The Minimum Wages Act, has been enacted by the Central Legislative Assembly from the year 1948, that sets the minimum wages that must be paid to skilled and unskilled labours. The Act gives both the Central Government and State Government jurisdiction in fixing wages. Under the law, wage rates in scheduled employments different across states, sectors, skills, region and occupation owing to difference in cost living, regional industries' capacity to pay, consumption pattern etc. Payment of wages below the minimum wage rate amounts to forced labour.