Section 3 — Fixing of minimum rates of wages.

3. Fixing of minimum rates of wages.—3[(1) The appropriate Government shall, in the manner 

hereinafter provided,—  

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[(a) fix the minimum rates of wages payable to employees employed in an employment specified 

specified in Part I or Part II of the Schedule and in an employment added to either Part by notification 

under               section 27: 

Provided that the appropriate Government may, in respect of employees employed in an 

employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this 

                                                           
1. Ins. by Act 30 of 1957, s. 2. 

2. Subs. by the A.O. 1950, for “Crown”. 

3. Subs. by Act 26 of 1954, s.3, for sub-section (1). 

4. Subs. by Act 31 of 1961, s. 2, for clause (a). 



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clause for the whole State, fix such rates for a part of the State or for any specified class or classes of 

such employment in the whole State or part thereof;] 

(b) review at such intervals as it may think fit, such intervals not exceeding five years, the 

minimum rates of wages so fixed and revise the minimum rates, if necessary: 

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[Provided that where for any reason the appropriate Government has not reviewed the minimum 

rates of wages fixed by it in respect of any scheduled employment within any interval of five years, 

nothing contained in this clause shall be deemed to prevent it from reviewing the minimum rates after 

the expiry of the said period of five years and revising them, if necessary, and until they are so revised 

the minimum rates in force immediately before the expiry of the said period of five years shall 

continue in force.] 

(1A) Notwithstanding anything contained in sub-section (1), the appropriate Government may refrain 

from fixing minimum rates of wages in respect of any scheduled employment in which there are in the 

whole State less than one thousand employees engaged in such employment, but if at any time, 
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appropriate Government comes to a finding after such inquiry as it may make or cause to be made in this 

behalf that the number of employees in any scheduled employment in respect of which it has refrained 

from fixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of 

wages payable to employees in such employment 
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[as soon as may be after such finding].] 

(2) The appropriate Government may fix,— 

(a) a minimum rate of wages for time work (hereinafter referred to as “a minimum time rate”); 

(b) a minimum rate of wages for piece work (hereinafter referred to as “a minimum piece rate”); 

(c) a minimum rate of remuneration to apply in the case of employees employed on piece work 

for the purpose of securing to such employees a minimum rate of wages on a time work basis 

(hereinafter referred to as “a guaranteed time rate”); 

(d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum 

rate which would otherwise be applicable, in respect of overtime work done by employees 

(hereinafter referred to as “overtime rate”).  

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[(2A) Where in respect of an industrial dispute relating to the rates of wages payable to any of the 

employees employed in a scheduled employment, any proceeding is pending before a Tribunal or 

National Tribunal under the Industrial Disputes Act, 1947 (14 of 1947) or before any like authority under 

any other law for the time being in force, or an award made by any Tribunal, National Tribunal or such 

authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the 

scheduled employment is issued during the pendency of such proceeding or the operation of the award, 

then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised 

shall not apply to those employees during the period in which the proceeding is pending and the award 

made therein is in operation or, as the case may be, where the notification is issued during the period of 

operation of an award, during that period; and where such proceeding or award relates to the rates of 

wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be 

fixed or revised in respect of that employment during the said period.] 

(3) In fixing or revising minimum rates of wages under this section,— 

(a) different minimum rates of wages may be fixed for— 

(i) different scheduled employments;  

(ii) different classes of work in the same scheduled employment;  

(iii) adults, adolescents, children and apprentices; 

                                                           
1. Ins. by Act 30 of 1957, s. 3. 

2. Certain words, brackets and figure omitted by Act 31 of 1961, s. 2. 

3. Subs. by s. 2, ibid., for certain words. 

4. Ins. by s. 2, ibid. 

 



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(iv) different localities;  

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[(b) minimum rates of wages may be fixed by any one or more of the following wage-periods, 

namely:— 

 (i) by the hour, 

(ii) by the day, 

(iii) by the month, or 

(iv) by such other larger wage-period as may be prescribed; 

and where such rates are fixed by the day or by the month, the manner of calculating wages for a month 

or for a day, as the case may be, may be indicated:]  

Provided that where any wage-periods have been fixed under section 4 of the Payment of Wages Act, 

1936 (4 of 1936), minimum wages shall be fixed in accordance therewith.