CODE ON WAGES BILL

- By Ankit Agrawal
 ankitmay28
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Q- Select the correct option.

1- Matters related to labour comes under Union List of 7th Schedule.

2- India has ratified both Convention No.138 & Convention No. 182
of International Labour Organisation.

A)- Only 1
B)- Only 2
C)- Both 1 & 2
D)- None of the above
The bill lapsed at the end of 16th Lok Sabha.
Hence the new bill.
 PROBLEM WITH CURRENT WAGE ACT

The current Minimum Wages Act and the Payment of

Wages Act apply only to employees engaged in certain
kinds of jobs.

Whereas the new bill will cover employees in both the

organised and unorganised sectors.
 WHAT IS THE NEW CODE ON WAGES

The Code on Wages is the first of four proposed

labour bills long envisaged to replace 44 archaic
labour laws.
The 4 proposed labour bills. Wage
code

Industrial Labour Industrial

safety & reform
relations
welfare bills

Social
security
The Code on Wages Bill replaces four
existing laws:

(i) the Payment of Wages Act, 1936,

(ii) the Minimum Wages Act, 1948,
(iii) the Payment of Bonus Act, 1965,
(iv) the Equal Remuneration Act, 1976.
 FEATURES

• The union govt. will set minimum wages for certain employments
including railways, and mines.

• State governments will set minimum wages for all other

employments.

• A national minimum wage may be set by the central government.

• States cannot set minimum wages lower than the national

minimum wage.
• The bill also allows the Centre to set different national
minimum wages for different parts of the country.

• Wages must be revised by the central or state

governments every five years.

• The overtime rate will be at least twice the normal rate

of wages of the employee.
• It also allows payment of wages by depositing the same
in the bank account of the employees, electronically or
by cheque.

• The Bill also provides for an appellate authority for

speedier dispute resolution.
The central government and state governments will constitute
the Central Advisory Board and State Advisory Boards
respectively.

These boards will consist of:

(i) employers,
(ii) employees in equal number as the employers,
(iii) independent persons.

They will advise the central or state governments on issues such

as setting and revision of minimum wages
 MOST IMPORTANT BENEFIT

It will further enhance the ease of doing business in the country

 SHORTCOMINGS IN THE BILL

• If existing minimum wages set by states are higher than the

national minimum wage, they cannot reduce the minimum wages.

• Currently, state governments have flexibility in revising minimum

wages, as long as it is not more than five years. It is still unclear
why this provision has been removed.

• While the Code prohibits gender discrimination on wage-related

matters, it does not include provisions regarding discrimination
during recruitment.
Q- Select the correct option.

1- Matters related to labour comes under Union List of 7th Schedule.

2- India has ratified both Convention No.138 & Convention No. 182
of International Labour Organisation.

A)- Only 1
B)- Only 2
C)- Both 1 & 2
D)- None of the above
Answer- B
CODE ON WAGES BILL
- By Ankit Agrawal