Code of Wages bill, passed by Parliament yet to notify

1. Code on
Wages,
2019
By DHEERAJ N

2. No Human
MASTERPIECE
has been created
without the great
LABOR.”
- ANDRE GIDE

3.  The code of wages aims to rationalize the provisions of
minimum wages and timely payment of wages to all
employees irrespective of sector and wage limits
Introduced
in Lok
Sabha
Passed in
Lok Sabha
Passed in
Rajya Sabha
Aug
10,2017
Jul
30,2019
Aug
02,2019

4. The Code on Wages, 2019 seeks to regulate the wages and bonus
payments made in all type of Industries. This code also seeks to
consolidate the various laws by replacing :
1.The Payment of Wages Act, 1936
2.The Minimum Wages Act, 1949
3.The Payment of Bonus Act, 1965 and
4.The Equal Remuneration Act,1976

5. • Wages [Section 2(y)]- Wages includes all remuneration paid by
the Employer which includes Basic Salary, allowance or any other
component expressed in monetary terms. This does not include
Bonus , HRA, Conveyance allowance, PF , Pension etc.
• Worker [Section 2(z)] – Any Person employed in industry includes
to do any manual, skilled, unskilled, technical, operational ,
clerical or supervisory work and includes Journalist and sales
promotion employees

6. • This act doesn’t cover below employed persons
 Air Force or Army or Navy
 Officers in police services
 Person in managerial or administrative capacity
 Supervisor drawing wages exceeding Rs.15,000
• The central government will make wage related decision for
employments such as mines , railways and oil fields.
• State government will make decisions for all others employments.

7. • Central government will fix the floor wages based on Standard
of living determined from time to time.
• The central government will fix different floor wage based on
different geographical area.
• Government should fix the minimum wages which should be
higher than floor wages.
• Government shall fix the minimum wages either based on
Time or based piece of work

8. • Prohibit discriminate the wages on grounds of gender including
discrimination at the time of recruitment unless explicitly
excluded as per the law. [Section 3]
• The central or state government may fix the number of hours to
determine the normal working day.

9. • Overtime wages : In case employees work in excess of normal
working day(as specified) will be entitled to overtime wages which
shall be twice the normal wages
• The employer shall fix the wages based on hourly ,daily , weekly,
fortnight or monthly. However the tenure shall not more than
month.

10. • Wages shall be paid in:
 Coins
 Currency Notes
 Cheque
 Crediting to the bank account
 Through Electronic mode
• The central government shall specify the industrial establishment
to pay wages only by cheque or crediting wages in employee bank
account

11. • All employees whose wages do not exceed specified monthly amount, will
be entitled to an annual bonus
• The bonus will be at least higher of the below :
 8.33% of his wages or
 INR 100
• Employer will distribute a part of profits/allocable surplus amongst the
employee. An employee can receive the maximum bonus of 20% of his
annual wages
• Payment of bonus to employee shall be made by the employer within the
period of 8 months from the close of accounting year

13. • Allocable surplus can be set off with Previous accounting year losses
• Arrears of Depreciation
• Set off of any carried forward excess allocable surplus
• Any Adjustment to bonus paid in customary in nature can be reduced
• Puja bonus
• Customary bonus etc

14. • Claim can be filed by
1. Employee or
2. Trade Union or
3. Facilitator or Inspector
• Application of claim shall be made within 3 years
• Audited Accounts are referred for any computation performed as per the code
• Excess of claim amount sanctioned by appropriate authority for compensation can’t
exceed the 10 times the amount of claim
• Burden of proof on Payment of wages are with the employer.

15. • Contravention of provision under this code shall be punishable
with :
• Fine maximum upto Rs 1 Lakh
• Imprisonment max upto 3 Months
• Claim can be filed by
1. Employee
2. Trade Union
3. Facilitator or Inspector