Wage Code Clarifies Status Of Supervisory Staff; Rs 18,000 Ceiling Set For ‘Worker’ Definition

New Delhi, Feb 2 (KNN) The ministry of Labour and Employment has issued a Gazette notification clarifying the classification of supervisory personnel under the Code on Wages, 2019, with implications for eligibility to statutory wage related benefits.

As per notification S.O. 454(E), the Central Government has fixed a monthly wage ceiling of Rs 18,000 for employees engaged in supervisory roles to determine whether they fall within the legal definition of a ‘worker'.

However, supervisory staff drawing wages for Rs 18,000 or less per month, along with sales promotion employees, will continue to be classified as ‘workers’ under the Code. 

The clarification is significant as statutory protections such as minimum wage entitlement and other wage related safeguards under the Labour Codes apply only to those classified as ‘workers’.

Supervisory employees earning above the threshold will remain ‘employees’ for contractual and service related purposes, but will not be eligible for worker specific statutory benefits.

The notification aims to remove ambiguity in the application of the Code on Wages, particularly for establishments employing supervisory staff across sectors. 

(KNN Bureau)