Maternity, Gratuity & Wages Acts — Set 1

Correct Answer: B. Fair remuneration for workers

The correct answer is Fair remuneration for workers. The Minimum Wages Act, 1948 was enacted to provide fair and adequate wages to workers in scheduled employments, protecting them from wage exploitation and ensuring a basic standard of living. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. Rege Committee

The correct answer is Rege Committee. The Rege Committee recommended scientific approaches to minimum wage determination in India. The committee emphasized the need for linking minimum wages to subsistence levels and consumer price indices. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. State Government

The correct answer is State Government. Under the Minimum Wages Act, 1948, the State Government is responsible for fixing and revising minimum wages for different scheduled employments within its jurisdiction. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. Every 5 years

The correct answer is Every 5 years. Under the Minimum Wages Act, 1948, wages are generally revised every five years or earlier if there is a significant change in economic conditions or cost of living index. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. Bonus

The correct answer is Bonus. While basic wage, dearness allowance, and house rent allowance are components of minimum wage, bonus is typically not included in the minimum wage structure as it is a separate incentive. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. 1972

The Payment of Gratuity Act was enacted in 1972. It provides for the payment of gratuity to employees who have rendered continuous service of not less than five years. The Act applies to factories, mines, oilfields, plantations, ports, railway companies, shops, and establishments. Gratuity is a form of retirement benefit recognizing long-term service.

Correct Answer: A. 15 days' wages per year

Under the Payment of Gratuity Act, gratuity is calculated at the rate of 15 days' wages for every completed year of service or part thereof in excess of six months. The wages used for calculation are the last drawn wages. The formula is: (Last drawn wages × 15 × Number of years of service) / 26. The maximum gratuity payable was raised to Rs.20 lakh.

Correct Answer: B. 30 days

Under Section 7 of the Payment of Gratuity Act, gratuity shall become payable to an employee on the termination of employment. The employer must determine the amount within 30 days. If there is any dispute, the employer must deposit the disputed amount with the controlling authority. Delay in payment attracts interest at the rate prescribed by the government.

Correct Answer: B. 5 years

Under Section 4 of the Payment of Gratuity Act, an employee shall be entitled to payment of gratuity on the termination of employment after rendering continuous service for not less than five years. However, the five-year condition is not required if termination is due to death or disablement. This minimum service requirement distinguishes gratuity from other terminal benefits.

Correct Answer: C. 26 weeks

The Maternity Benefit (Amendment) Act 2017 increased the paid maternity leave from 12 weeks to 26 weeks for the first two children. For women who have two or more surviving children at the time of delivery, the leave is 12 weeks. Adoptive and commissioning mothers are also entitled to 12 weeks of maternity benefit. This amendment aligns India with ILO Convention 183.