Section 14 of ISMW Act : Section 14: Displacement Allowance

Explanation using Example

Imagine a construction company in State A is hiring workers from State B for a large project. Under Section 14 of The Inter-State Migrant Workmen Act, 1979, the contractor must pay each of these workers a displacement allowance when they are recruited. For example, if a worker is to be paid a monthly wage of ₹2000, the displacement allowance would be ₹1000 (50% of the monthly wage) since it is higher than the minimum of ₹75. This allowance is to help cover the costs of the worker's move and is not refundable, meaning the worker doesn't have to pay it back. It is also in addition to any wages or other payments they are entitled to receive.