The Code on Wages Bill 2017 (Important) (Download PDF)

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As part of labour law reforms, the Government has undertaken the exercise of rationalization of the 38 Labour Acts into 4 labour codes- Code on Wages, Code on Industrial Relations, Code on Social Security, and Code on occupational safety, health, and working conditions.

4 Wages Acts
  • The Code on Wages Bill 2017 was introduced in Lok Sabha on 10.08. 2017 subsuming 4 existing Laws:
    • The Minimum Wages Act, 1948
    • The Payment of Wages Act, 1936
    • The Payment of Bonus Act, 1965
    • The Equal Remuneration Act, 1976
  • The codification removes the multiplicity of definitions and authorities leading to ease of compliance without compromising wage security and social security of the workers.
  • Presently provisions of the Minimum Wages Act and the Payment of Wages Act do not cover substantial number of workers with both Acts restricted to the Scheduled Employments and Establishments.
  • New Code on Wages ensures minimum timely wage payment to all employees irrespective of the sector of employment.
  • Introduces a concept of statutory National Minimum Wage for different geographical areas to ensure no State Government fixes the minimum wage below the National Minimum Wages for that particular area.
Main Features of the Code of Wages Bill
  • The minimum wages will vary from place to place depending upon skill required, arduousness of the work assigned and geographical location.
  • Proposed payment of wages through cheque, or electronic mode would promote digitization and extend wage and social security to the worker.
  • Provision of an Appellate Authority made between the Claim Authority and the Judicial Forum for speedy, cheaper, and efficient grievance redressal
  • Penalties under Code rationalized with repeat offenders penalized heavily- compounding of offences for those not punishable by a penalty of imprisonment.
  • Code on Wages Bill 2017, in the clause 9 (3) provides for a consultative mechanism before determining the national minimum wage.

- Published/Last Modified on: October 9, 2017


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