 1998-99, various poverty alleviation and employment generation programmes are grouped under two broad categories of

• Self-Employment Schemes
• Wage Employment Schemes.

Unorganized Sector Workers in India

‘Unorganized Sector Worker” means a person who works for wages or income; directly or through any agency or contractor; or who works on his own or her own account or is self employed; in any place of work including his or her home, field or any public place; and who is not availing of benefits under the ESIC Act and the P.F Act, individual insurance and pension schemes of LIC, private insurance companies, or other benefits as decided by the Authority from time to time.

Employment Generation – Government Initiatives

• Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA). The Ministry of Rural Development, Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA) aims at enhancing livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. The Act came into force on February 2, 2006. All rural districts are covered under Mahatma Gandhi NREGA.
• Sampoorna Rojgar Yojana. The primary objective of the Scheme is to provide skilled and local employment and thereby improve skills levels in all rural and urban areas. The scheme is open to all rural and urban unemployed educated youth who are in need of employment and desire to do manual and skilled work in and around his locality/village/habitat. Beneficiary gets fixed based payment of wages and incentives based on performance.
• Aajeevika - National Rural Livelihoods Programme. Aajeevika was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011. NRLM has set out with an agenda to cover 7 Crore rural poor households, across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats and 6 lakh villages in the country through self-managed Self Help Groups (SHGs) and federated institutions and support them for livelihoods collectives in a period of 8-10 years. In addition, the poor would be facilitated to achieve increased access to their rights, entitlements and public services, diversified risk and better social indicators of empowerment.
• Prime Minister's Employment Generation Programme (PMEGP). Prime Minister’s Employment Generation Programme (PMEGP) scheme announced on 15th August, 2008. This is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. KVIC is the Nodal Agency at National Level. The primary objective is to generate continuous and sustainable employment opportunities in Rural and Urban areas of the country.

Source : Ministry of Labour and Employment, GoI

Related resources

1. The Mahatma Gandhi National Rural Employment Guarantee Act 2005 - Report to the people, February 2016
2. Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (NRLM)
3. Prime Minister's Employment Generation Programme (PMEGP)