The Act applies to persons engaged in scheduled employments or in specified class of work in respect of which minimum wages have been fixed.

No employee can give up by contract or agreement his rights insofar as it purports to reduce the minimum rates of wages fixed under the Act.

II. Definition of wages

(1)

"Wages " means all remuneration payable to an employed person on the fulfilment of his contract of employment [and includes house rent allowance]. [Added by G.S.R. 109, dated 14-1-1959.] It excludes-

(i) the value of any house-accommodation, supply of light, water, medical attendance or any other amenity or any service extended by general or special order of the appropriate Government;

(ii) contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of Social Insurance;

(iii) the travelling allowance or the value of any travelling concession;

(iv) the sum paid to the person employed to defray special expenses entailed by him by nature of his employment;

(v) gratuity payable on discharge.

(2)

The minimum rate of wages may consist of-

(i) a basic rate of wages and special allowance called the cost of living allowance;

(ii) a basic rate of wages with or without a cost of living allowance and the cash value of any concessions, like supplies of essential commodities at concession rates; and

(iii) an all-inclusive rate comprising basic rate, cost of living allowance and cash value of concession, if any.

(3)

The minimum wages payable to employees of scheduled employments, notified under section 5, read with section 3 or as revised from time to time under section 10, read with section 3, may be-

(a) a minimum time rate;

(b) a minimum piece rate;

(c) a guaranteed time rate;

(d) an overtime rate;