Guaranteed salary on time to fixed work hours: Modi govt may implement new rules for workers by September

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Updated: Jul 09, 2020 8:21 PM

Narendra Modi government at the Centre is likely to implement the rules for Code on Wages 2019 by September this year.

code on wages 2019 rulesDraft Code on Wages 2019 rules here

Narendra Modi government at the Centre is likely to implement the rules for Code on Wages 2019 by September this year. The Union Ministry of Labour has put the draft rules issued on July 7 in the Official Gazette. It will remain open for public feedback for 45 days and then implemented if there is no issue, PTI reported today. The Code was approved by the Parliament in August last year. The new Wage Code is expected to benefit about 50 crore workers in the country.

The Code on Wages Bill, 2019 has amended and consolidated laws relating to wages, bonus and related matters. After enactment, the Code would subsume four labour laws – Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act and Equal Remuneration Act.

Here are key points of the Code on Wages Draft Rules:

Guaranteed minimum pay and timely payment of salary to workers

The Code on Wages has universalised the provision of minimum wages and timely payment of wages to all employees irrespective of the sector and wage ceiling. The Code seeks to address the problems relating to delay in payment of wages. It would also ensure that there is no discrimination between male and female as well as transgenders in getting wages.

Simple definition

Code on Wages has simplified the definition of labour. It is expected to reduce litigation and also reduce compliance cost for employers.

Working hours

As per the draft rules, eight hours working day would be mandatory under the Code of Wages. There is no change in the working hours provision as provided under the Factory Act. It was earlier expected that the government may increase work hours because of the impact of COVID-19  on the economy.

Floor wage calculation

As per the draft rules, the floor wage will be computed based on minimum living conditions, benefitting about 50 crore workers across the country.

The draft rules say that a central advisory board would fix the floor-level minimum wages while taking into account the minimum living standard including the food, clothing, housing and any other factors considered by the government.

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