Is Code of Wages legally applicable as on date - would like to confirm if the Code of Wages has been passed as Law?

deenajag
Good Morning,
Query 1) I would like to confirm if the Code of Wages has been passed as Law and if the Date of applicability has been given in the Gazette.
Query 2) Does it say anything about the split % between Basic+DA, HRA and Other allowances?
Looking forward to the reply.
umakanthan53
Dear Deena,
1) The Code on Wages,2019 had already been passed as Law and the Central Rules have been published. But the date of notification for application is yet to be issued.
2) I think it is better that you go through section 2(y) of the COW,2019 which defines the term " wages".
Under this definition the components which have been INCLUDED to normally constitute wages are - (1) Basic Pay (2) Dearness Allowance and (3) Retaining
Allowance.
All other items in the name of allowances including HRA and Conveyance Allowance and other payments thus enumerated under clauses (a) to (k) are normally
EXCLUDED.
BUT, the first proviso to the section restricts the proportion of such allowances to 50% of the total remuneration, the excess shall be added to wages.
Similarly, inclusion of certain excluded allowances is there in the second proviso for the purpose of calculation of equal remuneration irrespective of sex.
deenajag
Dear Sir,
Many Thanks for the info.
Regards,
Deena
Bhartiya Akhil
Dear Umakanthan Sir,

I think, till date the Central Government has not finalised the rules.

Vide notification dated 07.07.2020 the draft rules were published second time for objections and suggestions and the said draft rules were to be taken into consideration after the expiry of a period of forty-five days from 07.07.2020. Forty-five days are over but to my knowledge till date there is no final notification on it.

Though the CoW is a Law of our country but it has no enforceability till such time the rules are not notified.

Unfortunate part is, most of the State Governments has not even done any home work on rules to be framed under their jurisdiction including the State of Maharashtra, as told to me by some one. Under this circumstances, the question will arise whether central rules will be applied to every State or otherwise wait for indefinite long time like we experienced in implementing BOCW Act.

I would like to have your valuable comments on it.
umakanthan53
Dear Akhil,
I also share your concern. I am told that in Tamilnadu, recently the State Labor Dept Officers have been asked to offer their suggestions/remarks over the proposed Central Rules so as to draft the State Rules. Of course it is a laborious task if one sincerely makes a comparative assessment of the Code and its proposed Rules with the existing laws on the subjects included in the Code. But I hope that majority of the States will soon simply adopt the central Rules by simply shuffling rule numbers, format of notices and the like.
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