The constitutional validity of the Minimum Wages Act, 1948 in India has been upheld by the judiciary, and it is considered a valid piece of legislation.
- Concurrent List: The Constitution of India divides legislative powers between the central and state governments through three lists: the Union List, the State List, and the Concurrent List. The subject of “wages” falls under the Concurrent List (List III of the Seventh Schedule), which means that both the central and state governments have the authority to legislate on this subject. The Minimum Wages Act, 1948, is a central legislation that provides a framework for fixing and regulating minimum wages across the country, while states have the flexibility to set minimum wage rates for various employments within their respective territories.
- Directive Principles of State Policy: The Indian Constitution contains Directive Principles of State Policy (DPSP) that provide guidelines for the government to establish a welfare state. Article 43 of the DPSP specifically mentions that the state should endeavor to secure, among other things, a living wage for workers. The Minimum Wages Act, 1948, aligns with this constitutional directive by seeking to ensure fair wages for laborers.
- Fundamental Rights: The Minimum Wages Act, 1948, does not infringe upon any fundamental rights of citizens. It aims to protect the economic rights and interests of workers by ensuring that they receive a minimum wage for their labor, which is consistent with the principles of social and economic justice enshrined in the Constitution.
- Right to Equality: The act promotes the right to equality by ensuring that workers are not exploited and receive fair compensation for their work, irrespective of their social or economic background. It helps reduce wage disparities and promotes social justice.
- Welfare of Workers: The Constitution of India recognizes the importance of protecting the rights and welfare of workers. The Minimum Wages Act, 1948, contributes to this objective by providing a legal framework to prevent the exploitation of labor and set minimum wage standards.
- Legislative Competence: The central government has the legislative competence to enact laws related to minimum wages under the Concurrent List. States can also pass their own laws to determine minimum wages within their jurisdiction, as long as they meet or exceed the rates set by the central government.