2. At present, the provisions of the
Minimum Wages Act and the Payment of Wages Act do not cover substantial number
of workers, as the applicability of both these Acts is restricted to the
Scheduled Employments / Establishments. However, the new Code on Wages will
ensure minimum wages to one and all and timely payment of wages to all
employees irrespective of the sector of employment without any wage ceiling.
3. A concept of statutory National Minimum
Wage for different geographical areas has been introduced. It will ensure that
no State Government fixes the minimum wage below the National Minimum Wages for
that particular area as notified by the Central Government.
4. The proposed payment of wages through
cheque or digital/ electronic mode would not only promote digitization but also
extend wage and social security to the worker. Provision of an Appellate
Authority has been made between the Claim Authority and the Judicial Forum
which will lead to speedy, cheaper and efficient redressal of grievances and
settlement of claims
5. Penalties for different types of
violations under this Code have been rationalized with the amount of fines
varying as per the gravity of violations and repeat of the offences. Provision
of compounding of offences has been made for those which are not punishable by
a penalty of imprisonment.
6. Recently, some news reports have been
published regarding the fixation of minimum wage as Rs. 18000/- per month by
the Central Government. It is clarified that the Central Government has not
fixed or mentioned any amount as “national minimum wage” in the Code on Wages
Bill 2017. The apprehension that minimum wage of Rs. 18000/- per month has been
fixed for all employees is, thus incorrect, false and baseless. The minimum
wages will vary from place to place depending upon skill required, arduousness
of the work assigned and geographical location.
7. Further, the Code on Wages Bill 2017, in
the clause 9 (3), clearly states that the Central Government, before fixing the
national minimum wage, may obtain the advice of the Central Advisory Board,
having representatives from employers and employees. Therefore the Code provide
for a consultative mechanism before determining the national minimum wage.
8. Some reports have also been appearing in
the media regarding the revised methodology for calculation of minimum wages by
enhancing the units from three to six. It was purely a demand raised by Trade
Unions in the recent meeting of the Central Advisory Board on Minimum Wages.
However it is clarified that such proposal is not part of the Code on Wages
Bill.
(P.I.B.)
(P.I.B.)