Lok Sabha Question No. 2492 (UNSTARRED), answered on 2016-05-09
Subject: Minimum Wages Act
Ministry: LABOUR AND EMPLOYMENT
Asked by: M. B. RAJESH, RAHUL RAMESH SHEWALE, C. N. JAYADEVAN, RAMESH BIDHURI, DHARMENDRA YADAV, CHANDRAKANT BHAURAO KHAIRE, G. HARI, SANJAY SHAMRAO DHOTRE, VINAYAK BHAURAO RAUT, P. KARUNAKARAN, SAKUNTALA LAGURI, CH. MALLA REDDY, ADVOCATE NARENDRA KESHAV SAWAIKAR, MANOJ RAJORIA, RAM KUMAR SHARMA KUSHWAHA, SHIVAJI ADHALRAO PATIL, RAJESH VERMA, NAGENDRA KUMAR PRADHAN, K. KAMARAAJ, GOPALAKRISHNAN CHINNARAJ

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 2492

## TO BE ANSWERED ON 09.05.2016

## MINIMUM WAGES ACT

2492. SHRI M.B. RAJESH:

SHRI RAHUL SHEWALE:

SHRI C.N. JAYADEVAN:

SHRI RAMESH BIDHURI:

SHRI DHARMENDRA YADAV:

SHRI CHANDRAKANT KHAIRE:

SHRI G. HARI:

SHRI SANJAY DHOTRE:

SHRI VINAYAK BHAURAO RAUT:

SHRI P. KARUNAKARAN:

SHRIMATI SAKUNTALA LAGURI:

SHRI CH. MALLA REDDY:

ADV. NARENDRA KESHAV SAWAIKAR:

DR. MANOJ RAJORIA:

SHRI RAM KUMAR SHARMA:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI RAJESH VERMA:

SHRI NAGENDRA KUMAR PRADHAN:

DR. K. KAMARAJ:

DR. C. GOPALAKRISHNAN:

## Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)the total number of contract/casual workers including those appointed/engaged in Government Departments and Public Sector Units in  the  country  during  each  of  the  last  three  years,  State/UT-wise  and sector-wise;
- (b)whether the Government proposes to fix Rs.10,000/- as minimum monthly wage  for  contract  workers  in  the  country  and  if  so,  the  details  thereof indicating the number of times the minimum wages of contract workers have been revised during the said period;
- (c)whether the said proposal has been opposed by various trade unions and if so, the details thereof along with the response of the Government thereto; (d)the monitoring mechanism put in place by the Government to ensure that the workers are paid minimum wages as stipulated under the Act and not
- subjected to any form of exploitation;

Contd..

- (e)whether the Government is aware that very small percentage of contract workers are covered under the Contract Labour (Regulation and Abolition) Act, 1970, out of crores of contract workers in the country and if so, the reasons therefor and the action taken/being taken by the Government in this regard; and
- (f)whether  instances  of  violation  of  Minimum  Wages  Act,  1948  have  been reported/come to the notice of the Government during the said period and if so, the details thereof and the action taken thereon, State/UT-wise?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a): The total number  of contract labourers both in organized and unorganized  sector  engaged  on  the  basis  of  license  issued  under  Contract Labour(Regulation  &  Abolition)  Act,  1970  in  the  Central  Sphere  for  last  3 years is given below:-

| Year    |   No. of Contract Labour |
|---------|--------------------------|
| 2012-13 |                  1804389 |
| 2013-14 |                  1967747 |
| 2014-15 |                  1903170 |

The data in respect of casual workers in not centrally maintained.

- (b) & (c): Considering  the  reality  of  industrial  practices  as  well  as  the wage security for the contract workers, proposal for rationalization of wages for  contract  workers,  so  as  to  ensure  that  the  minimum  monthly  wage  of such workers does not fall below Rs. 10,000/-, was under consideration of the Government.  After  due  deliberation,  a  draft  Notification  for  amending  Rule 25(2)(iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 has  already  been  issued  to  give  effect  to  the  above  stated  objective  and comments of stakeholders were solicited vide Notification No. G.S.R. 368(E) dated  30.03.2016.  All  comments/suggestions  received  from  stakeholders within the prescribed time limit are under examination. The final notification will  accordingly  be  issued  after  consideration  of  the  suggestions  and approval of the competent authority.

The  minimum  wages  for  the  Contract  Workers  employed  as  Scheduled Employment are revised twice in a year i.e. in April and October by adding Variable Dearness Allowance in the basic rate.

Contd..

(d): A well-established Central Industrial Relations Machinery (CIRM) is in place to enforce various labour laws including the Minimum Wages Act, 1948.  The  country-wide  CIRM  network  of  Dy.  Chief  Labour  Commissioners and  Regional  Labour  Commissioners  under  the  control  of  Chief  Labour Commissioner (Central) is mandated to settle the complaints/claims arising out  of  non-payment  or  payment  of  lower  wages.  Besides,  a  grievance redressal mechanism exists in the States/UTs in respect of the grievances pertaining to establishment coming under the State Sphere.

- (e): The Contract Labour (Regulation & Abolition) Act, 1970 does not cover those contract workmen who are employed in an establishment where less  than  twenty  workmen  were  employed  on  any  day  of  the  preceding twelve months. However, the number of contract labourers engaged on the basis of license issued under Contract Labour (Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years has been furnished above in reply to part (a) of question. The details of inspections conducted under Minimum Wages Act,

## (f): 1948 is given below :-

| Particulars                    |   2013-14 |   2014-15 |   2015-16 |
|--------------------------------|-----------|-----------|-----------|
| No. of inspections conducted   |     13099 |      6582 |      9803 |
| No. of irregularities detected |    129341 |     68747 |     75938 |
| No. of prosecutions launched   |      5167 |      3774 |      1549 |
| No. of convictions             |      5074 |      2782 |      1476 |

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