Labour Code on Wages

Prelims & Mains

Labour Code on Wages

Labour Code on wages  bill which will ensure a minimum wage across all sectors by integrating four labour related laws.

Labour Code on Wages bill is expected to benefit over 4 crore employees across the country. The Second National Commission on Labour has recommended that the existing labour laws should be broadly grouped into four or five labour codes on a functional basis.

The Labour Code on Wages Bill will consolidate the

  • Minimum Wages Act, 1948;
  • The Payment of Wages Act, 1936;
  • The Payment of Bonus Act, 1965;
  • The Equal Remuneration Act, 1976.

The bill seeks to empower the Center to set a minimum wage across all sectors in the country and states will have to maintain that.

States will be able to provide for higher minimum wage in their jurisdiction than fixed by the central government.


How Labour Code on Wages Bill will benefit employees

The new minimum wage norms would be applicable for all workers irrespective of their pay. At present, the minimum wages fixed by the Centre and states are applicable to workers getting up to Rs 18,000 pay monthly.

This would ensure a universal minimum wage for all industries and workers, including those getting monthly pay higher than Rs 18,000.

Wage Code Bill which makes it mandatory for all industries to pay a minimum category of wages across all sectors to employees

It will be done by simplifying, amalgamating and rationalising the relevant provisions of the existing central labour laws.

The Labour Code on Wages will empower the central government to notify a ‘national minimum wage’ which will be revised every two years

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Industrial strikes will now include casual concerted leave by 50 percent of more workers, while the provision for prior notice of strike would be extended to “all activities similar to existing public utility services”

All classes of workers would be able to avail the benefits of the minimum wage as long as they are employed in a scheduled industry or an establishment of law.

The pay of the workers is not a determining factor while deciding whether they get the minimum wage or not.

The wage code primarily aims at reducing the disparity in minimum wages across the states.


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