THE CODE ON WAGES, 2019
The Code on Wages, 2019 has received the assent of the President and has notified in the Official Gazette. It seeks to regulate wage and bonus payments in all employments where any industry, trade, business, or manufacture is carried out.
The Code replaces the following four laws the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.
The Code will apply to all employees.
The central government will make wage-related decisions for employments such as railways, mines, and oil fields, among others. State governments will make decisions for all other employments. Wages include salary, allowance, or any other component expressed in monetary terms. This does not include bonus payable to employees or any travelling allowance, among others.
The minimum wages decided by the central or state governments must be higher than the floor wage. In case the existing minimum wages fixed by the central or state governments are higher than the floor wage, they cannot reduce the minimum wages.
The central or state government may fix the number of hours that constitute a normal working day. In case employees work in excess of a normal working day, they will be entitled to overtime wage, which must be at least twice the normal rate of wages. Under the Code, an employee’s wages may be deducted on certain grounds including fines, absence from duty, accommodation given by the employer, or recovery of advances given to the employee, among others.
These deductions should not exceed 50% of the employee’s total wage.
The Code specifies penalties for offences committed by an employer, such as paying less than the due wages, or for contravening any provision of the Code. Penalties vary depending on the nature of the offence, with the maximum penalty being imprisonment for three months along with a fine of up to one lakh rupees.
No comments:
Post a Comment