Cabinet clears minimum wage code bill

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Union cabinet cleared the first of the four labour codes on wages, paving way for consolidation of more than a dozen different central labour laws dealing with wages of labourers.

Features of the Bill

  • Bill also seeks to empower the Centre to set a minimum wage across sectors, and states will have to maintain that. However, states will be able to provide higher minimum wage in their jurisdiction than fixed by the central government since labour is in the concurrent list.
  • Once approved by Parliament, even workers getting monthly pay of higher than Rs 18,000 would be legally entitled to a minimum wage ensure a universal minimum wage for all industries and workers.
  • Besides, the minimum wage will be applicable on all classes of workers. Now it made for all classes.
  • The Centre to notify a national minimum wage below which no state can fix their minimum wages and this will be revised every two years.

Under the code on wages, the labour ministry plans to streamline the definition of wages by amalgamating four wage-related statutes. These include the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. At present, there are about half a dozen definitions of wages in various acts across the Centre and states, which employers have to grapple with.


Source : ET

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation

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