Understanding the Difference Between Minimum Wages Act and Payment of Wages Act: Why Amendments Matter

What is the difference between the Minimum Wages Act and The Payment of Wages Act? Why was the Minimum Wages Act amended? If they wish to add amendments, they can add them in the Wages Act itself.

Thank you.

It's a nice question you raised. Differences are as follows:

Payment of Wages Act - 1936

The main objectives of the act are:
- To regulate the payment of wages by fixing the responsibility on the factory manager.
- To prevent unauthorized deductions from wages such as fines and penalties.
- To avoid unnecessary delays in the payment of wages by fixing the wage period.

Minimum Wages Act - 1948

The objective of the act is:
- To prevent the exploitation of workers by employers through the statutory obligation to pay minimum wages.
- To fix and revise the minimum rates of wages for scheduled employments.

In other words, the Minimum Wages Act ensures the payment of minimum wages to workers to prevent employer exploitation through low wages, while the Payment of Wages Act ensures that employers pay wages on time without any unauthorized deductions.

Hope this answers your question.

With Regards,
Mr. Thumbs Up

These acts are age-old and are among the very primary legislations of the country. Of course, the present Government of India (GoI) has realized the need for a comprehensive labor policy and laws, and has taken up issues of merging and consolidating some of these laws, which are cogently interrelated, and repealing some very old laws and acts that are not relevant nowadays. Soon, we'll hear that such measures become a reality. For a comparison of these two acts regarding your query, it's better to search the cited links or buy the bare acts and read them for yourself to use as a reference.

Regards, Kumar S.