Daily Wages workers bill

The Code on Wages, 2019


Introduced by

Mr Santosh Gangwar

Minister of Labour


The bill proposes to regulate wages and bonus of daily workers with an aim to ensure equity and ease of compliance of labor laws for setting up of more industries.


Salient Points ()

Regulation of wages and bonus

The bill seeks to regulate wage and bonus payments in all employments where any industry, trade, business, or manufacture is carried out. 

Wages bill is a replacement of 4 laws

The Code replaces the following four laws

  • The payment of Wages Act, 1936
  • The Minimum Wages Act, 1948
  • The Payment of Bonus Act, 1965
  • The Equal Remuneration Act, 1976

Floor Wage

The code provides that different floor wages to be fixed based on geographical locations, skills of the workers, living standard of the worker.

Overtime working hours

The employer will be liable to pay double the wage for hours worked in excess of the fixed hours in a normal working day.


Employees are entitled to a yearly bonus whose wages do not exceed a specific monthly amount. Minimum bonus - 8.33% or Rs 100 whichever is higher

Gender Discrimination

The employees having similar work nature will receive the same wages irrespective of gender.


The employers have the right to cut the wages -

  • Fines
  • Absence from duty
  • Accommodation is given by the employer
  • Recovery of any advances given to the employee


Currently, there are multiple and ambiguous codes on wages which have resulted in increasing cases of litigation.

The proposed bill amalgamates four labour regulation under a single umbrella with an intent to bring uniformity in legislations both the sectors – organized and unorganized


Key Stats ()

Total scheduled employments covered by the Minimum Wages Act


Scheduled job categories for unskilled workers across India covered by the Minimum Wages Act of 1948


Workers covered under the minimum wages act

50 crore workers


23 Jul 2019
30 Jul 2019
02 Aug 2019

WHY (as per the govt)

Salient Points ()

To widen the scope to ensure equity and ease of compliance of labour laws.

This would lead to setting up more industries and create more jobs.

It will also improve the ease of doing business in the country



Videos ()


Wages include salary, allowance, or any other component expressed in monetary terms. This does not include bonus payable to employees or any travelling allowance, among others.



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The Industrial Relations Code, 2020

The bill proposes to ease labor laws to promote setting up of more enterprises which would create job opportunities in the country.

The main objective is to  simplify labor rules into 4 broad categories – Code on Wages, Social Security, Industrial Relations and Occupational Safety and Health


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