Payment of minimum wages and maintenance of registers
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Initial Setup or Ongoing Maintenance
Ongoing compliance requirement
Filing and Maintenance Requirements
• An employer is required to, amongst other things, pay the minimum rates of wages fixed for an employee’s class of work, and maintain the following registers:
- Register of fines in Form I, containing the particulars of fines imposed on employees.
- Register of deductions for damage or loss caused to the employer in Form II, containing particulars of deductions from wages for any damage or loss caused by employees.
- Overtime register for workers in Form IV, containing the particulars of overtime work done by employees.
- Muster roll in Form V, containing the particulars of attendance of employees.
- Register of wages in Form X, containing the particulars of wages payable/ paid to employees.
• An employer is also required to file annual returns in Form III, with the concerned inspector on or before February 1st following the end of the year to which it relates.
• Any employer who contravenes the provisions of the Minimum Wages Act, amongst other things, by paying to the employees wages less than the minimum prescribed wages is punishable with (i) imprisonment for a term extending up to 6 (six) months; or (ii) fine extending up to Rs. 500 (Rupees Five Hundred only); or (iii) both.
• Any employer who fails to maintain registers or file returns prescribed by the provisions of the Minimum Wages Act is punishable with a fine extending up to Rs. 500 (Rupees Five Hundred only).
• Further, in the event the offence is committed by a company, every person who was in charge of the company at the time the offence was committed, is liable for the offence and if it is proved that the offence has been committed with the consent or connivance of or attributable to any neglect on part of any director, manager, secretary or other officer of the company, they shall also be deemed guilty of that offence.
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