Bill to fix minimum wage for unorganized sector introduced in Lok Sabha

Code on Wages 2017 Bill that seeks to fix a national minimum wage was introduced in the Lok Sabha on August 10, 2017. Introducing the Bill, Labour Minister Bandaru Dattatreya said, Code on Wages Bill will consolidate and amend the laws relating to wages and bonus.

Key Provisions of Code on Wages 2017 Bill:

  • The Code offers for the government to determine the minimum wages every five years using factors like skills required for the job, arduousness of work, geographical location of work place and other aspects.
  • Such wages are to be fixed on recommendation of panels comprising an equal number of representatives of employers and employees, and independent persons.
  • The Bill seeks to unite four laws — the Payment of Wages Act 1936, the Minimum Wages Act 1948, the Payment of Bonus Act 1965 and the Equal Remuneration Act 1976.
  • The government will fix the number of hours of work that would include a day of rest every seven days. The payment for work on a day of rest will not be less than overtime rate.
  • The Code stipulates that the wages are to be paid in coin or currency notes or by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employee.
  • The government may specify industrial or other establishment where the salary will be paid only through cheque or digital mode. 
  • The Bill will help 40 crore unorganized sector workers to avail the universal minimum wage.

Payment Frequency under Code on Wages Bill:

  • Daily wages have to be paid at the end of the shift while the weekly ones on the last working day of the week.
  • Workers engaged in fortnightly employment will get wages before the end of the second day after the end of the working period.
  • For the monthly earner, the payment will have to be made before the expiry of the seventh day of the succeeding month.

 

 

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