As noted above, the Indian law on wages are not applicable universally although there is an enabling

provision to expand progressively the coverage of establishments. Furthermore, only the employees
getting wages less than a ceiling (Rs 24,000 at present) are covered. The laws of comparator countries
generally cover not only wages but a number of other aspects of labour and employment as well.
Generally, all wage earners are covered although there are some specific exclusions. These countries
follow a negative list approach while the general pattern in India, including in the Payment of Wages Act,
1936, is to follow a positive list approach. 1

The enactment of the Code on Wages, 2019 (‘Wage Code’) is a long-awaited first step in rationalizing
India’s labour laws. This is significant from the standpoints of greater compliance and facilitating the
ease of doing business. Further, this is a critical reform in an area already in focus post the recent
Economic Survey and Union Budget.

The Wage Code consolidates four laws on the payment of wages and bonus viz. the Payment of Wages
Act, 1936 (‘PW Act’), the Minimum Wages Act, 1948 (‘MW Act’), the Payment of Bonus Act, 1965 (‘PB
Act’) and the Equal Remuneration Act, 1976. These laws stand repealed on the Wage Code’s enactment.

1
Labour Regulations in India:Rationalising the Laws Governing Wages, by Anwarul Hoda
Durgesh K. Rai , October 2017