Govt Will Enforce Rules For Guaranteed, Timely Salary For 50 Cr Indians; Fix Working Hours

The Government of India is expected to implement the rules for Code on Wages 2019 by September, 2020.

This new Code on Wages is likely to benefit around 50 crore workers in the country.

Read on to find out more…

What is the Fuss About?

Code on Wages has simplified the definition of labour. It is expected to reduce litigation and also reduce compliance cost for employers.

PTI reported, The Union Ministry of Labour has put the draft rules issued on July 7 in the Official Gazette. It will remain open for public feedback for 45 days and then implemented if there is no issue. 

The Code was approved by the Parliament in August of 2019. 

The Code on Wages Bill, 2019 has revised and merged the laws related to wages, bonus and other tangential matters. 

After the enactment of this Code, it would link 4 labour laws namely Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act and Equal Remuneration Act.

The Code on Wages is part of labour reforms. It is also the first law under the central government’s initiative which would be implemented.

Key Features of the Code on Wages Draft Rules

1. Guaranteed minimum salary and timely payment of the same to all employees irrespective of the sector and wage ceiling. The Code seeks to address the problems relating to delay in payment of wages. 
2. No discrimination between male and female as well as transgenders in getting wages.
3. The Code is expected to reduce litigation and also reduce compliance costs for employers
4. Mandatory 8 hours working day. There is no change in the working hours provision as provided under the Factory Act. 
5. The floor wage will be calculated based on minimum living conditions and which would benefit about 50 crore workers across the country.
6. A central advisory board would fix the minimum floor-level wages while considering the minimum living standard including the food, clothing, housing and any other factors considered by the government.