Code On Wages Bill – Free PDF Download

Select the correct option.

1. Matters related to labour comes under Union List of 7 th Schedule.
2. India has ratified both Convention No.138 & Convention No. 182 of International Labour Organisation.

A)- Only 1

B)- Only 2

C)- Both 1 & 2

D)- None of the above

• The bill lapsed at the end of 16th Lok Sabha. Hence the new bill.

PROBLEM WITH CURRENT WAGE ACT

• The current Minimum Wages Act and the Payment of Wages Act apply only to employees engaged in certain kinds of jobs.
• Whereas the new bill will cover employees in both the organised and unorganised sectors.

 WHAT IS THE NEW CODE ON WAGES

• The Code on Wages is the first of four proposed labour bills long envisaged to replace 44 archaic labour laws.

• The Code on Wages Bill replaces four existing laws:
• the Payment of Wages Act, 1936,
• the Minimum Wages Act, 1948,
• the Payment of Bonus Act, 1965,
• the Equal Remuneration Act, 1976.

FEATURES

• The union govt. will set minimum wages for certain employments including railways, and mines.
• State governments will set minimum wages for all other employments.
• A national minimum wage may be set by the central government.
• States cannot set minimum wages lower than the national minimum wage
• The bill also allows the Centre to set different national minimum wages for different parts of the country.
• Wages must be revised by the central or state governments every five years.
• The overtime rate will be at least twice the normal rate of wages of the employee.
• It also allows payment of wages by depositing the same in the bank account of the employees, electronically or by cheque.
• The Bill also provides for an appellate authority for speedier dispute resolution.
• The central government and state governments will constitute the Central Advisory Board and State Advisory Boards respectively.
• These boards will consist of:
• employers,
• employees in equal number as the employers,
• independent persons.
• They will advise the central or state governments on issues such as setting and revision of minimum wages

MOST IMPORTANT BENEFIT

• It will further enhance the ease of doing business in the country

SHORTCOMINGS IN THE BILL

• If existing minimum wages set by states are higher than the national minimum wage, they cannot reduce the minimum wages.
• Currently, state governments have flexibility in revising minimum wages, as long as it is not more than five years. It is still unclear why this provision has been removed.
• While the Code prohibits gender discrimination on wage-related matters, it does not include provisions regarding discrimination during recruitment.

Q- Select the correct option.

1. Matters related to labour comes under Union List of 7 th Schedule.
2. India has ratified both Convention No.138 & Convention No. 182 of International Labour Organisation.

A)- Only 1

B)- Only 2

C)- Both 1 & 2

D)- None of the above

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