The Employees’ Provident Fund Organisation (EPFO) is a non-constitutional body that promotes employees to save funds for retirement. The organisation is governed by the Ministry of Labour and Employment, Government of India and was launched in 1951.

In terms of the number of financial transactions and clientele, the EPFO is one of the largest Social Security Organisations in the world.

The schemes offered by the organisation cover Indian workers and international workers (from countries with whom the EPFO has signed bilateral agreements).

It Includes

• (a) Wages
• (b) Bonus
• (c) Gratuity
• (d) Remuneration

Short Title, Extent and Application

• This act may be called the Minimum Wages Act, 1948.
• It extents to the whole of India*.

Introduction
The law relating to minimum wages is governed by the following legislations:

• Minimum Wages Act, 1948
• Minimum Wages (Central) Rules, 1950

Objective of the Act

The objective of the Act is to provide for fixing minimum rates of wages in certain employments.
What the Act purports to achieve is to prevent exploitation of labour.

What is being prescribed is minimum wage rates which a welfare state assumes every employer must pay before he employs labour.

Applicability of the Act
The act is applicable to all employers who are employing persons in any scheduled employment.

Obligations of the Employer

• Payment of minimum wages
• Payment of overtime wages
• Provision of rest day
• Provision of substituted rest day
• Provisions regarding working hours
• Muster Roll
• Imposition of fine or making deduction for loss or damages
• Maintenance of registers and records
• Display of notice
• Settlement of claims
• Filing of annual Return
• Not to reduce wages

Offences & Penalties
Penalties for certain offences-Any employer who :

• Pays to any employees less than the minimum rates of wages fixed for that employee’s class of work, or less than the amount due to him under the provisions of this Act,
• Contravenes any rule or order made under section 13 shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to give hundred rupees, or with both. However in imposing any fine for an offence as above, the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20.