Minimum Wage: New Wage Code Bill (Download PDF)


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Labour Code on Wages Bill will ensure a minimum wage across all sectors by integrating existing labour related laws. The Labour Code on Wages Bill consolidates the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, the Payment of Wages Act, 1936 and the Equal Remuneration Act, 1976.

Minimum Wage: New Wage Code Bill

Minimum Wage: New Wage Code Bill

Minimum Wage: New Wage Code Bill


At present:

  • Laws on wages do not cover workers with monthly wage of more than Rs. 18,000
  • Are applicable only for scheduled industries or establishments.
  • There are several definitions of wages in various acts across the Centre and states making it hard for employers.
  • Second National Commission on Labour recommended that the existing labour laws be broadly grouped into four or five labour codes on Wages; Industrial Relations; Social Security & Welfare and Safety and Working Conditions on functional basis.

About the New Wage Code Bill

  • Streamlines the definition of wages by amalgamating four wage-related statutes.
  • Empowers the Centre to set a minimum wage across sectors, and states to maintain that.
  • States able to provide higher minimum wage in their jurisdiction than fixed by the Centre since labour is subject in the concurrent list.
  • First initiative of Union Government in amalgamating labour laws for ease of doing business and ensuring universal minimum wage.
  • Minimum wage applicable on all workers, even workers getting higher than Rs. 18,000
  • Expected to benefit over 4 crore employees across the country

- Published/Last Modified on: August 24, 2017


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