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THE BILL CODE ON WAGES,2019
Prepared by – Mihika Vasava
MBA(HR)
About the act
 Amendment and consolidation
 Of laws relating to wages and bonus
 And matters connected therewith or
incidental thereto.
4 Wages acts submitted
into
1 Code
Equal Remuneration Act,1976
Minimum Wages Act,1948
Payment of Bonus Act,1965
Payment of Wages Act,1936
Why India needed a Wage Code
 62% of the workforce is made up of casual
workers who needed a right to minimum
wage
 Previous minimum wage system was
complex with states fixing rates for 1709
scheduled employments and centered for
45
 33% of wage workers were paid less than
incentive minimum wages in 2009-
10,according to Labour Ministry
Main features of the Code of
Wage Bill
 Universalized provisions of minimum
wages
 Removes multiplicity of definitions and
authorities
 Ensures timely wage payment to all
employees
 Ease of compliance will incentivize setting
up of more enterprises which will result in to
more opportunities
 Changes the role of Inspector to Facilitator
to guide and advice employers and
workers
Key highlights of the Code
 Increase in Scope & Applicability
 Wage Computation [Clause 2(y)]
 Floor Wages & Minimum Wages [Clauses
6(6) & 9]
 Overtime [Clause 14]
 Time limit for payment of wages [Clause 17]
 Prohibition of discrimination [Clause 3]
 Register [Clause 50]
 Inspection [Clause 51]
 Claims & opportunity to cure [Clauses
45(6), 54(3) & 59]
 Offences, penalty & compounding [Clauses
54 & 56]
Concluding Remarks
 Passed by the both the Houses of the
Parliament and has also received
Presidential assent
 Date of enforcement is yet to be
notified in the Official Gazettes
 The Code emphasizes on compliance
as it increases the cost of non-
compliance
 The Code makes this opportunity to
compound uniformly available and is a
step forward in the direction of ease-
of-business
 The Code also provides an
opportunity to rectify breach and in
which case employers need not worry
about prosecution
The bill code on wages,2019

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The bill code on wages,2019

  • 1. THE BILL CODE ON WAGES,2019 Prepared by – Mihika Vasava MBA(HR)
  • 2. About the act  Amendment and consolidation  Of laws relating to wages and bonus  And matters connected therewith or incidental thereto.
  • 3. 4 Wages acts submitted into 1 Code Equal Remuneration Act,1976 Minimum Wages Act,1948 Payment of Bonus Act,1965 Payment of Wages Act,1936
  • 4. Why India needed a Wage Code  62% of the workforce is made up of casual workers who needed a right to minimum wage  Previous minimum wage system was complex with states fixing rates for 1709 scheduled employments and centered for 45  33% of wage workers were paid less than incentive minimum wages in 2009- 10,according to Labour Ministry
  • 5.
  • 6. Main features of the Code of Wage Bill  Universalized provisions of minimum wages  Removes multiplicity of definitions and authorities  Ensures timely wage payment to all employees
  • 7.  Ease of compliance will incentivize setting up of more enterprises which will result in to more opportunities  Changes the role of Inspector to Facilitator to guide and advice employers and workers
  • 8. Key highlights of the Code  Increase in Scope & Applicability  Wage Computation [Clause 2(y)]  Floor Wages & Minimum Wages [Clauses 6(6) & 9]  Overtime [Clause 14]  Time limit for payment of wages [Clause 17]
  • 9.  Prohibition of discrimination [Clause 3]  Register [Clause 50]  Inspection [Clause 51]  Claims & opportunity to cure [Clauses 45(6), 54(3) & 59]  Offences, penalty & compounding [Clauses 54 & 56]
  • 10. Concluding Remarks  Passed by the both the Houses of the Parliament and has also received Presidential assent  Date of enforcement is yet to be notified in the Official Gazettes  The Code emphasizes on compliance as it increases the cost of non- compliance
  • 11.  The Code makes this opportunity to compound uniformly available and is a step forward in the direction of ease- of-business  The Code also provides an opportunity to rectify breach and in which case employers need not worry about prosecution