The Union Cabinet approved the Code of Wages Bill, which seeks to mandate minimum wages across the country
Code of Wages Bill has been approved by The Union Cabinet, which seeks to mandate minimum wages across the country.
The Union Cabinet, on 2 July 2019, approved draft legislation which seeks to mandate minimum wages across the country. Minimum wages will be fixed pan India, across all professions by the Central Government.
Known as Code on Wages Bill, it will combine four labour laws — Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and Equal Remuneration Act, 1976.
Union Information and Broadcasting Minister Prakash Javadekar told a press conference in the Parliament that, ‘The Union Cabinet approved the Code on Wages Bill’.
The proposed law seeks to make minimum wages fixed by central government mandatory to be implemented by states for all occupations. The expert committee has suggested Rs 9750 as national minimum wage.
At present, the Centre fixes a National Floor-Level Minimum Wage – a non-statutory measure to ensure that states fix their minimum wages accordingly.
The Code on Wages Bill was earlier presented in Lok Sabha during August 2017, and it was referred to the Standing Committee that had given its comments to the labour ministry, but the Bill lapsed post the dissolution of the 16th Lok Sabha.
‘The Bill had proposed empowering the states to fix different minimum wages based on geography, skill and occupation, along with a national-level minimum wage which will act as a floor’.
Apart from Code on Wages, a Code on occupational safety health and working conditions, industrial relations and social security to be pushed next in the Parliament.