Parliament approves wage code bill providing minimum wages for workers

Parliament  approved a bill to enable introduction of minimum wage for every worker besides addressing issues like delay in payment to employees.

  1. The Code on Wages Bill, 2019 — which seeks to amend and consolidate the laws relating to wages, bonus and matters connected therewith ;
  2. The Bill will subsume four labour laws — Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act and Equal Remuneration Act;
  3. .It aims to make provision for a national mandatory minimum wage.It makes provision for application of minimum wages for both informal and formal sector workers;
  4. As per the bill, the tripartite committee comprising representatives of trade unions, employers and state government would fix a floor wage for workers throughout the country;
  5. Draft law will effectively address the problems relating to delay in payment of wages whether on monthly, weekly or daily basis;
  6.  The bill will ensure that there is no discriminations between male and female as well as transgenders in getting wages;
  7. It also aims to rationalize the number of wage types from around 2,000 categories to around 200 and reduce the influence of inspectors on companies;
  8. Also, the bill extends the time period for settlement of wage disputes to three years, up from six months to two years earlier;
  9. The floor wage will be computed based on minimum living conditions;
  10. Minimum wages in the country will be reviewed after every five years.The minister, however, said the states are free to review the minimum in 2 or three years but the maximum ceiling was 5 years.


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