India Cabinet Clears Minimum Wages Bill Code
Last day, the Union Cabinet 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 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 Labour 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.
Last day, the Union Cabinet 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 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 Labour 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.