Code of Wages Bill, 2017

The Union Government as part of labour law reforms has undertaken drive to rationalize 38 Labour Acts by framing 4 labour codes viz Code on Wages, Code Code on Industrial Relations, Code on Social Security and Code on occupational safety, Health and working conditions.

The Code on Wages Bill 2017 has been introduced in Lok Sabha on August 10th 2017 and it subsumes four existing Laws, viz. the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. After the enactment of the Code on Wages, all these four Acts will get repealed.

The Codification of the Labour Laws will remove the multiplicity of definitions and authorities leading to ease of compliance without compromising wage security and social security to the workers

The code ensures minimum wages to one and all and timely payment of wages to all employees irrespective of the sector of employment without any wage wage ceiling. It introduces concept of statutory National Minimum Wage for different geographical areas. It will ensure that no state government fixes minimum wage below the National Minimum Wages for that particular area as notified by Union Government.