Understanding the Difference Between the Payment of Wages Act and Minimum Wage Act: Can You Help?

Hi, can anyone tell me what is the difference between the Payment of Wages Act and the Minimum Wage Act.

Thanks

The Minimum Wages Act is an Act to enforce minimum rates of wages in different scheduled industries. This Act empowers the state government to fix minimum rates of wages for employees employed in different industries. It makes it obligatory for employers to pay at least the minimum rates of wages as fixed by the government.

The Payment of Wages Act is an Act to regulate the payment of wages by fixing wage periods, modes of payment of wages, and restricting deductions from wages. An employer has to establish a wage period that should not exceed one month. Additionally, wages must be paid in currency notes and not in kind. The Act also provides a list of permissible deductions, and any deduction not specified in the Act will be considered a wrongful deduction.

Regards,
Madhu.T.K

Hi, can anyone tell me what the difference is between the Payment of Wages Act and the Minimum Wage Act?

Minimum Wage Act

Minimum wage refers to the lowest wage permitted by law for one month in your state.

Payment of Wages Act

Payment of wages refers to the requirement to pay staff before 7 and after 5 each day.

Please let me know why the "Register of Fines" and "Register of Deduction for Damages & Loss" are maintained under the MW Act. What is the purpose of these registers under the MW Act? As far as the Payment of Wages Act is concerned, the purpose of maintaining the register is understood, but I am confused about the use of these registers under the MW Act. Please clarify.

Thanks,
Dinesh Kumar

Understanding the Applicability of Wage Acts

The Minimum Wages Act is applicable to scheduled employment. Similarly, the Payment of Wages Act is also applicable to such employments as notified by the appropriate government from time to time. According to section 22F of the Minimum Wages Act, once a particular industry/work is included in the schedule, the said employment will also be covered by the provisions of the Payment of Wages Act.

Register Maintenance Requirements

If both Acts require the same type of registers to be maintained, you only need to maintain one register. In almost all labor Acts, the need for an attendance register is evident. However, this does not imply that multiple attendance registers should be kept.

Regards,
Madhu.T.K

Thank you, Madhu Sir, for your quick response. But, Sir, I think you misunderstood me. My query is why we need to maintain a fine register under the MW Act. The MW Act is designed to establish the minimum wage set by the government. What purpose does this register serve under the MW Act? How is it related to minimum wages if fines are imposed?

Regards,
Dinesh Kumar

Under the Central Rules, there is no such register of fines, as I understand. However, the same is present under some State Rules. The objective of the same is not known to me because the Minimum Wages Rules should not have anything to do with the collection of fines, which is a matter covered by the Payment of Wages Act. However, as already mentioned, you need to follow either of these and can maintain only one format of the register.

Regards,
Madhu.T.K