The Code on Wages, 2019
INTRODUCED BY
Introduced by
Mr Santosh Gangwar
Minister of Labour
SYNOPSIS
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.
HIGHLIGHTS
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.
Bonus
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.
Deductions
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
BACKGROUND
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
TIMELINES
Bill introduced in Lok Sabha.
Bill passed by Lok Sabha.
Bill passed by Rajya Sabha.
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
MEDIA SAYING
Media Saying ()
VIDEOS
Videos ()
FAQs
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.
Responses