Code on Wages,2019
On August 8, 2019, the Indian government passed the Code on Wages,2019, which is a piece of law. Four current labour laws concerning wages and payment of salaries are replaced by the Code, including:
- The Payment of Wages Act, 1936
- The Minimum Wages Act, 1948
- The Payment of Bonus Act, 1965
- The Equal Remuneration Act, 1976
With a universal framework for salary fixation and payment to all employees in the nation, the Code seeks to simplify and streamline the wage-related aspects of these labour laws.
The Code on Wages applies to all employees in all industries, both organised and unorganised, and stipulates the payment of a minimum wage, the payment of wages within a certain amount of time, and the prohibition of gender-based wage discrimination.
In addition, it introduces the idea of statutory minimum wages, which are set by the relevant government and are mandated for all businesses, including those in the private sector. The Code also stipulates the creation of State Advisory Boards and a Central Advisory Board to advise the relevant government on issues pertaining to the Code’s implementation.
List of States having pending Code on Wages draft rules
Most of the states have draft their rules but only three states are pending as mentioned below-
- West Bengal
Changes in Compliance
There shall be lot of changes in compliances after the implementation of the Code on Wages,2019 as follows:
Changes in the Fine and Penal Provision
Following the act’s implementation, the following revisions to the penal provisions will take effect:
|Code On Wages||Before||After|
|The Payment Of Wages Act, 1936||Min: 1,500/-
|The Minimum Wages Act, 1948||Max: 500/-||Upto 6 months||Max: 50,000/-||NIL|
|The Payment Of Bonus Act, 1965||Max: 1,000/-||Upto 6 months||Max: 20,000/-||NIL|
|The Equal Remuneration Act, 1976||Min:10,000/-
|1-3 months||Max: 20,000/-||NIL|