Paving way for consolidation of more than a dozen different central labour laws dealing with wages of labourers, the union cabinet has given its approval to the new wage code bill, which will ensure a minimum wage across all sectors by integrating four labour related laws and is expected to significantly improve the ease of doing business. The Labour Code on Wages Bill would amalgamate Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. The proposed legislation is expected to benefit over 4 crore employees.
The Second National Commission on Labour had recommended that the existing labour laws should be broadly grouped into four or five Labour Codes on functional basis. The Labour Ministry has taken steps for drafting four Labour Codes - on wages, industrial relations, social security and welfare and safety and working conditions by simplifying, amalgamating and rationalising the relevant provisions of the existing central labour laws.
The bill seeks to empower the Centre to set a minimum wage across all sectors in the country and states will have to maintain that. However, states will be able to provide for higher minimum wage in their jurisdiction than fixed by the central government. The new minimum wage norms would be applicable for all workers irrespective of their pay. At present, the minimum wages fixed by the Centre and states are applicable to workers getting up to Rs 18,000 per month. Besides, the Labour Code on Wages bill is likely to be introduced in the ongoing monsoon session of parliament.
