Cabinet clears minimum wage code bill

Written by July 27, 2017 08:22

New Delhi: Union Cabinet has approved the new wage code bill which will ensure a minimum wage across all sectors by integrating four labour related laws.

The proposed legislation is expected to benefit over 4 crore employees across the country.

The Labour Code on Wages Bill will consolidate the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.

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 bill is likely to be introduced in Parliament during the ongoing monsoon session.

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 18,000 rupees pay monthly.

Earlier in the day, Labour Minister Bandaru Dattatreya in a written reply informed the Rajya Sabha that the Second National Commission on Labour has recommended that the existing labour laws should be broadly grouped into four or five labour codes on functional basis. He said, the ministry has taken steps for drafting four Labour Codes on — Wages; Industrial Relations; Social Security & Welfare and Safety and Working Conditions.