Last Day, India Cabinet clears Minimum Wages Bill Code, main points regarding this are given below
The Union cabinet today cleared a plan to introduce a pan-India minimum wage that will cover all sectors of the economy.
The Labour Code on Wages Bill seeks to empower the Centre to fix a universal minimum wage for workers across the country. The new law is expected to benefit over 4 crore employees across the country.
The Code will consolidate four different wage-related laws: the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.
The new code will also cover employees who draw more than Rs. 18,000 a month who are currently outside the ambit of the Minimum Wages Act.
The bill is likely to be introduced in Parliament during the monsoon session which concludes on August 11.
The Centre will revise the national minimum wage every two years. The frequency of the wage revision could become every five years if dearness allowance is included in the wage.
The new minimum wage code will also seek to adopt a universal definition of the terms like wages and salaries. At present, employers across different sectors have to grapple with at least a dozen definitions of wage-related terms strewn across various Acts passed by the Centre and the states.
Four bills that will be consolidated in the Labor Code on Wages Bill include the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976