Section 3 of MWA, 1948 : Section 3: Fixing Of Minimum Rates Of Wages

Explanation using Example

Imagine a scenario where a new textile factory opens in a small town in India. The factory employs 200 workers, most of whom are women from the local area. The factory is engaged in an employment specified in Part I of the Schedule of The Minimum Wages Act, 1948. The State Government, as the appropriate Government, is responsible for ensuring fair wages for these workers.

In accordance with Section 3(1) of the Act, the State Government decides to fix the minimum rates of wages for these employees. After conducting a thorough review, including considerations of the cost of living and other socio-economic factors, the Government sets a minimum time rate for the workers, ensuring that they are paid a fair wage for each hour of work.

Five years later, as mandated by Section 3(1)(b), the State Government reviews the minimum wage rates to determine if they need to be revised. They find that due to inflation and increased living costs, an adjustment is necessary. Consequently, the minimum wages are increased to reflect the current economic conditions, thereby protecting the workers' purchasing power.

Additionally, the State Government uses the flexibility provided by Section 3(3)(a) to set different minimum wages for various classes of work within the factory, recognizing the differing skill levels and responsibilities associated with each role.

This example illustrates how The Minimum Wages Act, 1948, serves as a tool for the Government to ensure that workers are compensated fairly for their labor, promoting social justice and economic equity.