CODE ON WAGES 2019

1. The Central Government by Notification S.O.4604(E) has notified the

effective date of three provisions of the Code on Wages, 2019 as

18.12.2020. There is no immediate impact on businesses due to this

notification.

2. The Notification paves way for the Central Government to form the

Central Advisory Board which can recommend minimum wages and

other connected matters. The thought appears to be that the

minimum wages would be fixed in advance and this would ensure that

on the day the other provisions of the Code on Wages 2019 are

notified and made effective, there would be a notified minimum

wage. This would ensure continuity and a smooth transition from

Minimum Wages Act 1948 to the Code on Wages 2019.

3. The Central Government has however not notified the provisions

pertaining to the formation of the State Advisory Board. Unless the

provisions regarding State Advisory Board is notified, industrial

establishments for which the State Government is the appropriate

Government would not have a notified minimum wage on the day the

Code on Wages 2019 is notified. Hope the attention of the Central

Government is drawn on this aspect and it is ensured that provisions

pertaining to State Advisory Board are also notified and made

effective at the earliest.

TEAM TSG