Amendment to Minimum Wages Act referred to GoM

The Union Cabinet today is understood to have referred to a GoM a proposal to amend the Minimum Wages Act which seeks to give statutory recognition to minimum wages and to make it applicable to all forms of employment.
The amendment bill also seeks to remove restriction of 1000 or more workers for an employment to come under the purview of the Act and revision of the national floor level minimum wage at intervals of five years.
It also proposes to introduce a component of variable dearness allowance on the basis of the rise in consumer price index for industrial workers every six months.

Sources said there were differences of opinion in the Cabinet on some of the issues, following which it was referred to a GoM to be headed by Defence Minister A K Antony.
The amendment also seeks to enhance fine prescribed for contravention of certain provsions of the Act from Rs 500 to Rs 5000 on first conviction and with a imprisonment for a term which extends to one year and up to Rs 10,000 in case of second or subsequent conviction.
Further, doing away with fixation of different rates of wages for adults, adolscent and apprentices would provide equity and inclusiveness of all workers irrespective of age, sex etc, they said.

On February 21 last year, the Cabinet had cleared a proposal to make the minimum wages announced by the Centre for workers in unorganised sector statutory for all states so as to bring parity in wages paid.
The proposal put up before Cabinet today was aimed at bringing some more provisions in the amendment Bill, sources said.
The national floor level minimum wage is Rs 115 per day but since it is not binding on state governments and employers, the Centre merely advises the states to raise the wages so that they are on par with the national floor level.