Fixation of wages cannot be left completely upon the demand and supply as it would lead to the exploitation of the financially weaker section of the society. To prevent such things government of India created “The Minimum Wages Act 1948”. The main aim of introducing this act is that no employer shall pay less than the minimum wages prescribed by notification under the act.
Under the act the minimum wages are revised for the employments where the labours are vulnerable to exploitation. Both central and state government has the rights to revise the minimum wages for the employments falling under them.
Procedure of Fixing and Revising minimum Wages
The government can fix or revised the minimum wages by the following method
- Appointing Committees – By appointing committee or subcommittee which will hold enquiries and will advise the necessary measures to be taken.
- Through Official Gazette -By publishing its proposal for the official notification through the gazette.