Effective Date



 Gazette Notifications

Released Date: 4th May, 2018


The Minimum Wages (Delhi) Amendment Act, 2017

As per notification published in the official Delhi Gazette dated 5th May 2018, the Government of National Capital Territory of Delhi has amended the Minimum Wages Act, 1948 in its application to the National Capital Territory of Delhi. As per the amendment the definition of State Government has been stated. The amendment has also listed components to be considered in fixing or revising the minimum rates of the wages. The important changes which will effect employer have been summarised in the following points: (i) Payment of wages shall compulsorily be made by depositing the same in the bank account of the employees, electronically or by account payee cheque. Cash payment is only allowed to daily wages workers and in case of special circumstances like natural calamities, fire in the establishment etc. (ii) Earlier overtime payment had to be paid as fixed under the Act or under any law of the appropriate government without any minimum limit, now this overtime rate cannot be fixed below twice the normal rate of wages. (iii) Employee cannot be retrenched, dismissed, terminated or laid-off without the prior approval of the Authority during the pendency of the proceeding or inquiry for claims under Section 20 (2). (iv) Penalty under Section 22 for payment of less than the minimum rates has been drastically increased. Earlier it was imprisonment which may extend to six months, or with fine which may extend to five hundred rupees, or with both. Now it is imprisonment of three years, or with fine of fifty thousand rupees, or with both. (v) Penalty for contravening any provision of this Act or of any rule or order under this act has been drastically increased. Earlier it was only fine which may extend to five hundred rupees. Now it is imprisonment for a term of one year, or with fine twenty thousand rupees or with both. (vi) A new Section for application to the National Capital Territory of Delhi has been inserted stating that the employer shall Upload the employee data on website or web portal in the manner as may be prescribed

Effective Date: 5th May, 2018

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