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Labour Code on Minimum Wages notified; minimum wage to be based on geography & skills now

Updated: Aug 22, 2019 08:51:47am
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Labour Code on Minimum Wages notified; minimum wage to be based on geography & skills now

New Delhi, Aug 22 (KNN) The Ministry of Law and Justice has notified the labour code on wages. The Bill had received the assent of the President on August 8, 2019. The bill have now paved way for as many as 50 crore workers to become eligible for mandatory minimum wages.

This is the first in a series of four labour codes proposed in the government’s labour reform initiative.

The minimum wage fixed by the Centre will no longer be based on employment but on geography and skills.

The code states that, “No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.”

The code also clearly states that, “There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of a similar nature done by any employee.”

There are several labour laws which are very old.

The code ensures minimum wages along with timely payment of wages to all employees and workers. Many unorganised sector workers like agricultural workers, painters, persons working in restaurants and dhabas and chowkidars, who were outside the ambit of minimum wages, will get legislative protection of minimum wages after the bill becomes an act.

The bill will ensure that employees getting a monthly salary are paid by the 7th of the following month. Those working on a weekly basis will be paid on the last day of the week and daily wagers should get them on the same day.

The minimum rate of wages on time work basis may be fixed in accordance with anyone or more of the following wage periods, namely:––(i) by the hour; or(ii) by the day; or(iii) by the month, the Labour Code states.

The Labour Code notification also clarifies that in fixing minimum rates of wages for the first time or in revising minimum rates of wages under this Code, the appropriate Government shall either —appoint as many committees as it considers necessary to hold enquiries and recommend in respect of such fixation or revision, as the case may be; or by notification publish its proposals.

The appropriate Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years, it said.

The Code on Wages seeks to universalize the provisions of minimum wages and timely payment of wages, which will be computed based on minimum living conditions. It is envisaged that states will notify payment of wages to workers through digital mode.

The labour ministry has decided to amalgamate 44 labour laws into four codes — on wages, industrial relations, social security, and safety, health and working conditions. (KNN Bureau)

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