MANDATORY MINIMUM WAGES 

 

For: Mains

Topics covered: Labour code on mandatory minimum wages – Aim, Key highlights

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News Flash

Government has notified the labour code on wages. The code ensures minimum wages along with timely payment of wages to all employees and workers.

• With this, around 50 crore workers to become eligible for mandatory minimum wages.

 

Highlights

• The minimum wage fixed by the Centre will no longer be based on employment but on geography and skills.
• Many unorganised sector workers (agricultural workers, painters, persons working in restaurants and dhabas and chowkidars), who were outside the ambit of minimum wages, will get legislative protection of minimum wages after the bill becomes an act.
• The bill will ensure that employees getting a monthly salary are paid by the 7th of the following month.
• Those working on a weekly basis will be paid on the last day of the week and daily wagers should get them on the same day.
• It is envisaged that states will notify payment of wages to workers through digital mode.

 

Aim

The Code on Wages seeks to universalise the provisions of minimum wages and timely payment of wages, which will be computed based on minimum living conditions.

 

Background

The labour ministry has decided to amalgamate 44 labour laws into four codes — on wages, industrial relations, social security, and safety, health and working conditions.

 

Way forward

Under the code on wages, the labour ministry plans to streamline the definition of wages by amalgamating four related statutes: the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.

 

Source: ET

 

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