Proposed Wage Code - Significance and Issues

The subject of labour is mentioned in the Concurrent List in the Constitution, which means that both Centre and states can make laws on it. At present, there are multiple laws governing different labour issues such as industrial disputes, payment of wages and bonus and working conditions in factories. To establish a uniform structure and for ease of compliance, the Code on Wages, 2017 (hereinafter referred to as the Code) was introduced in the Lok Sabha in 2017. It is one of the codes proposed to be introduced as part of labour law reforms. The other codes are Code on Industrial Relations, Code on Social Security and Code on Occupational Safety, Health, and Working Conditions. This article discusses the key features of the Code on Wages and the changes that it brings to the existing regime.

Wage Code- Key Features

• The Code applies to all employees except members of the Armed Forces.
• The Central or state government will fix the minimum wage payable to the employees. While the Central Government will set minimum wages for employment such as railways, mines, oil field, major ports and air transport services among others, the state government will set minimum wages for all other establishments.
• The central or state government has to take some factors into account while fixing the minimum wage. These factors include the skill required, the difficulty of the work assigned to the worker, the geographical location of the place and such other factors that the government deems necessary.
• The Code specifies the components that the minimum wage fixed or revised by the Central or state government may contain. It also lays down the procedure to be followed for fixing or revising minimum wage.
• The minimum rates of wages have to be reviewed or revised by the government (central or state) at an Continue read