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President Ram Nath Kovind approves Minimum Wages (Delhi) Amendment Act, 2017

As per the amendment, the employers violating labour rules in Delhi will now face fine ranging from Rs 20000 to 50000 and jail term of one to three years.

May 9, 2018 11:25 IST
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The Minimum Wages (Delhi) Amendment Act, 2017 was officially notified on May 4, 2018 following the approval of the Bill by President Ram Nath Kovind on April 26, 2018.

This new legislation amends the Minimum Wages Act, 1948 and was passed by the Delhi Assembly on August 10, 2017. The bill was first tabled in 2015.

Provisions of the Bill


• As per the amendment, the employers violating labour rules in Delhi will now face fine ranging from Rs 20000 to 50000 and jail term of one to three years.

• The employer will upload the employee data on website or web portal in the manner as prescribed.

• The court, before which the prosecution complaint is made under Section 22 of the Act, will be required to dispose it off within a month from the date of filing.

• The rate of payment for overtime work will be not less than two times of the normal rate of wages fixed under the Act or under any law of the appropriate government, whichever is higher.

Timeline of the Bill

  • The Aam Aadmi Party (AAP) government had first tabled the amendment Bill on December 3, 2015 to increase penalties for denial of minimum wages.
  • However, the legislation was sent back to the government to re-introduce the Bill with some changes in the Assembly.
  • Finally, after some changes, including the definition of the term Delhi government, the Bill was again introduced and passed in 2017.


Significance

The amended law will act strongly against the employers who do not pay full minimum wages. The Department of Law, Justice and Legislative Affairs of the Delhi also issued a notification, making it mandatory for employers to pay remuneration either electronically or through cheques, except in some special circumstances.

Hike in minimum wages


In March 2017, Lt Governor Anil Baijal approved the Delhi Government's decision to hike the minimum wages of unskilled, semi-skilled and skilled workers by 37 percent.

For an unskilled worker, the minimum wages is Rs 13350 per month while for semi-skilled, it is Rs 14698. The minimum wages for skilled persons is Rs 16182 in Delhi.

 

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