Section 11 of MWA, 1948 : Section 11: Wages In Kind

Explanation using Example

Example Scenario: Payment of Minimum Wages in a Factory

Imagine a factory in Uttar Pradesh where workers are employed for manufacturing garments. As per Section 11 of the Minimum Wages Act, 1948, the employer is required to pay these workers their minimum wages.

In accordance with the state amendment by Uttar Pradesh, the factory owner must pay the workers through cheques, NEFT, ECS, or other banking solutions. However, for temporary or casual workers, if they give written consent and provide a self-attested copy of their Aadhar card, the employer is allowed to pay them in cash, but only up to ₹5000 once every three months.

For instance, a casual worker named Aman has agreed to work on a short-term project for the factory. After completing his work, Aman provides written consent and his Aadhar card details to receive his wages in cash. The employer can pay Aman his due wages in cash since it does not exceed ₹5000 and the payment is within a three-month interval.