Minimum Wages Ordinance, 1961

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THE MINIMUM WAGES ORDINANCE, 1961 
 
 
 
 
 
 
CONTENTS 
1  Short title, extent and commencement 
2  Definitions 
3  Establishment of Minimum Wages Boards 
4  Recommendation of minimum rates of wages for unskilled and Juvenile Workers 
5  Recommendation of minimum rates of wages for workers with respect to particular industries 
6  Power to declare minimum rates of wages 
7  Periodical review of minimum rates of wages 
8  Constitution of the minimum wages council 
9  Prohibition to pay wages at a rate below the minimum rate of wages 
10  Cognizance of offences 
11  Protection of the proceedings of a Board or the Council 
12 Powers of Boards, etc. to collect information 
13  Certain powers of Court to Boards, etc. 
14  Chairmen, etc. deemed to be public servants 
15  Bar to legal proceedings 
16  [Omitted] 
17  Rules relating to Boards 
18  [Omitted] 

 
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THE MINIMUM WAGES ORDINANCE, 1961 
 
ORDINANCE NO.  XXXIX OF 1961 
 
[29th September, 1961] 
 
An Ordinance to provide for the regulation of minimum rates of wages for workers employed in 
certain industrial undertakings. 
 
 WHEREAS it is expedient to provide for the regulation of minimum rates of wages for 
workers employed in certain industrial undertakings, and for matters ancillary thereto ; 
 
 NOW, THEREFORE, in pursuance of the Proclamatio n of the seventh day of October, 1958, 
and in exercise of all powers enabling him in that behalf, the President is pleased to make and 
promulgate the following Ordinance :— 
 
 1. Short title, extent and commencement.—(1) This Ordinance may be called the Minimum 
Wages Ordinance, 1961. 
 
  (2) It extends to the whole of Pakistan. 
 
  (3) It shall come into force at once. 
 
 2. Definitions .—In this Ordinance, unl ess there is anything repugnant  in the subject or 
context,— 
 
 (1) “adult” has the same meaning as in cl ause (b) of section 2 of the Factories Act, 1934 
(XXV of 1934) ; 
 
 (2) “Board” means a Minimum Wages Board established under section 3; 
 
 (3) “Council” means the Minimum Wages Council constituted under section 8; 
  
 (4) “employer” means any person who empl oys either directly or through another person, 
whether on behalf of himself or any other person, any person for whom a minimum rate of wages 
may be declared under this Ordinance, and includes__  
 
 (a) in relation to a factory, a managing agent or other per son who   has ultimate 
 control over the affairs of the factory ; and 
 
 (b)  in other cases, any person responsible to the owner for supervision and control 
 of such worker or for payment of his wages ; 
 
 (5) “factory” means a factory as defined in clause (j ) of section 2 of the Factories Act, 1934 
(XXV of 1934), and includes any place deemed to be a factory under sub -section (3) of section 5 
thereof ; 
  
 
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 (6) “ industry”, with its grammatical variations and cognate expressions, means an industry as 
defined in 1[clause (xiv) of section 2 of the industrial Relations Ordinance, 1969 (XXIII of 1969) , 
and includes a plantation - as defined in clause (iii) of section 2 of the Payment of Wages Act, 1936 
(IV of 1936) ; 
 
 (7) “ juvenile worker” means a worker who is not adult ; 
  
 (8) “wages” means all remuneration capable of being expressed in terms of money, which 
would, if the terms of contract of employment, express or implied , were fulfilled, be payable to  a 
person employed in respect of his employment or of w ork done in such employment, but does not 
include__ 
(a)  any contribution paid by the employer in respect of such person under any 
scheme of social insurance or to a pension fund or provident fund ; 
(b) any travelling allowance or the value of any travelling concession ; 
(c)  any sum paid to such person to defray special expenses incurred by him in 
respect of his employment ; 
(d)  any sum paid as annual bonus ; or 
(e)  any gratuity payable on discharge ; and 
 (9) “worker” means any person including an ap prentice employed i n any industry to do any 
skilled or unskilled, intellectual, technical, clerical, manual or other work, including domestic work, 
for hire or reward, but does not include__ 
(i)   persons employed by the 2[Federal Government] or a Provincial Government ; 
(ii)  persons employed in coal mines in respect of whom minimum wages may be 
fixed under the Coal Mines (Fixation of Rates of Wages) Ordinance, 1960 
(XXXIX of 1960); and 
(iii)  persons employed in agriculture. 
 
 3. Establishment of Minimum Wag es Boards .—(1) As soon as may be after the 
commencement of this Ordinance, the Provincial Government shall establish a Minimum Wages 
Board for the Province consisting of the following four members to be appointed by it, namely:— 
 
 (a)  the Chairman of the Board ; 
 
 (b)  one independent member ; 
 
 (c)  one member to represent the employers of the Province ; and 
 
 (d)  one member to represent the workers of the Province ; 
 
 
 
1 Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981), s. 3 and Sch., II, for certain words.  
2 Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.   
 
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 Provided that for the purpose of discharging the function of a Board specified in section 5 the 
following two more members appointed by the Provincial Government shall be added, namely :— 
 
 (i)  one member to represent the employers connected with the industry 
concerned ; and  
 
 (ii)  one member to represent the workers engaged in such industry. 
 
 (2) The Chairman of the Board and the independen t member shall be appointed from persons 
with adequate knowledge of industrial, labour and economic conditions of the Province who are not 
connected with any industry or associated with any employers’ or workers’ organization. 
 
  (3) The member to represen t the employers of the Province and the member to represent the 
workers of the Province under sub -section (1) shall be appointed after considering nominations, if 
any, of such organizations as the Provincial Government considers to be representative organi zations 
of such employers and workers respectively. 
 
  (4) The members referred to in the proviso to sub -section (1) to represent the employers 
connected with and the workers engaged in the industry concerned shall be appointed after 
considering nominations, if any, of such organizations as the Provincial Government considers to be 
representative organizations of such employers and workers respectively. 
 
  (5) The term of office of the members of the Board, the manner of filling casual vacancies 
therein, the appointment of its committees, if any, the procedure and conduct of the meetings of the 
Board and its committees and all matters connected therewith, including the fees and allowances to 
be paid for attending such meetings, and other expenses, including expenses for the services of 
experts and advisers obtained by the Board, shall be such as may be prescribed by rules made under 
section 17. 
  
 4. Recommendation of minimum rates of wages for unskilled and Juvenile workers .—
(1) A Board shall, upon a referen ce made to it by the Provincial Government, recommend to such 
Government, after such enquiry as the Board thinks fit, the minimum rates of wages for adult 
unskilled workers and juvenile workers employed in industrial undertakings in the Province. 
 
 (2) In its recommendations under sub -section (1), the Board shall indicate, whether the 
minimum rates of wages should be adopted uniformly throughout the Province or with such local 
variations for such localities as are specified therein. 
  
 5. Recommendation of minimum rates of wages for workers with respect to particular 
industries. __(1) Where in respect of any particular industry in the Province for which no adequate 
machinery exists for effective regulation of wages, the Provincial Government is of the opinio n that, 
having regard to the wages of the workers employed in the under takings engaged in such industry, it 
is expedient to fix the minimum rates of wages of such workers, it may direct the Board to 
recommend, after such enquiry as the Board thinks fit, t he minimum rates of wages either for all 
such workers or for such of them as are specified in the direction 
 
 1[*  *  *  *         *                         *           *]     
 
 
1 The original proviso was omitted by A.O., 1964, Art. 2 and Sch.   
 
 
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 (2) In p ursuance of a direction under sub -section (1), the Board may recommend minimum 
rates of wages for all classes of workers in any grade and, in such recommendation, may specify— 
 
(a)    the minimum rates of wages for— 
 
(i)  time work ; 
 
(ii)  piece work ; 
 
(iii)  overtime work ; and 
 
(iv)  work on the weekly day of rest and for paid holidays ; and 
 
(b) the minimum time rates for workers employed on piece work so as to 
 guarantee minimum wages on a time basis for such workers. 
 
 (3) The time rates recommended b y the Board may be on hourly, daily, weekly or monthly 
basis. 
 
 (4) The rates recommended under this section for overtime work and work on paid holidays 
shall not be less than the minimum rates fixed for such work under any other law for the time being 
in force. 
 
 6. Power to declare minimum rates of wages .—(1) Upon receipt of a recommendation of 
the Board under section 4 or section 5, the Provincial Government may,— 
 
 (a) by notification in the official Gazette, declare that the minimum rates of wages 
recommended by the Board for  the various workers shall, subject to such 
exceptions as may be specified in the notification , be the minimum rates of 
wage for such workers ; or 
 
 (b) if it considers that the recommendation is not in any respect,  equitable to the  
employers or the workers, within thirty days of such receipt, refer it back to 
the Board for reconsideration with such comments thereon and giving such 
information relating thereto as the Provincial Government may think fit to 
make or give. 
 
 (2) Where a recommendation is referred b ack to the Board under clause (b ) of sub -section 
(1), the Board shall reconsider it after taking into account the comments made and information given 
by the Provincial Government and, if necessary, shall hold further enquiry and  submit to such 
Government— 
 
 (a) a revised recommendation, or 
 
 (b)  if it considers that no revision or change in the recommendation is called for, 
make report to that effect stating reasons therefor. 
 
 (3) Upon receipt of the recommendation of the Board  under sub-section (2), the Provincial 
Government may, by notification in the Official Gazette, declare that the minimum rates of wages 
recommended under that sub -section by the Board for various workers shall, subject to such 
 
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modifications and exceptions as may be specified in the notification, be the minimum rates of wages 
for such workers. 
 
  (4) Unless any date is specified for the purpose in the notification under sub -section (1) or 
sub-section (3), the declaration thereunder shall take effect on the  date of publication of such 
notification. 
 
 (5) Where after the publication of a notification under sub -section (1) or sub -section (3) or 
after the minimum rates of wages declared thereunder have taken effect, it comes to the notice of the 
 Provincial Government that there is a mistake in the minimum rates of wages so declared, or 
that any such rate is inequitable to the employers or the workers, it may refer the matter to the Board 
and any such reference shall be deemed to be a reference under sub-section (2). 
 
 1[*  *  *  *         *  *            * ]   
 
  (7) The minimum rates of wages declared under this section shall be final and shall not in any 
manner be questioned by any person in any Court or before any authority. 
 
 7. Periodical review of minimum rates of wages .—(1) The Board s hall review its 
recommendations if any change in the economic conditions and cost of living and other relevant 
factors so demand, and recommend to the Provincial Government any amendment, modification or 
revision of the minimum rates of wages declared under section 6 : 
 
 Provided that no recommendation shall be reviewed earlier than one year from the date on 
which it was made, unless the special circumstances of a case so required, and later than three years 
from such date.  
 
 (2) Review and recommendation under this section shall be deemed to be an enquiry and 
recommendation under section 4 or, as the case may be , under section 5, and, so far as may be, the 
provisions of this Ordinance shall, to such review and recommendation, apply accordingly.    
 
  8.   2[Omitted.] 
  
 9. Prohibition to pay wages at a rate below the minimum rate of wages .__(1) Subject only 
to such deductions as may be authorized under this Ordinance or under any other law for the time 
being in force, no emplo yer shall pay any worker wages at a rate lower than the rate declared under 
this Ordinance to be the minimum rate of wages for such worker. 
 
 (2) Nothing in sub-section (1) shall be deemed— 
  
(a)  to require or authorize an employer to reduce the rate of w ages of any worker 
; or 
 
 (b)  to affect, in any way, the right of a worker to continue to receive wages at a 
rate higher than the minimum rate declared under this Ordinance if, under any 
agreement, contract or award, or as a customary differential, or oth erwise, he 
is entitled to receive wages at such higher rate, or to continue to enjoy such 
amenities and other advantages as are customary for such worker to enjoy ; or 
 
 
1The original sub-section (6) omitted by A.O., 1964, Art. 2 and Sch.   
2Omitted by A.O., 1964, Art. 2 and sch.     
 
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 (c)  to affect the provisions of the Payment of Wages Act, 1936 (IV of 1936).  
 
 (3) Any employer who contravenes the provisions of this section shall be punishable with 
imprisonment for a term which may extend to six months or with fine which may extend to five 
hundred rupees or with both, and if the Court trying such contravention by order so directs, shall also 
pay to the worker concerned such sum as may be specified in the order to represent the difference 
between the amount actually paid to such worker and the amount which would have been paid to him 
had there been no such contravention. 
 
 10. Cognizance of offences.—No Court inferior to that of a Magistrate of the first class shall 
take cognizance of an offence punishable  under this Ordinance or the rules made thereunder, and 
cognizance shall not be so taken except upon a complaint in writing made by the Pro vincial 
Government or by any person authorized in this behalf by such Government. 
 
 11. Protection of the proceeding s of a Board or the Council. —No act or proceeding of a 
Board    1[* * *] shall be invalid or ques tioned merely on the ground of existence of any 
vacancy therein or of any defect in the constitution or in the appointment or qualification of any 
member thereof.   
 
  2[12. Powers of Boards, etc., to collect information .—(1) Any Board or the Chairman of a 
Board may, for the purpose of an enquiry under this Ordinance or the rules made thereunder, direct 
any employer to furnish such records, documents or informa tion and do such other acts as the Board 
or the Chairman, as the case may be, may require, and every such employer shall comply with such 
direction.] 
 
 (2) The Chairman of the Boards 3[* * *] and such members, officers and servants 
thereof as are authorized in this behalf by the Chairman, may, for the discharge of any function under 
this Ordinance or the rules made thereunder,— 
 
(a)  enter, at all reasonable times, any factory ; 
 
 (b)  inspect any books, registers and other documents relating to such factory ; and 
 
 (c)  record statements of persons connected with the working of such factory; 
 
 Provided that no one shall be required under this clause to answer any question tending to 
criminate himself. 
 
  (3) Any employer who contravenes the provisions of su b-section (1), and any person who 
wilfully obstructs anyone in the exercise of any power under sub -section (2), or fails to produce on 
demand thereunder any books, registers or other documents, shall be punishable with fine which may 
extend to five hundred rupees. 
 
 13. Certain powers of Court to Boards, etc.—The Boards 4[*  *   *] shall, while holding an 
enquiry under this Ordinance or the rules made thereunder, be deemed to be Civil Courts and shall 
have the same powers as are vested in such Courts under the Code of Civil Procedure, 1908 (Act V 
of 1908), in respect of the following matters, namely :— 
 
1 The original words “or of the Council” omitted by A.O., 1964, Art. 2 and Sch.  
2 Subs. ibid. for the original, sub-section (1).  
3 The words and comma “and the Council,” were omitted, ibid.  
4 The words “and the Council”, omitted ibid.   
 
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(a)  enforcing the attendance of any person and examining him on oath ;and  
 
(b)  compelling the production of documents and material objects ; 
 
(c)  issuing commissions for the examination of witnesses. 
    
 14. Chairmen, etc., deemed to be public servants .__ The Chairmen of the Boards  1[* * *] 
and the members, officers and servants thereof, shall all be deemed to be public servants within the 
meaning of section 21 of the Pakistan Penal Code (Act XLV of 1860). 
 
  15. Bar to legal proceedings .— No suit, prosecution or other legal proceeding shall lie 
against any person for anything which is in good faith done or intended to be done under this 
Ordinance or the rules made thereunder. 
   
 16.    2[Omitted.]  
 
  17. Rules relating to Boards .__(1) Subject to the provisions of section 16, the Provincial 
Government may, by notification in the o fficial Gazette, make rules for carrying out the purposes of 
this Ordinance. 
 
  (2) Without prejudice to the generality of the foregoing power, such rules may provide for__ 
 
 (a)  the matters specified in sub-section (5) of section 3 ; 
 
 (b)  the giving of opportunities to persons likely to be affected by the minimum 
rates of wages to offer comments and make suggestions ; 
  
(c)  fixing normal hours of work for the purpose of determining time work ; 
 
(d)  giving adequate publicity to the minimum rates of wages declared under this 
Ordinance ; 
 
(e)  the maintenance of wage books, wage slips, regist ers and other records and 
prescribe their forms and particulars to be entered therein and the manner of 
authenticating such entries ; 
 
(f )  the preparation and submission of reports and returns ; 
 
(g)  the appointment of Inspectors or other officers and p rescribe their powers and 
functions ; and 
(h) such other matters for which rules are considered necessary for effectively 
carrying out the provisions of this Ordinance. 
 
 (3) Rules made under this section may provide that any contraven tion thereof shall b e 
punishable with fine not exceeding five hundred rupees. 
 
  18. 3[Omitted.] 
Date: 22.04.2024 
1The words and comma “and the Council,” were omitted by A.O., 1964, Art. 2 and Sch.   
2Omitted by A.O., 1964, Art. 2 and Sch. 
3Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981, s. 3) and Sch. II.